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Teekay Tankers (TNK)
:TNK
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Teekay Tankers
(NYSE:TNK)
Rating:79Outperform
Price Target:
$58.00
â–²(11.37% Upside)
Positive Factors
Financial Stability
Despite lower rates, the company maintains cash flow above its breakeven level, indicating financial stability.
Fleet Acquisition
TNK recently acquired a ‘19-built LR2 vessel and sees opportunity for more purchases.
Market Demand
OPEC+ announced a production boost which provides an uplift for Teekay Tankers by adding significantly more barrels to the market, supporting higher demand.
Negative Factors
Capacity Concerns
Concerns remain about a potential influx of vessels if sanctions on Russia's fleet are lifted, impacting Teekay Tankers negatively.
Market Rates
Declining crude tanker market rates have led to a reduction in earnings estimates for the company.
Sanctions Impact
Teekay Tankers faces concerns from potential tighter US sanctions on crude exports from countries like Iran, Venezuela, and Russia.
Teekay Tankers (TNK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend Yield3.84%
Average Volume (3M)604.56K
Price to Earnings (P/E)6.5
Beta (1Y)0.57
Revenue Growth-21.71%
EPS Growth-37.58%
CountryUS
Employees2,330
SectorEnergy
Sector Strength58
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.41
Shares Outstanding29,900,000
10 Day Avg. Volume590,717
30 Day Avg. Volume604,563
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)0.78
Price to Sales (P/S)1.11
P/FCF Ratio3.45
Enterprise Value/Market Cap0.42
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit2.54
Enterprise Value/Ebitda1.77
Forecast
1Y Price Target
$47.00Price Target Upside-9.75% Downside
Rating ConsensusHold
Number of Analyst Covering2
Teekay Tankers Business Overview & Revenue Model
Company DescriptionTeekay 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 MoneyTeekay Tankers generates revenue primarily through the chartering of its fleet of tankers. The company can earn income through time charters, where vessels are leased for a specific duration at a fixed rate, or spot charters, where vessels are hired for single voyages at market rates. The revenue model is influenced by global oil demand, shipping rates, and freight market fluctuations. Additionally, Teekay Tankers may benefit from operational efficiencies and cost management strategies. Strategic partnerships with oil producers and trading companies enhance its market position, while the cyclical nature of the shipping industry necessitates a focus on fleet utilization and managing operational costs to maximize profitability.
Teekay Tankers Key Performance Indicators (KPIs)
Teekay Tankers Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant cash generation, strategic fleet management, and no debt, which positions the company positively. However, the call highlighted potential challenges due to market volatility and geopolitical uncertainties, which could impact future performance.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Teekay Tankers reported 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 in the second quarter, with strong free cash flow generation of $62.8 million.
Debt-Free and Strong Cash Position
The company has a cash and short-term investment position of $712 million and no debt, providing financial strength and flexibility.
Positive Market Dynamics
Second quarter spot rates were counter seasonally strong with rates outperforming the last two quarters and above long-term averages.
Strategic Fleet Renewal and Sales
Teekay Tankers sold 4 Suezmaxes and 1 LR2 for a total of $158.5 million, expecting a book gain of approximately $46 million. In total, 11 vessels were sold for $340 million, with estimated book gains of $100 million.
Dividend Declaration
Teekay Tankers declared its regular quarterly fixed dividend of $0.25 per share.
Negative Updates
Market Volatility and Geopolitical Uncertainty
The tanker market is expected to exhibit volatility due to geopolitical factors, including OPEC+ production adjustments, EU price caps on Russian crude, and US sanctions on Iranian vessels.
Seasonal Rate Softening
Spot tanker rates softened in line with normal seasonal trends, particularly during the summer months.
Lower Oil Demand Projections
Global oil demand is projected to increase by 0.7 million barrels per day in both 2025 and 2026, lower than initial projections made at the start of the year.
