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Teekay Corporation (TK)
NYSE:TK
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Teekay
(NYSE:TK)
Rating:75Outperform
Price Target:
$8.00
â–²(6.10% Upside)
Teekay (TK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$604.14M
Dividend Yield27.66%
Average Volume (3M)792.29K
Price to Earnings (P/E)5.1
Beta (1Y)0.55
Revenue Growth-26.05%
EPS Growth-44.48%
CountryUS
Employees2,330
SectorEnergy
Sector Strength57
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.22
Shares Outstanding83,560,720
10 Day Avg. Volume697,535
30 Day Avg. Volume792,286
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit3.49
Enterprise Value/Ebitda2.98
Forecast
1Y Price Target
$10.00Price Target Upside32.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Teekay Business Overview & Revenue Model
Company DescriptionTeekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company provides a full suite of ship-to-ship transfer services in the oil, gas, and dry bulk industries; lightering and lightering support; and operational and maintenance marine, as well as offshore production services. As of March 1, 2022, it operated a fleet of approximately 55 vessels. The company primarily serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.
How the Company Makes MoneyTeekay Corporation makes money through its diversified operations in the marine energy sector. Its primary revenue streams come from long-term charter contracts for its fleet of LNG carriers, which provide steady and predictable income. Additionally, Teekay generates revenue from its oil tanker operations, which are more exposed to market spot rates, offering the potential for higher earnings during favorable market conditions. The company also benefits from its offshore production services, which include floating production storage and offloading (FPSO) units that support oil and gas extraction activities. Furthermore, Teekay's strategic partnerships and joint ventures enhance its operational capabilities and expand its market reach, contributing to its overall financial performance.
Teekay Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -1.69%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance and successful execution of the fleet renewal strategy. The company is well-positioned to benefit from expected increases in global oil production, which could support tanker rates. However, seasonal rate softening and geopolitical uncertainties present challenges to the market outlook.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Teekay Tankers reported a GAAP net income of $62.6 million or $1.81 per share and adjusted net income of $48.7 million or $1.41 per share for the second quarter. The company generated approximately $62.8 million in free cash flow from operations, with a cash and short-term investment position of $712 million and no debt.
Fleet Renewal Strategy
Teekay Tankers is actively executing on its fleet renewal strategy, including the sale of 11 vessels for total gross proceeds of $340 million and estimated book gains of approximately $100 million. The company is also acquiring newer vessels, such as a modern Suezmax and the remaining 50% interest in the Hong Kong Spirit VLCC.
Positive Market Outlook
Global oil production is expected to increase sharply due to the unwinding of OPEC+ supply cuts and higher production from South America, which could support tanker rates. The company anticipates increased tanker ton-mile demand and potential tailwinds towards the end of the year.
Operational Leverage and Financial Flexibility
With no debt and a low free cash flow breakeven of $13,000 per day, Teekay Tankers generated $128 million in free cash flow in the first half of the year. The company is well-positioned to continue generating free cash flows and investing in fleet renewal.
Negative Updates
Seasonal Rate Softening
Spot tanker rates softened during the latter part of the second quarter due to normal seasonal trends, despite an earlier improvement. The market exhibited volatility due to geopolitical tensions, although there was no material disruption to regional oil production.
Geopolitical Uncertainties
The tanker market outlook is complicated by geopolitical factors, including potential changes in OPEC+ policies, EU price caps on Russian crude, and U.S. sanctions on vessels transporting Iranian crude oil, which could influence spot rates.
