Teekay Tankers (TNK) AI Stock Analysis

• Market Cap: $2.36B
• Dividend Yield: 3.72%
• Average Volume (3M): 569.19K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.84
• Revenue Growth: -20.11%
• EPS Growth: -26.44%
• Country: US
• Employees: 2,330
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 2.80
• Shares Outstanding: 30,017,860
• 10 Day Avg. Volume: 561,316
• 30 Day Avg. Volume: 569,189
• PEG Ratio: -0.40
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 16.41
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 6.09
• Enterprise Value/Ebitda: 3.93
• 1Y Price Target: $76.50
• Price Target Upside: 12.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 9.02
• Revenue Forecast (FY): $690.00M

• Rating: 81 Outperform
• Price Target: $73.00 ▲(7.24% Upside)
• Action: Upgraded Date: 02/20/26
• Date: Action: Upgraded 02/20/26

Score is driven mainly by strong financial resilience (no/low leverage, high profitability) and supportive earnings-call fundamentals (large cash position, low breakeven, strong bookings). Valuation is also attractive with a low P/E and a moderate dividend yield. The primary offsets are cyclical pressure signs (recent revenue decline and cash-flow normalization) and near-term technical overheating (very high RSI/Stoch).

Positive Factors

Low leverage & strong liquidity

Teekay's extremely low leverage and ~$853M cash with no debt create a durable capital cushion. This structural strength reduces refinancing and solvency risk, permits steady dividend policy and opportunistic small fleet buys, and shields the firm across freight-cycle downturns.

Sustained high profitability

Elevated margins in 2025 indicate strong profitability when rates are favorable, supporting reliable cash generation. Persistent high margins improve ability to fund capex, dividends, and fleet renewal, providing a durable earnings buffer relative to peers in the tanker cycle.

Low FCF breakeven & high operating leverage

A low free-cash-flow breakeven materially reduces the revenue level needed to be cash-positive, so modest improvements in spot rates generate outsized FCF. This structural operating leverage supports resilient cash returns and gives the company flexibility to capitalize on upcycles.

Negative Factors

Top-line contraction

Recent revenue declines show the business remains cyclical and rate-dependent. Sustained top-line pressure would limit FCF growth and force reliance on asset sales or temporary rate spikes to meet returns, increasing medium-term cash-generation uncertainty and planning difficulty.

Elevated industry supply risk

A large order book implies substantial deliveries in 2026–2027 that can depress freight rates industry-wide. Increased supply risk threatens utilization and margins over multiple quarters, making rate recovery and sustained earnings less certain despite company-level strengths.

Reliance on sanction-driven demand

A meaningful share of recent demand gains stems from re-routed sanctioned cargoes. If geopolitical dynamics or sanction regimes shift, that temporary demand support could vanish, amplifying structural earnings volatility and complicating predictable multi-quarter cashflow planning.

Teekay Tankers Business Overview & Revenue Model

Company Description

Teekay Tankers Ltd. provides marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; and offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products, as well as liquid gases and various other products. It also provides tanker commercial and technical management services. As of December 31, 2021, the company owned and leased 48 double-hull oil tankers, time-chartered in two Aframax tankers, and one LR2 tanker. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Canada.

How the Company Makes Money

Teekay Tankers makes money primarily by earning charter revenues from operating its tanker fleet. Key revenue streams include: (1) Spot market and spot-related earnings: The company can employ vessels in the spot market (including via pooling arrangements), where revenue is driven by prevailing tanker freight rates and vessel utilization; earnings fluctuate with global oil trade flows, tanker supply/demand balance, and seasonal conditions. (2) Time-charter revenues: The company can lease vessels to customers on time charters for a fixed daily rate over a defined period; this typically provides more predictable cash flows than spot exposure, while the charterer generally pays for the vessel’s use and the company operates and maintains the ship under the contract terms. (3) Contract structure and pass-through items: Depending on charter type, certain voyage-related costs (e.g., fuel/bunkers, port charges) may be paid by the charterer (common in time charters) or borne by the company and netted against voyage revenues (more common in voyage/spot employment), affecting how gross revenue translates into operating income. Beyond charter hire, results are influenced by fleet operating expenses (crew, repairs and maintenance, insurance), vessel off-hire days, dry-docking schedules, and financing costs. The company may also generate proceeds from asset sales when it sells vessels; if present, these gains/losses can materially impact earnings in a given period. Specific significant partnerships or counterparties are not publicly identifiable here at a granular level; if the company participates in any named tanker pools or specific commercial management agreements, details are not available in this response and should be treated as null.

Teekay Tankers Financial Statement Overview

Summary

Strong overall fundamentals led by a very low-leverage balance sheet (2025 debt-to-equity ~0.03) and sustained high profitability (2025 net margin ~37%). Offsetting factors are contracting revenue in 2024–2025, margin normalization from 2023 peaks, and weaker cash conversion in 2025 versus 2024, consistent with cyclical earnings risk.

