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Teekay Tankers
(NYSE:TNK)
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Rating:84Outperform
Price Target:
$91.00
▲(20.04% Upside)
Action:Reiterated
Date:07/31/26
TNK’s score is driven primarily by strong financial performance (exceptional profitability and a very strong, low-leverage balance sheet) and supportive earnings-call signals (record results, strong liquidity and cash generation). Valuation is also favorable with a low P/E and a dividend. The main constraints are shipping-cycle volatility, weaker cash conversion versus earnings, and operational/macro risks highlighted for the near-to-medium term, while technicals are positive but lack momentum-indicator confirmation.
Positive Factors
Balance sheet strength
Extremely low leverage and materially expanded equity provide durable financial flexibility. With a strong capital base and healthy ROE, the company can absorb cyclical downturns, fund fleet renewal from internal sources, sustain dividends, and avoid distress financing during weaker tanker cycles.
Negative Factors
Cyclical revenue and earnings risk
The core tanker business is highly cyclical: freight rates, utilization and revenue can swing materially across quarters and years. Historical declines and intermittent losses show that strong current earnings may not persist, complicating long-term cash flow visibility and dividend predictability.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Extremely low leverage and materially expanded equity provide durable financial flexibility. With a strong capital base and healthy ROE, the company can absorb cyclical downturns, fund fleet renewal from internal sources, sustain dividends, and avoid distress financing during weaker tanker cycles.
Read all positive factors
Teekay Tankers Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down earnings from different business areas, highlighting which segments are driving growth and profitability, and where the company might face challenges.
Breaks down earnings from different business areas, highlighting which segments are driving growth and profitability, and where the company might face challenges.
Data provided by:
The Fly
The FlyTeekay Tankers (TNK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.64B
Dividend Yield2.58%
Average Volume (3M)355.94K
Price to Earnings (P/E)4.5
Beta (1Y)0.66
Revenue Growth19.33%
EPS Growth110.30%
CountryUS
Employees2,130
SectorEnergy
Sector Strength52
IndustryMarine Shipping
Share Statistics
EPS (TTM)17.04
Shares Outstanding30,054,115
10 Day Avg. Volume285,201
30 Day Avg. Volume355,945
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.90
Price to Sales (P/S)1.94
P/FCF Ratio16.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$84.00Price Target Upside10.80% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)16.54
Revenue Forecast (FY)$1.02B
Teekay Tankers Business Overview & Revenue Model
Company Description
Teekay Tankers Ltd. specializes in providing essential marine transportation solutions to the global oil industry, with its operations spanning Bermuda and international waters. The company's service offerings encompass both voyage and time charte...
How the Company Makes Money
Teekay Tankers primarily makes money by operating oil tankers under charter arrangements and earning revenue based on the transportation capacity and time its vessels are employed.
Key revenue streams include:
1) Time-charter revenue: Under time-...
Teekay Tankers Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial position for Teekay Tankers driven by record spot rates, record adjusted earnings, strong free cash flow generation, a debt-free balance sheet and active fleet renewal. These positives are tempered by significant geopolitical disruptions, inventory drawdowns, medium-term fleet supply risk from elevated newbuilding orders and near-term operational impacts (dry-docking, route restrictions). Management emphasized strong liquidity, low cash-flow breakeven and capital allocation flexibility to navigate market volatility.Positive Updates
Record Quarterly Earnings
GAAP net income of $226 million ($6.49 per share) and adjusted net income of $194 million ($5.56 per share) in Q2 2026; adjusted net income was 50% higher than the prior quarter and represents the company's highest-ever quarterly adjusted net income (surpassing Q1 2023).
Negative Updates
Geopolitical Disruptions Increasing Volatility and Risk
Multiple regional disruptions (U.S.–Iran war impacts, resumption of Houthi attacks in the Red Sea, attacks on Russian oil infrastructure/Black Sea) have created heightened operational risk, trade-flow volatility and inefficiencies, and increased the number of areas deemed unsafe for transits or port calls.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Earnings
GAAP net income of $226 million ($6.49 per share) and adjusted net income of $194 million ($5.56 per share) in Q2 2026; adjusted net income was 50% higher than the prior quarter and represents the company's highest-ever quarterly adjusted net income (surpassing Q1 2023).
