Intrinsiqq
Teck Resources Ltd. logoTeck Resources Ltd.TECK
C$88.12-2.95%
Teck Resources Ltd. logo

Teck Resources Ltd.

TECK

C$88.12

-C$2.68 (-2.95%)

⊜ Compare
ProfitabilityStrong marginsGrowthAcceleratingCash FlowHealthy conversionValuationFairly valued
What stands out

14.32% operating margin is respectable but not wide. ROIC at 2.74%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.

What's changing

Revenue up 18.7% YoY with margins expanding 5.7pp. However, free cash flow softened 476%, worth monitoring whether this is timing or structural.

What deserves caution

Free cash flow declined 476% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -C$583M. The business is consuming cash, not generating it.

Valuation context

18.4x earnings, 22.5x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.

Price History

+46.4%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market CapC$43.32B
EPSC$4.79
P/E18.41
P/FCF22.50
EV/EBITDA8.50
FCF Yield4.4%
Div. Yield0.57%
Net Debt/FCF2.4x
52-Week Range
C$54.65C$99.57

Profitability & Returns

Revenue (TTM)

C$13.99B

▲ +18.7% YoY

Net Income (TTM)

C$2.35B

▲ +278.8% YoY

Op. Margin

26.47%

▲ +5.7pp YoY

ROIC

2.74%

▲ +1.1pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

C$1.93B

▼ -476.1% YoY

Op. Cash Flow (TTM)

C$4.65B

▲ +4.7% YoY

Net Debt

C$4.59B

Cash & Equiv.

C$5.01B

3Y CAGR: -14.7%

Continue Research

Is Teck Resources (TECK) overvalued?

At a P/E of 18.4 and a price-to-free-cash-flow of 22.5, Teck Resources (TECK) trades below a two-stage DCF intrinsic value of about C$188.31 per share, so at C$88.12 the stock looks undervalued (113.7% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Teck Resources scores 31/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.6%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Teck Resources's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about C$188.31 per share for TECK, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around C$141.24. At today's C$88.12, that puts the stock about 113.7% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Teck Resources a high-quality business?+

Teck Resources scores 31 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 26.5% operating margin and a 2.7% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Teck Resources (TECK) pay a dividend, and how much?+

Yes, Teck Resources pays a regular dividend of about C$0.50 per share per year (typically in quarterly installments), a yield of roughly 0.6% at the current price. That is a payout ratio of about 10.5% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For TECK's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Teck Resources a good stock to buy right now?+

That depends on valuation and quality together, not either alone. TECK currently trades below its estimated intrinsic value and scores 31/100 on quality (lower-quality). It also yields about 0.6%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

Related stocks: Copper

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.