Teekay (TK) AI Stock Analysis

• Market Cap: $782.77M
• Dividend Yield: 21.79%
• Average Volume (3M): 520.68K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.66
• Revenue Growth: -27.22%
• EPS Growth: -34.27%
• Country: US
• Employees: 2,330
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.34
• Shares Outstanding: 85,269,030
• 10 Day Avg. Volume: 579,756
• 30 Day Avg. Volume: 520,678
• PEG Ratio: -0.68
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 1.61
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 3.96
• Enterprise Value/Ebitda: 3.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $10.50 ▲(13.27% Upside)

Teekay's overall stock score reflects a combination of strong valuation, positive technical indicators, and stable financial performance. The company's low P/E ratio and high dividend yield are significant strengths. While the earnings call was generally positive, geopolitical uncertainties and fleet aging are potential risks. The technical analysis supports a bullish outlook, contributing to the favorable score.

Positive Factors

Fleet Renewal Strategy

Investing in modern vessels enhances operational efficiency and competitiveness, supporting long-term growth and market positioning.

Strong Financial Performance

Robust financial performance indicates effective management and operational efficiency, contributing to sustainable profitability and investor confidence.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to navigate market fluctuations and invest in growth opportunities.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can impact long-term financial stability and limit the company's ability to invest in new opportunities and technologies.

Aging Fleet Concerns

An aging fleet may lead to higher maintenance costs and reduced efficiency, affecting competitiveness and operational reliability over time.

Geopolitical Uncertainties

Geopolitical uncertainties can create trade inefficiencies and volatility, posing risks to operational stability and market demand.

Teekay Business Overview & Revenue Model

Company Description

Teekay 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 Money

Teekay generates revenue primarily through its marine transportation and offshore services. The company's revenue model is built around long-term contracts with oil and gas companies, which provide stable cash flows. Key revenue streams include time-charter agreements for its tankers and FPSOs, where clients pay for the use of vessels over a specified period. Additionally, Teekay earns income from spot market transactions, where it charters its vessels on a short-term basis. Significant partnerships with major oil and gas firms, along with strategic joint ventures, enhance its market position and contribute to its earnings. Overall, Teekay's diversified fleet and long-term contracts are crucial to its financial stability.

Teekay Financial Statement Overview

Summary

Teekay's financial performance is stable with strong profitability and efficient operations. Despite challenges in revenue growth and cash flow expansion, the company maintains low leverage and solid margins. Continued focus on revenue growth and cash flow management will be crucial for sustaining financial health.

Income Statement

Teekay's income statement shows a mixed performance. The TTM data indicates a decline in revenue by 8.58%, reflecting challenges in maintaining growth. However, the company maintains healthy margins with a gross profit margin of 29.20% and a net profit margin of 14.28%. The EBIT and EBITDA margins are strong at 26.05% and 34.14%, respectively, indicating efficient operations. Despite the revenue decline, profitability remains robust.

Balance Sheet

The balance sheet reveals a solid equity position with a debt-to-equity ratio of 0.02, showcasing low leverage. The return on equity (ROE) stands at 14.53%, indicating effective use of equity to generate profits. However, the equity ratio is not provided, limiting a full assessment of asset financing. Overall, the balance sheet reflects financial stability with manageable debt levels.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 26.30% in the TTM period, suggesting potential cash flow challenges. However, the operating cash flow to net income ratio is not available, limiting insights into cash flow efficiency. The free cash flow to net income ratio is healthy at 79.89%, indicating good cash conversion. Despite the decline in growth, cash flow remains relatively strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	992.52M	1.22B	1.46B	1.19B	682.51M	1.82B
Gross Profit	279.15M	393.86M	580.63M	293.03M	-49.73M	559.82M
EBITDA	308.75M	503.15M	655.14M	348.67M	-107.93M	201.71M
Net Income	78.90M	133.77M	150.64M	78.41M	7.81M	-82.93M
Balance Sheet
Total Assets	2.25B	2.15B	2.20B	2.16B	6.53B	6.95B
Cash, Cash Equivalents and Short-Term Investments	931.37M	717.77M	652.68M	519.86M	120.99M	129.60M
Total Debt	53.02M	65.55M	227.20M	610.16M	1.02B	997.47M
Total Liabilities	299.58M	217.95M	396.29M	795.24M	4.10B	4.47B
Stockholders Equity	656.66M	709.76M	732.28M	623.46M	515.05M	481.41M
Cash Flow
Free Cash Flow	240.56M	391.84M	619.62M	183.72M	54.54M	957.51M
Operating Cash Flow	306.30M	467.19M	629.82M	199.15M	75.99M	984.02M
Investing Cash Flow	95.21M	157.50M	54.66M	308.98M	7.17M	63.06M
Financing Cash Flow	-267.09M	-416.45M	-520.41M	-456.95M	-223.53M	-1.10B

Teekay Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.27
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TK, the sentiment is Neutral. The current price of 9.27 is below the 20-day moving average (MA) of 9.73, above the 50-day MA of 9.24, and above the 200-day MA of 7.68, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 13.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TK.

Teekay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	79 Outperform	$723.01M	7.39	6.76%	4.69%	-8.52%	-42.05%
FLNG	79 Outperform	$1.36B	14.02	12.79%	11.74%	-3.20%	6.76%
TK	79 Outperform	$782.77M	6.49	―	21.79%	-27.22%	-34.27%
NVGS	79 Outperform	$1.15B	11.65	8.57%	1.26%	2.46%	33.89%
TNK	68 Neutral	$1.85B	5.95	17.02%	3.73%	-20.11%	-26.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Teekay Corporate Events

Teekay Corporation Reports Strong Q3 2025 Financial Results and Fleet Renewal Progress

On October 29, 2025, Teekay Corporation Ltd. reported its financial results for the third quarter of 2025, highlighting a net income of $29.6 million, or $0.34 per share, under U.S. GAAP. The company completed significant fleet renewal activities, including acquiring a Suezmax tanker and the remaining interest in the Hong Kong Spirit VLCC tanker. Additionally, Teekay Tankers completed four out of five planned vessel sales, with total expected proceeds of $158.5 million. A regular quarterly cash dividend of $0.25 per share was declared, payable in November 2025. These developments reflect Teekay’s strategic focus on fleet optimization and shareholder returns, potentially enhancing its market position and financial stability.