Teck Resources Ltd: A Value Investor's Perfect Pick

Tuesday, Aug 12, 2025 11:31 am ET1min read

Value investors may find Teck Resources Ltd (TECK) an attractive pick due to its low P/E ratio of 21.6X, PEG Ratio of 0.5, and Price/Cash Flow ratio of 9.5X. TECK boasts a B Value Style Score and B VGM Score, and has a Zacks Rank of #3 (Hold). Six analysts have revised earnings estimates upwards in the last 60 days, with an average earnings surprise of 45.6%.

Teck Resources Limited, a prominent Canadian mining and mineral development company, has caught the attention of value investors due to its attractive financial metrics. With a low Price-to-Earnings (P/E) ratio of 21.6X, a PEG ratio of 0.5, and a Price/Cash Flow ratio of 9.5X, Teck Resources Limited presents a compelling case for value investors.

The company's operational focus spans steelmaking coal, copper, zinc, and energy, with significant projects like the Quebrada Blanca Phase 2 in Chile aimed at boosting copper production. Teck Resources Limited's diversified resource segments and commitment to sustainability and technological adaptation are key to its strategic framework.

Analysts have shown a bullish sentiment towards Teck Resources Limited, with six analysts revising earnings estimates upwards in the last 60 days, resulting in an average earnings surprise of 45.6%. The company's B Value Style Score and B VGM Score further underscore its value proposition, while its Zacks Rank of #3 (Hold) provides a balanced perspective.

Despite the positive analyst sentiment, Teck Resources Limited's share price has been volatile, with a 12.14% decrease from the prior week as of July 25, 2025. The company's market capitalization stands at $22,122.83 million, with a share price of $45.23. The average one-year price target for Teck Resources Limited is $98.59, with forecasts ranging from $77.61 to $132.58.

Teck Resources Limited's financial health is reflected in its Factor Analysis chart, which shows a Value Score of 81.27, indicating that it is one of the most undervalued companies in the Fintel global investing universe. The company's profitability score of 59.64 and quality score of 51.32 further support its value proposition.

However, investors should also consider Teck Resources Limited's high debt levels, as indicated by its debt-to-equity ratio of 0.81. Additionally, the company's low return on assets (ROA) of 0.01 and return on equity (ROE) of 0.01 suggest that it may be struggling to generate profits from its assets.

In conclusion, Teck Resources Limited presents an attractive value investment opportunity for investors looking for undervalued stocks with strong analyst support. However, investors should carefully evaluate the company's financial health and risks before making an investment decision.

References:
[1] https://fintel.io/s/ca/teck.b

Teck Resources Ltd: A Value Investor's Perfect Pick

Comments



Add a public comment...
No comments

No comments yet