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Teekay Corporation (TK)
NYSE:TK
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Teekay
(NYSE:TK)
76Outperform
Teekay (TK) vs. S&P 500 (SPY)
Market Cap
$521.17M
Dividend YieldN/A
Average Volume (3M)626.01K
Price to Earnings (P/E)4.3
Beta (1Y)0.21
Revenue Growth-14.23%
EPS Growth-2.44%
CountryUS
Employees2,300
SectorEnergy
Sector Strength76
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.43
Shares Outstanding84,059,950
10 Day Avg. Volume676,214
30 Day Avg. Volume626,010
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.39
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Teekay Business Overview & Revenue Model
Company DescriptionTeekay Corp. is an investment holding company, which engages in the provision of international crude oil and gas marine transportation services. It also provides offer offshore oil production, storage, and offloading services, under long-term and fixed-rate contracts. It operates through the following segments: Teekay LNG; Teekay Tankers; Teekay Parent; Teekay Offshore; and Eliminations and Other. The Teekay LNG segment comprises of the liquefied natural gas and liquefied petroleum gas carriers. The Teekay Tankers segment offers conventional crude oil tankers and product carriers. The Teekay Parent owns floating production, storage, and offloading (FPSO) units and a minority investment in Tanker Investments Ltd. The Teekay Offshore segment includes shuttle tanker operations; FSPO units; floating storage and offloading (FSO) units; and offshore support. The company was founded by Jens Torben Karlshoej in 1973 and is headquartered in Hamilton, Bermuda.
How the Company Makes MoneyTeekay Corporation generates revenue primarily through its diverse fleet of vessels that transport crude oil and liquefied natural gas. The company's revenue model is anchored in long-term charter contracts with major oil and gas companies, ensuring stable cash flow and reducing exposure to spot market volatility. Key revenue streams include time-charter contracts for its conventional tankers, LNG carriers, and FPSO units, which provide predictable income based on fixed daily rates. Additionally, Teekay earns revenue through its shuttle tanker operations, where it offers specialized services in transporting oil from offshore fields to shore. Significant partnerships with energy majors and strategic alliances also contribute to its earnings by securing long-term commitments and operational efficiencies. Furthermore, Teekay's involvement in joint ventures and partnerships in the LNG sector enhances its revenue potential by expanding its market reach and capabilities.
Teekay Financial Statement Overview
Summary
Teekay demonstrates a solid financial position with strong profitability and operational efficiency. The balance sheet is healthy with low leverage and strong equity, while cash flows are substantial despite recent declines. Key risks include revenue fluctuations and recent drops in free cash flow, but the overall outlook remains positive.Income Statement
Teekay's income statement shows strong recovery and growth trends. The gross profit margin for TTM improved to 34.72% from previous years, reflecting better cost management. The net profit margin stands at 11.04% for TTM, showing profitability. Revenue growth was positive, although there was a decline from 2023 to TTM. EBIT and EBITDA margins are also robust at 30.05% and 37.39% respectively, indicating strong operational efficiency. The overall trajectory is positive, but revenue volatility could be a risk.75
Positive
Balance Sheet
Teekay's balance sheet reflects a strong equity position with an equity ratio of 36.00% in TTM, indicating financial stability. The debt-to-equity ratio is low at 0.08, which reduces financial risk. Return on equity for TTM is 17.89%, demonstrating good returns to shareholders. The balance sheet shows a solid foundation with manageable liabilities and increasing stockholder equity, which supports long-term growth prospects.80
Positive
Cash Flow
The cash flow statement indicates a healthy cash flow generation with a free cash flow to net income ratio of 3.28 in TTM, underscoring strong cash conversion. Free cash flow growth from 2023 to TTM is -24.29%, pointing to a decline that needs monitoring. However, the operating cash flow to net income ratio is 3.78, showing strong operational cash generation. Overall, cash flows are robust but have shown recent drops that necessitate attention.78
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.30B | 1.46B | 1.19B | 682.51M | 1.82B | 1.92B | Gross Profit |
| 452.40M | 580.63M | 293.03M | -49.73M | 559.82M | 466.62M | EBIT |
| 391.55M | 531.73M | 245.77M | -185.35M | 593.15M | 363.98M | EBITDA |
| 487.28M | 655.14M | 348.67M | -107.93M | 201.71M | 654.65M | Net Income Common Stockholders |
| 143.91M | 150.64M | 209.64M | -277.46M | 90.98M | -148.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 410.72M | 652.68M | 519.86M | 108.98M | 348.79M | 353.24M | Total Assets |
| 8.48B | 2.20B | 2.16B | 6.53B | 6.95B | 8.08B | Total Debt |
| 5.24B | 227.20M | 597.39M | 1.01B | 3.82B | 4.85B | Net Debt |
| 4.83B | -252.88M | 287.53M | 896.24M | 3.47B | 4.50B | Total Liabilities |
| 5.73B | 396.29M | 795.24M | 4.10B | 4.47B | 5.51B | Stockholders Equity |
| 715.59M | 732.28M | 623.46M | 515.05M | 481.41M | 481.86M |
| Cash Flow | Free Cash Flow | ||||
| 471.99M | 623.26M | 183.72M | 54.54M | 957.51M | 273.78M | Operating Cash Flow |
| 544.21M | 633.46M | 199.15M | 75.99M | 984.02M | 383.31M | Investing Cash Flow |
| 13.15M | 54.66M | 308.98M | 7.17M | 63.06M | -50.39M | Financing Cash Flow |
| -281.75M | -524.05M | -456.95M | -223.53M | -1.10B | -382.23M |
Teekay Technical Analysis
Negative
6.21
Price Trends
6.97
Negative
6.84
Negative
7.18
Negative
Market Momentum
-0.20
Positive
35.31
Neutral
14.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TK, the sentiment is Negative. The current price of 6.21 is below the 20-day moving average (MA) of 6.65, below the 50-day MA of 6.97, and below the 200-day MA of 7.18, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 35.31 is Neutral, neither overbought nor oversold. The STOCH value of 14.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TK.
