Teekay Tankers Ltd (TNK)
NYSE:TNK
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Teekay Tankers
(NYSE:TNK)
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Rating:81Outperform
Price Target:
$73.00
â–²(3.40% Upside)
Action:UpgradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Teekay Tankers (TNK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.45B
Dividend Yield3.72%
Average Volume (3M)628.25K
Price to Earnings (P/E)5.3
Beta (1Y)0.81
Revenue Growth-20.11%
EPS Growth-26.44%
CountryUS
Employees2,330
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.80
Shares Outstanding30,017,860
10 Day Avg. Volume616,344
30 Day Avg. Volume628,252
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 Cap0.68
Enterprise Value/Revenue1.75
Enterprise Value/Gross Profit6.37
Enterprise Value/Ebitda4.12
Forecast
1Y Price Target
$76.50Price Target Upside8.36% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)9.02
Revenue Forecast (FY)$690.00M
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 r...
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 arra...
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 Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive tone: strong quarterly and annual earnings, robust free cash flow generation, a large cash balance and no debt, high spot rates and strong booking metrics, plus active fleet renewal and operational excellence. Noted headwinds include market volatility, an elevated order book (near 10-year high as a % of fleet), and timing uncertainty around fleet replacements and deliveries. Management expects selective, opportunistic fleet additions rather than large M&A given current asset valuations. On balance the highlights materially outweigh the risks discussed.Positive Updates
Strong Quarterly and Annual Earnings
Q4 GAAP net income of $120M ($3.47/share) and adjusted net income of $97M ($2.80/share). Full-year GAAP net income $351M ($10.15/share) and adjusted net income $241M ($6.96/share).
Negative Updates
Market Volatility and Geopolitical Uncertainty
Tanker market remains volatile and influenced by geopolitical events (sanctions, terminal disruptions, regional tensions). Management cautioned that rate spikes tied to such events may be short-lived if flows are not disrupted, adding uncertainty to near-term rate sustainability.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Annual Earnings
Q4 GAAP net income of $120M ($3.47/share) and adjusted net income of $97M ($2.80/share). Full-year GAAP net income $351M ($10.15/share) and adjusted net income $241M ($6.96/share).
Read all positive updates
Company Guidance
Teekay's guidance emphasized returning capital and opportunistic, selective deployment of cash: the board declared the regular dividend of $0.25/share (specials typically decided with the March board and announced with the May release), Q1‑to‑date spot rates secured were ~$79,800/day (VLCC), $56,900/day (Suezmax) and $51,400/day (Aframax LR2) with ~78% VLCC spot days and ~65% midsize spot days, the company holds $853M cash (ex‑$99M escrow) with no debt, has a low FCF breakeven of ~$11,300/day (down from $21,300 in 2022) where each $5,000/day above breakeven generates ~ $55M of annual FCF (~$1.60/share), expects to recognize roughly $45M of vessel‑sale gains in Q1–Q2 2026 (recent grosses included $84.5M VLCC and $73M for two Suezmaxes), plans Q1 D&A of about $21.5–22M and a G&A run‑rate near $46M (or lower), and will continue renewing the fleet via small bolt‑on purchases rather than large M&A.Teekay Tankers Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| 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
Positive
70.60
Price Trends
68.11
Positive
62.64
Positive
55.29
Positive
Market Momentum
0.09
Positive
52.47
Neutral
76.71
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 70.6 is below the 20-day moving average (MA) of 70.68, above the 50-day MA of 68.11, and above the 200-day MA of 55.29, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 76.71 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.83B | 7.23 | 11.30% | 3.19% | -35.37% | -57.86% | |
81 Outperform | $2.45B | 5.26 | 18.37% | 3.72% | -20.11% | -26.44% | |
74 Outperform | $2.87B | 9.29 | 19.30% | 6.12% | -16.45% | 23.94% | |
74 Outperform | $1.42B | 5.49 | 11.41% | 13.08% | -27.21% | -62.22% | |
69 Neutral | $3.46B | 7.74 | 16.02% | 6.12% | -23.59% | -57.70% | |
68 Neutral | $1.26B | 11.65 | 8.19% | 1.27% | 2.46% | 33.89% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
TNK
Teekay Tankers
70.60
33.93
92.51%
DHT
DHT Holdings
17.82
7.79
77.58%
STNG
Scorpio Tankers
73.91
37.04
100.47%
NVGS
Navigator Holdings
19.25
6.05
45.84%
LPG
Dorian LPG
33.33
12.78
62.23%
INSW
International Seaways
70.01
39.66
130.66%
Teekay Tankers Corporate Events
Teekay Tankers Posts Strong 2025 Results and Accelerates Fleet Renewal
Feb 18, 2026
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. A...
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.