Company Guidance
During the Teekay Group's Second Quarter 2025 earnings call, the company provided a comprehensive overview of its financial performance and strategic initiatives. 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 $62.8 million in free cash flow from operations, ending the quarter with a strong cash position of $712 million and no debt. Teekay Tankers executed fleet renewal strategies by selling 11 vessels for $340 million in gross proceeds, resulting in an estimated book gain of $100 million, while also acquiring modern vessels, including a Suezmax and a 50% ownership stake in a VLCC. The company secured spot rates of $31,400 per day for Suezmax and $28,200 per day for Aframax LR2 fleets, with 43% of the spot base booked. Teekay Tankers anticipates increased oil production in the second half of the year, driven by OPEC+ unwinding supply cuts and higher production from South America, which could support tanker rates. The company also declared a regular quarterly dividend of $0.25 per share and emphasized its strong financial position, with a low free cash flow breakeven of $13,000 per day, enabling continued fleet renewal and value creation.Teekay Tankers Financial Statement Overview
Summary
Teekay Tankers shows strong financial health with high profitability and robust cash management. Despite a recent decline in revenue, the company's low leverage and high equity ratio indicate financial stability.Income Statement
Teekay Tankers shows impressive profitability with a consistent increase in net income and gross profit margins over the years. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 26.6% and a net profit margin of 29.8%, indicating strong control over costs and a high conversion of revenue to profit. However, revenue has decreased in recent periods, suggesting some market challenges.82
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.03 in the TTM, indicating minimal leverage risk. The equity ratio of 90.1% reflects strong financial stability. However, a decrease in total revenue might pose risks in maintaining these healthy metrics if it persists.75
Positive
Cash Flow
Cash flow management appears robust with a positive free cash flow of $318.5 million in the TTM. The operating cash flow to net income ratio of 1.19 indicates efficient conversion of net income into cash. Despite a decline in free cash flow growth rate, the strong cash position supports ongoing operations and strategic investments.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.12B | 1.23B | 1.36B | 1.06B | 542.37M | 886.43M |
| Gross Profit | 298.77M | 394.30M | 572.73M | 290.65M | -58.01M | 251.42M |
| EBITDA | 427.98M | 505.13M | 648.42M | 364.39M | -103.19M | 258.24M |
| Net Income | 334.93M | 403.67M | 513.67M | 229.09M | -242.37M | 87.32M |
Balance Sheet | ||||||
| Total Assets | 2.02B | 1.97B | 1.87B | 1.78B | 1.62B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 695.49M | 534.33M | 365.94M | 180.51M | 50.57M | 97.23M |
| Total Debt | 54.02M | 62.29M | 215.91M | 576.20M | 654.03M | 617.00M |
| Total Liabilities | 199.01M | 217.42M | 391.51M | 713.65M | 780.34M | 761.34M |
| Stockholders Equity | 1.82B | 1.76B | 1.53B | 1.07B | 838.41M | 1.08B |
Cash Flow | ||||||
| Free Cash Flow | 318.50M | 396.57M | 615.87M | 177.84M | -130.89M | 331.92M |
| Operating Cash Flow | 399.88M | 471.91M | 626.07M | 193.26M | -109.44M | 347.94M |
| Investing Cash Flow | 83.92M | -5.11M | 17.26M | 51.22M | 38.14M | 74.52M |
| Financing Cash Flow | -203.89M | -343.40M | -464.75M | -113.05M | 24.08M | -416.10M |
Teekay Tankers Technical Analysis
Positive
52.08
Price Trends
45.03
Positive
44.04
Positive
41.28
Positive
Market Momentum
1.73
Negative
73.92
Negative
91.62
Negative
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 52.08 is above the 20-day moving average (MA) of 46.91, above the 50-day MA of 45.03, and above the 200-day MA of 41.28, indicating a bullish trend. The MACD of 1.73 indicates Negative momentum. The RSI at 73.92 is Negative, neither overbought nor oversold. The STOCH value of 91.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNK.
Teekay Tankers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.71B | 3.85 | 24.68% | 3.02% | -7.25% | 31.85% | |
79 Outperform | $1.80B | 6.47 | 15.78% | 3.84% | -21.71% | -37.58% | |
78 Outperform | $4.93B | 20.72 | 9.93% | 6.05% | -5.33% | -59.96% | |
77 Outperform | $2.31B | 9.73 | 12.61% | 8.55% | -22.01% | -54.34% | |
75 Outperform | $2.00B | 10.53 | 17.90% | 6.26% | -8.89% | 21.28% | |
65 Neutral | $15.01B | 7.39 | 3.39% | 5.33% | 4.10% | -61.80% | |
61 Neutral | $1.75B | 19.76 | 13.89% | 5.76% | 3.74% | -4.49% |
* Energy Sector Average
Performance Comparison
TNK
Teekay Tankers
52.08
0.46
0.89%
DHT
DHT Holdings
12.46
2.86
29.79%
FRO
Frontline
22.15
1.50
7.26%
GLP
Global Partners
51.47
10.97
27.09%
STNG
Scorpio Tankers
53.05
-13.02
-19.71%
INSW
International Seaways
46.79
2.22
4.98%
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.