Read all positive updates
Company Guidance
The company’s guidance and outlook included several concrete metrics: Q2 results showed GAAP net income of $226 million ($6.49/share) and adjusted net income of $194 million ($5.56/share), up 50% sequentially and a company record; Q2 spot rates averaged $109,000/day (Suezmax), $74,100/day (Aframax LR2) and ~ $91,000/day for mid-sized tankers (≈50% above the prior record), and Q2 generated ~ $200 million of free cash flow from operations, leaving cash > $1.2 billion and zero debt at quarter end. For Q3 the company has fixed ~44% of spot days at $105,000/day (Suezmax) and $59,900/day (Aframax LR2), is projecting ~260 off‑hire dry‑dock days, expects OpEx and G&A to decline by about $3 million with slightly lower tax, and declared a regular quarterly dividend of $0.25/share; longer‑term metrics highlighted a free‑cash‑flow breakeven of ~$9,700/day and an annualized H1 FCF run‑rate of $684 million (≈$20/share). The company is continuing fleet renewal—buying two Korean Suezmax newbuilds for $190 million (2027 delivery), selling older tonnage (e.g., a 2009 Suezmax for $53.5 million with a $32.3 million gain and a VLCC for $84.5 million with an expected ~$23 million Q3 gain) after selling nine vessels for $369.5 million (gains $125 million) and acquiring/committing to seven modern vessels for ~ $427 million.Teekay Tankers Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.15B | 951.80M | 1.23B | 1.47B | 1.18B | 542.37M |
| Gross Profit | 494.80M | 261.58M | 394.30M | 581.67M | 305.97M | -58.01M |
| EBITDA | 644.03M | 436.79M | 505.13M | 657.75M | 372.45M | -103.19M |
| Net Income | 592.00M | 351.19M | 403.67M | 519.89M | 235.43M | -242.37M |
Balance Sheet | ||||||
| Total Assets | 2.59B | 2.24B | 1.97B | 1.94B | 1.78B | 1.62B |
| Cash, Cash Equivalents and Short-Term Investments | 1.22B | 853.26M | 534.33M | 391.46M | 180.51M | 50.57M |
| Total Debt | 27.80M | 55.22M | 62.29M | 224.68M | 576.20M | 654.03M |
| Total Liabilities | 216.08M | 198.06M | 217.42M | 391.51M | 713.65M | 780.34M |
| Stockholders Equity | 2.38B | 2.04B | 1.76B | 1.55B | 1.07B | 838.41M |
Cash Flow | ||||||
| Free Cash Flow | 366.92M | 112.64M | 396.57M | 615.87M | 177.84M | -128.76M |
| Operating Cash Flow | 540.13M | 305.89M | 471.91M | 626.07M | 193.26M | -107.31M |
| Investing Cash Flow | -383.54M | 78.34M | -5.11M | 17.26M | 51.22M | 38.14M |
| Financing Cash Flow | -68.81M | -68.53M | -343.40M | -464.75M | -113.05M | 21.95M |
Teekay Tankers Technical Analysis
Positive
75.81
Price Trends
73.05
Positive
73.65
Positive
67.22
Positive
Market Momentum
1.30
Positive
56.13
Neutral
36.55
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 75.81 is above the 20-day moving average (MA) of 75.57, above the 50-day MA of 73.05, and above the 200-day MA of 67.22, indicating a bullish trend. The MACD of 1.30 indicates Positive momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 36.55 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $2.64B | 4.55 | 27.73% | 2.64% | 19.33% | 110.30% | |
82 Outperform | $3.83B | 4.22 | 24.51% | 2.16% | 32.68% | 130.22% | |
81 Outperform | $1.90B | 5.69 | 28.44% | 8.72% | 81.06% | 556.47% | |
80 Outperform | $2.95B | 6.19 | 29.14% | 7.97% | 39.42% | 148.77% | |
78 Outperform | $4.48B | 5.65 | 37.04% | 9.03% | 57.66% | 225.95% | |
75 Outperform | $1.25B | 9.15 | 8.94% | 1.20% | 8.39% | 72.16% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
TNK
Teekay Tankers
77.47
33.79
77.36%
DHT
DHT Holdings
18.20
7.90
76.61%
STNG
Scorpio Tankers
74.19
30.01
67.93%
NVGS
Navigator Holdings
20.03
4.48
28.78%
LPG
Dorian LPG
43.04
15.56
56.61%
INSW
International Seaways
89.06
51.55
137.44%
Teekay Tankers Corporate Events
Teekay Tankers Posts Record Q2 2026 Earnings and Expands Fleet Renewal Plan
Jul 29, 2026
Teekay Tankers reported on July 29, 2026 that it delivered record adjusted net income of $193.6 million, or $5.56 per share, for the quarter ended June 30, 2026, the highest in its history, on GAAP net income of $225.9 million. Revenues surged to ...
Teekay Tankers Nearly Doubles Q1 2026 Profit on Stronger Charter Markets
May 15, 2026
For the quarter ended March 31, 2026, Teekay Tankers reported a sharp rise in total revenues to $286.1 million from $231.6 million a year earlier, driven mainly by higher voyage and time-charter income and new bareboat-charter revenue. The tanker ...
Teekay Tankers Posts Strong Q1 2026 Earnings and Accelerates Fleet Renewal Amid Record Spot Rates
May 13, 2026
On May 13, 2026, Teekay Tankers reported strong results for the quarter ended March 31, 2026, posting GAAP net income of $153.6 million, or $4.42 per share, and adjusted net income of $128.3 million, or $3.69 per share, driven by higher spot tanke...
Teekay Tankers Calls June 16 AGM to Elect Directors and Ratify KPMG as Auditor
May 6, 2026
Teekay Tankers has released its 2026 proxy statement dated May 6, 2026, in connection with its upcoming annual general meeting of shareholders. The filing was submitted to the U.S. Securities and Exchange Commission as a Form 6-K and is incorporat...
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.