Company Guidance
During the Teekay Group's Second Quarter 2025 Earnings Results Conference Call, the company provided guidance highlighting several key metrics. Teekay Tankers reported a GAAP net income of $62.6 million or $1.81 per share and an adjusted net income of $48.7 million or $1.41 per share. The company generated approximately $62.8 million in free cash flow from operations, with a cash and short-term investment position of $712 million and no debt at the end of the quarter. Teekay Tankers has been actively executing its fleet renewal strategy, selling 11 vessels for total gross proceeds of $340 million and estimated book gains of approximately $100 million. It has also acquired a modern Suezmax and agreed to purchase the remaining 50% interest in the Hong Kong Spirit VLCC. Looking ahead, Teekay has secured spot rates of $31,400 per day for Suezmax and $28,200 per day for Aframax LR2, with 43% of its spot base booked. The company sees potential tailwinds in the tanker market later in the year due to increased global oil production and anticipates continued strong cash flow generation with a low free cash flow break-even of $13,000 per day. Additionally, Teekay declared a regular quarterly fixed dividend of $0.25 per share.Teekay Financial Statement Overview
Summary
Teekay demonstrates strong financial management with improved profitability margins and reduced leverage. However, revenue volatility and declining cash flows present potential challenges. The company's strategic debt reduction significantly enhances its financial stability, while strong cost control measures bolster profitability.Income Statement
Teekay's income statement reflects a volatile revenue trajectory with a noticeable decline from 2023 to 2024, where revenue fell from $1.46 billion to $1.22 billion. Despite the revenue drop, the company maintains a strong gross profit margin of 32.3% in 2024, up from 29.5% in 2023, signaling improved cost efficiency. However, net profit margin decreased slightly to 10.96% in 2024 from 10.28% in 2023, indicating challenges in managing operating expenses. The company shows resilience with positive EBIT and EBITDA margins, but revenue volatility poses a risk.72
Positive
Balance Sheet
The balance sheet shows a healthy reduction in total debt from $227 million in 2023 to $65.6 million in 2024, significantly lowering the debt-to-equity ratio to 0.09, enhancing financial stability. The equity ratio remains robust at 32.9% in 2024, indicating a stable capital structure. However, the decrease in stockholders' equity from $732 million in 2023 to $710 million in 2024 suggests potential challenges in generating returns, as reflected in the reduced ROE of 18.84% in 2024 from 20.57% in 2023.68
Positive
Cash Flow
Teekay's cash flow statement shows a strong free cash flow generation of $391.8 million in 2024, despite a reduction from $623 million in 2023. The operating cash flow remains robust at $467 million in 2024, albeit down from $633 million in 2023. The company's ability to convert net income into cash is sound, with an operating cash flow to net income ratio of 3.49 in 2024. The free cash flow to net income ratio also indicates strong cash generation capabilities. Despite these strengths, declining cash flows year-over-year could impact future liquidity.75
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.22B | 1.46B | 1.19B | 682.51M | 1.82B |
| Gross Profit | 393.86M | 580.63M | 293.03M | -49.73M | 559.82M |
| EBITDA | 503.15M | 655.14M | 348.67M | -107.93M | 201.71M |
| Net Income | 133.77M | 150.64M | 209.64M | -277.46M | 90.98M |
Balance Sheet | |||||
| Total Assets | 2.15B | 2.20B | 2.16B | 6.53B | 6.95B |
| Cash, Cash Equivalents and Short-Term Investments | 717.77M | 652.68M | 519.86M | 108.98M | 348.79M |
| Total Debt | 65.55M | 227.20M | 597.39M | 1.01B | 3.82B |
| Total Liabilities | 217.95M | 396.29M | 795.24M | 4.10B | 4.47B |
| Stockholders Equity | 709.76M | 732.28M | 623.46M | 515.05M | 481.41M |
Cash Flow | |||||
| Free Cash Flow | 391.84M | 623.26M | 183.72M | 54.54M | 957.51M |
| Operating Cash Flow | 467.19M | 633.46M | 199.15M | 75.99M | 984.02M |
| Investing Cash Flow | 157.50M | 54.66M | 308.98M | 7.17M | 63.06M |
| Financing Cash Flow | -416.45M | -524.05M | -456.95M | -223.53M | -1.10B |
Teekay Technical Analysis
Negative
7.54
Price Trends
7.58
Negative
6.84
Positive
6.45
Positive
Market Momentum
-0.04
Positive
41.01
Neutral
29.50
Neutral
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 7.54 is below the 20-day moving average (MA) of 7.62, below the 50-day MA of 7.58, and above the 200-day MA of 6.45, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 29.50 is Neutral, 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.07B | 12.17 | 7.38% | 1.29% | 6.38% | 9.47% | |
77 Outperform | $585.98M | 4.33 | 9.22% | 7.71% | -3.67% | -8.90% | |
76 Outperform | $1.47B | 5.29 | 15.78% | 4.69% | -21.71% | -37.58% | |
75 Outperform | $604.14M | 5.06 | 18.55% | 27.66% | -26.05% | -44.48% | |
72 Outperform | $1.33B | 13.08 | 12.69% | 12.00% | -3.95% | -2.25% | |
71 Outperform | $128.22M | 2.57 | 10.57% | 4.19% | -2.37% | 32.03% | |
67 Neutral | $15.01B | 9.77 | 7.81% | 5.64% | 4.51% | -61.80% |
* Energy Sector Average
Performance Comparison
TK
Teekay
7.54
1.88
33.22%
TNK
Teekay Tankers
45.14
-9.02
-16.65%
TEN
Tsakos Energy Navigation
20.05
-2.13
-9.60%
NVGS
Navigator Holdings
15.70
0.43
2.82%
DLNG
Dynagas LNG Partners
3.54
-0.10
-2.75%
FLNG
FLEX LNG
25.36
2.97
13.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.