China plays a defining role for Teck Resources as the biggest buyer of everything the company digs out of the ground: copper, zinc, and lead. With the exception of lead, demand for these commodities is tied to fixed-asset investment. We expect a rebalancing of China's economy from investment to household consumption will mean weaker demand growth for investment-oriented commodities and lower prices.
Teck is materially increasing its copper production to take advantage of increased demand due to trends including decarbonization and electrification.
The sale of its metallurgical coal business in mid-2024 means Teck is less diversified by commodity, with copper representing the vast majority of midcycle EBITDA.
|
Metric
|
TECK.B
|
BHP
|
RIO
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.97 | 14.68 | 14.17 |
Price/Book Value | 1.65 | 4.37 | 2.82 |
Price/Sales | 3.25 | 3.67 | 2.96 |
Price/Cash Flow | 9.67 | 9.19 | 8.88 |
|
Metric
|
TECK.B
|
BHP
|
RIO
|
|---|---|---|---|
Quick Ratio | 2.18 | 1.44 | 0.93 |
Current Ratio | 3.12 | 1.88 | 1.42 |
Interest Coverage | 6.54 | 11.36 | 10.65 |
|
Metric
|
TECK.B
|
BHP
|
RIO
|
|---|---|---|---|
Return on Assets (Normalized) | 6.26% | 11.44% | 10.13% |
Return on Equity (Normalized) | 11.11% | 27.20% | 20.84% |
Return on Invested Capital (Normalized) | 9.10% | 17.58% | 15.78% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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SCCO
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| Antofagasta PLC
ANFGF
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| Teck Resources Ltd Ordinary Shares - Class A (New)
TCKRF
| — | LOCK|y^? | $32B | |||
| Teck Resources Ltd Class B (Sub Voting)
TECK
| LOCK|XPYzSn& | LOCK|>$ | $32B | |||
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LNDMY
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United States