One-glance verdict
Within fair range
$30.98 our estimate vs market $66.44
Wall Street consensus: $54.06 (74.5% higher than our fair-value estimate)
114% above our estimate
Fundamentals snapshot
Teck Resources Limited
TECK · NYQ · Basic Materials · Copper
Current price
$66.44
52-week range
$38.00 - $72.56
Market cap
$32.60B
Balance sheet
Stretched
2.12x Stretched
Net debt $2.70B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 18.7% last year.
- Reward Returns 8.7% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 2/10 years.
- Risk Forward P/E (18.5x) is higher than trailing (18.0x) - earnings are expected to drop.
What this company does
Teck Resources Limited
Teck Resources is a Canadian mining company that makes its money by finding, digging up, and selling essential metals like copper and zinc. These materials are key ingredients for construction, electronics, and cars, so Teck's financial performance often reflects the health of the global economy. As demand for new buildings and products rises, so does the demand for Teck's metals.
How the company got here
Teck began as a small gold mining company in Ontario, Canada, back in 1913. Over many decades, it grew by merging with other mining companies, most notably a company called Cominco in 2001, which made it a major player in zinc and other metals. A key turning point was the 2008 purchase of a major coal business, which for years was its biggest money-maker. More recently, Teck has completely changed its focus, selling off the coal business to bet its future on metals like copper and zinc that are essential for the world's shift to cleaner energy.
What it actually does
Teck is a mining company that finds, digs up, and processes natural resources from the earth. Think of them as a massive-scale supplier of the raw ingredients needed to build everything from skyscrapers and cars to smartphones and wind turbines. They operate huge mines in North and South America to extract these materials. After digging up rock containing these resources, they process it to create concentrated forms of metals, which they then sell to industrial customers around the world who use them to make other products.
Copper
This is now Teck's largest and most important business, making up the majority of its revenue (the total money it brings in from sales). The company operates massive open-pit mines in Canada, Chile, and Peru to dig up copper ore, which is rock containing copper. This copper is essential for things like electrical wiring in buildings and cars, electronics, and renewable energy systems like solar panels and wind turbines. Customers, which are typically smelters or manufacturers, buy this copper to use in their own production processes.
Zinc
This is Teck's other major business line. The company is one of the world's largest producers of zinc, which it mines primarily at its Red Dog mine in Alaska. It also runs a large facility in Trail, British Columbia, that refines zinc and other metals into a purer, more usable form. The main use for zinc is to galvanize steel, which means giving it a protective coating to prevent rust, making it crucial for construction and car manufacturing. It's also used in batteries and as a component in fertilizers.
What management is betting on now
Management is focused on transforming Teck into a leading producer of metals needed for the global shift to cleaner energy, especially copper. A huge part of this strategy was the recent sale of its entire steelmaking coal business, making it a pure-play company focused on copper and zinc. The company is investing heavily in expanding its copper production, particularly at its Quebrada Blanca (QB2) project in Chile. They are also planning a major merger with another large mining company, Anglo American, to become one of the world's top copper producers.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $30.98 vs current price $66.44
Wall Street consensus is the average analyst price target: $54.06 (74.5% higher than our fair-value estimate).
Our most-likely fair value is $30.98 a share — about 53.4% away from today's price of $66.44, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $2.7B. Interest coverage 2.1x.
Net debt
$2.70B
Interest coverage
2.12x
Teck Resources Limited's profit covers its interest bill about 2.1 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
TECK
BASELINE
Teck Resources Limited
Total debt $7.06B Interest coverage 2.12x This is the baseline the peer rows are being compared against.
Total debt $10.36B Interest coverage 17.62x +732% vs TECK Carries about 8.3x more debt cushion than TECK.
Total debt $8.62B Interest coverage 18.96x +795% vs TECK Carries about 9.0x more debt cushion than TECK.
Total debt $28.43B Interest coverage 12.10x +471% vs TECK Carries about 5.7x more debt cushion than TECK.
Total debt $22.85B Interest coverage 8.45x +299% vs TECK Carries about 4.0x more debt cushion than TECK.
What you should know
The case for and against TECK
3 Rewards
1 Risk
Rewards
-
Revenue grew 18.7% last year.
-
Returns 8.7% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
-
Forward P/E (18.5x) is higher than trailing (18.0x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.01x
Forward P/E
18.46x
P/B
1.63x
P/S
2.33x
EV/EBITDA
5.69x
PEG ratio
3.97x
Profitability
How much profit each dollar creates
Gross margin
36.0%
Operating margin
44.1%
Net margin
17.9%
ROE
8.7%
ROA
6.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.34x
Current ratio
3.12x
Quick ratio
2.18x
Total debt
$7.06B
Total cash
$4.36B
Growth
How the business has been compounding
Revenue TTM
$10.09B
Revenue 5Y CAGR
-14.7%
EPS TTM
3.69
EPS 5Y CAGR
-23.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.07B
Free CF TTM
$-420.48M
FCF margin
-4.2%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
9.8%
Last ex-div date
2026-09-15