Income Statement

Profitability is strong in the last several years, with net margins remaining very high in 2023–2025 (2025: ~37%) and solid operating profitability (2025 EBIT margin ~23%). However, the top line has been contracting recently (revenue down ~9% in 2025 after a modest decline in 2024), and margins have compressed from the 2023 peak, suggesting earnings are likely sensitive to a softer rate environment. The earlier cycle downturn is also evident (large loss in 2021), highlighting volatility.

Balance Sheet

The balance sheet is a clear strength: leverage has been dramatically reduced from 2021–2022 levels to very low debt relative to equity by 2024–2025 (2025 debt-to-equity ~0.03). Equity has grown meaningfully, supporting a strong capital cushion, and returns on equity remain healthy (2025 ~17%) though down from 2023–2024, consistent with normalization in profitability. Overall financial risk from debt appears limited.

Cash Flow

Cash generation remains positive, with operating cash flow solid in 2025 (~$306M) and free cash flow positive (~$113M) with growth in 2025 (~13%). That said, cash flow has cooled from the exceptionally strong 2023–2024 period (notably lower free cash flow in 2025 versus 2024), and free cash flow is a smaller share of net income in 2025 (about 37%), implying weaker cash conversion than the prior two years. The business also showed vulnerability in 2021 when operating and free cash flow were negative.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	951.80M	1.23B	1.47B	1.18B	542.37M
Gross Profit	261.58M	394.30M	581.67M	305.97M	-58.01M
EBITDA	301.64M	505.13M	657.75M	372.45M	-103.19M
Net Income	351.19M	403.67M	519.89M	235.43M	-242.37M
Balance Sheet
Total Assets	2.24B	1.97B	1.94B	1.78B	1.62B
Cash, Cash Equivalents and Short-Term Investments	853.26M	534.33M	391.46M	180.51M	50.57M
Total Debt	55.22M	62.29M	224.68M	576.20M	654.03M
Total Liabilities	198.06M	217.42M	391.51M	713.65M	780.34M
Stockholders Equity	2.04B	1.76B	1.55B	1.07B	838.41M
Cash Flow
Free Cash Flow	112.64M	396.57M	615.87M	177.84M	-128.76M
Operating Cash Flow	305.89M	471.91M	626.07M	193.26M	-107.31M
Investing Cash Flow	78.34M	-5.11M	17.26M	51.22M	38.14M
Financing Cash Flow	-68.53M	-343.40M	-464.75M	-113.05M	21.95M

Teekay Tankers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNK, the sentiment is Positive. The current price of 68.07 is below the 20-day moving average (MA) of 71.61, above the 50-day MA of 67.02, and above the 200-day MA of 54.64, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 23.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNK.

Teekay Tankers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STNG	82 Outperform	$3.58B	7.23	11.30%	3.19%	-35.37%	-57.86%
TNK	81 Outperform	$2.36B	5.26	18.37%	3.72%	-20.11%	-26.44%
LPG	76 Outperform	$1.44B	5.49	11.41%	13.08%	-27.21%	-62.22%
DHT	74 Outperform	$2.87B	9.29	19.30%	6.12%	-16.45%	23.94%
INSW	69 Neutral	$3.54B	7.74	16.02%	6.12%	-23.59%	-57.70%
NVGS	68 Neutral	$1.25B	11.65	8.19%	1.27%	2.46%	33.89%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Teekay Tankers Corporate Events

Teekay Tankers Posts Strong 2025 Results and Accelerates Fleet Renewal

Teekay Tankers reported strong financial results for the fourth quarter and full year 2025 on February 18, 2026, posting GAAP net income of $120.5 million, or $3.47 per share, in the quarter and $351.2 million, or $10.15 per share, for the year. Adjusted net income reached $97.0 million in the fourth quarter and $240.8 million for 2025, supported by robust spot tanker rates and enhanced by the retroactive consolidation of its acquired Australian operations under common control accounting.

Operationally, the company continued its fleet renewal strategy by purchasing three 2016-built Aframax tankers for $141.5 million, which are bareboat chartered back on short‑term contracts into 2026, while selling or agreeing to sell three older Suezmax and VLCC vessels for $157.5 million in gross proceeds. Teekay Tankers also strengthened its balance sheet, growing cash and short‑term investments to $853.3 million by year‑end 2025, and declared a cash dividend of $0.25 per share for the quarter ended December 31, 2025, underscoring its improved earnings power and shareholder returns amid firming spot market conditions into early 2026.

The most recent analyst rating on (TNK) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Teekay Tankers stock, see the TNK Stock Forecast page.