Teekay Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $521.17M | 4.35 | 18.55% | ― | -14.23% | -2.44% | |
73 Outperform | $1.90B | 2.90 | 24.68% | 4.20% | -8.16% | 15.26% | |
73 Outperform | $1.65B | 9.07 | 17.56% | 9.26% | 2.11% | 13.10% | |
71 Outperform | $385.94M | 3.12 | 21.87% | 9.96% | 46.10% | ― | |
70 Outperform | $514.55M | 10.90 | 8.91% | 16.19% | -9.60% | -46.39% | |
63 Neutral | $1.62B | 3.92 | 23.33% | 17.56% | -11.21% | -25.50% | |
57 Neutral | $8.41B | 5.66 | -3.93% | 7.40% | 0.23% | -69.17% |
* Energy Sector Average
Performance Comparison
TK
Teekay
6.26
-0.06
-0.95%
DHT
DHT Holdings
10.29
0.04
0.39%
NAT
Nordic American Tanker
2.46
-1.09
-30.70%
STNG
Scorpio Tankers
38.76
-31.14
-44.55%
ASC
Ardmore Shipping
9.85
-5.97
-37.74%
INSW
International Seaways
32.98
-14.83
-31.02%
Teekay Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -10.78% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strong financial performance and strategic fleet management highlighted, while facing challenges such as softer spot rates and geopolitical uncertainties. Despite these challenges, the company remains optimistic about its strategic investments and dividend declarations.Highlights
Strong Financial Performance
Teekay Tankers reported adjusted net income of $52 million for the fourth quarter and $355 million for the full year 2024. The company generated $69 million in free cash flow in the fourth quarter and $415 million for the year.
Fleet Management Success
Teekay Tankers sold five vessels for a total of $160 million, resulting in expected book gains of nearly $60 million. They've also signed an MOA to acquire a Martin LR2 tanker, expected to close in the second quarter.
Strategic Investments
Teekay made a passive investment in Ardmore Shipping Corporation, owning 5.1% of the company, suggesting confidence in the product sector.
Dividend Declaration
Teekay Tankers declared a quarterly fixed dividend of $0.25 per share, with a total of $3 per share paid for the full year.
Lowlights
Softer Spot Rates
Spot rates booked to date are slightly below fourth quarter levels, although they remain above the fleet's free cash flow breakeven levels.
Geopolitical Uncertainty
Potential impacts from geopolitical events, such as conflicts in Ukraine and the Middle East, and changes in sanctions, create uncertainty in the market.
Impact of Sanctions
The imposition of additional US sanctions on 153 tankers servicing the Russian oil trade has increased rate volatility.
Pressure on Spot Rates
Despite some positive trends, the Aframax and Suezmax spot rates experienced pressure near the term, influenced by market overhang and geopolitical events.
Company Guidance
During the Teekay Group's Fourth Quarter 2024 Earnings Conference Call, several key metrics and strategic moves were highlighted. Teekay Tankers reported an adjusted net income of $52 million, or $1.50 per share for Q4, and $355 million, or $10.31 per share for the entire year. The company generated $69 million in free cash flow in Q4 and $415 million annually. As part of its fleet management strategy, Teekay Tankers sold five vessels for $160 million, expecting book gains of nearly $60 million, and announced the acquisition of a Martin LR2 tanker, expected to close in Q2. Additionally, Teekay Tankers declared a quarterly fixed dividend of $0.25 per share, totaling $3 per share over the year. Despite softer spot rates, the company's free cash flow breakeven rate is approximately $14,300 per day, allowing it to remain profitable. The company also made a passive investment in Ardmore Shipping Corporation, acquiring a 5.1% stake. Looking ahead, Teekay anticipates potential market volatility due to geopolitical factors, including US sanctions on Russian, Iranian, and Venezuelan oil exports, as well as potential peace agreements in conflict regions, which could impact tanker demand and trade patterns.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.