Teekay Tankers (TNK)
NYSE:TNK
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Teekay Tankers
(NYSE:TNK)
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Rating:84Outperform
Price Target:
$90.00
â–²(19.54% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial performance (high profitability, low leverage, and positive free cash flow) and very attractive valuation (low P/E with a dividend). Earnings-call guidance supports near-term strength in rates and cash returns, while mixed technical signals and industry/geopolitical cyclicality temper the overall rating.
Positive Factors
De‑risked Balance Sheet
A virtually debt‑free balance sheet and nearly $1 billion of cash give the company durable financial flexibility: it can fund vessel purchases, withstand rate downturns, sustain dividends, and avoid distress financing. Low leverage materially reduces refinancing and interest rate risk over the next several quarters.
Negative Factors
Cyclical Revenue & Cash Volatility
The business remains highly cyclical: top‑line and cash flows can swing sharply with tanker rates and oil trade volumes. That structural volatility means earnings, dividends, and fleet acquisition plans can change materially across 2–6 month horizons, requiring conservative capital allocation even when results are strong.
Read all positive and negative factors
Positive Factors
Negative Factors
De‑risked Balance Sheet
A virtually debt‑free balance sheet and nearly $1 billion of cash give the company durable financial flexibility: it can fund vessel purchases, withstand rate downturns, sustain dividends, and avoid distress financing. Low leverage materially reduces refinancing and interest rate risk over the next several quarters.
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
$2.44B
Dividend Yield3.72%
Average Volume (3M)418.20K
Price to Earnings (P/E)5.7
Beta (1Y)0.65
Revenue Growth-2.29%
EPS Growth31.43%
CountryUS
Employees2,330
SectorEnergy
Sector Strength52
IndustryMarine Shipping
Share Statistics
EPS (TTM)12.36
Shares Outstanding30,017,860
10 Day Avg. Volume416,362
30 Day Avg. Volume418,205
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 Cap0.72
Enterprise Value/Revenue1.74
Enterprise Value/Gross Profit4.98
Enterprise Value/Ebitda3.86
Forecast
1Y Price Target
$80.50Price Target Upside6.92% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)14.74
Revenue Forecast (FY)$896.29M
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 Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasizes strong near-term financial performance, exceptional cash generation, a debt-free balance sheet, attractive spot rates and proactive fleet renewal while also acknowledging significant geopolitical risk, operational dislocations (trapped/idle vessels), elevated secondhand asset prices that slow acquisitions, and structural uncertainties around fleet supply and inventory rebuild timing. Overall, positives (robust earnings, cash, dividends, and market positioning) materially outweigh the risks, though company strategy remains cautious given the market volatility.Positive Updates
Strong GAAP and Adjusted Earnings
Q1 FY26 GAAP net income of $154 million ($4.42 per share) and adjusted net income of $128 million ($3.69 per share), over $30 million better than the prior quarter and 2–3x the results from the same period last year.
Negative Updates
Geopolitical Disruption and Operational Risk
Effective closure of the Strait of Hormuz and Middle East conflict caused major supply disruption; total crude exports from the region fell by approximately 10 million barrels/day vs prewar levels, creating severe market uncertainty and operational risks.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong GAAP and Adjusted Earnings
Q1 FY26 GAAP net income of $154 million ($4.42 per share) and adjusted net income of $128 million ($3.69 per share), over $30 million better than the prior quarter and 2–3x the results from the same period last year.
Read all positive updates
Company Guidance
The company guided to even stronger Q2 results, citing record‑level tanker rates (Q2 spot locks of $142k/day for VLCCs, $122k/day for Suezmaxes and $98k/day for Aframax/LR2s), with ~71% of VLCC spot days booked (and ~88% of the 75 expected VLCC operating days fixed) and ~57% of spot days on average booked for Suezmax and Aframax LR2s; it highlighted Q1 GAAP net income of $154m ($4.42/share) and adjusted net income of $128m ($3.69/share) (both >$30m QoQ and 2–3x YoY), Q1 midsize spot rates ~$61k/day, free cash flow from operations of ~$143m, a cash balance just shy of $1bn with no debt, and dividend actions (regular $0.25/share plus a $1.00/share special); balance‑sheet & fleet metrics included YTD commitments to acquire 5 modern vessels for $332m and sales/agreements on 4 vessels for $211m, agreements to buy 2 Korean resale Suezmax newbuilds for $190m (deliver 2027), sale of a 2009 Suezmax for $53.5m with an expected $32.5m gain in Q2, two Suezmaxes sold for $73m with $22.7m gains in Q1, outcharters at $80k/day (Suezmax, 10–12 months) and $60k/day (Aframax, 12 months), a four‑quarter free cash flow of $380m ($11.14/share, ~30% FCF yield on Q1 25 close), a current FCF breakeven of ~$8.2k/day and an estimate that each $5k/day above breakeven generates ~ $53m (~$1.53/share) of annual free cash flow.Teekay Tankers Financial Statement Overview
Summary
Income Statement
84
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 | 1.01B | 951.80M | 1.23B | 1.47B | 1.18B | 542.37M |
| Gross Profit | 351.02M | 261.58M | 394.30M | 581.67M | 305.97M | -58.01M |
| EBITDA | 452.68M | 301.64M | 505.13M | 657.75M | 372.45M | -103.19M |
| Net Income | 428.70M | 351.19M | 403.67M | 519.89M | 235.43M | -242.37M |
Balance Sheet | ||||||
| Total Assets | 2.39B | 2.24B | 1.97B | 1.94B | 1.78B | 1.62B |
| Cash, Cash Equivalents and Short-Term Investments | 996.15M | 853.26M | 534.33M | 391.46M | 180.51M | 50.57M |
| Total Debt | 33.00M | 55.22M | 62.29M | 224.68M | 576.20M | 654.03M |
| Total Liabilities | 200.61M | 198.06M | 217.42M | 391.51M | 713.65M | 780.34M |
| Stockholders Equity | 2.19B | 2.04B | 1.76B | 1.55B | 1.07B | 838.41M |
Cash Flow | ||||||
| Free Cash Flow | 138.27M | 112.64M | 396.57M | 615.87M | 177.84M | -128.76M |
| Operating Cash Flow | 367.88M | 305.89M | 471.91M | 626.07M | 193.26M | -107.31M |
| Investing Cash Flow | -254.81M | 78.34M | -5.11M | 17.26M | 51.22M | 38.14M |
| Financing Cash Flow | -67.60M | -68.53M | -343.40M | -464.75M | -113.05M | 21.95M |
Teekay Tankers Technical Analysis
Negative
75.29
Price Trends
75.63
Negative
71.18
Negative
62.47
Positive
Market Momentum
-1.00
Positive
34.64
Neutral
8.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNK, the sentiment is Negative. The current price of 75.29 is below the 20-day moving average (MA) of 77.86, below the 50-day MA of 75.63, and above the 200-day MA of 62.47, indicating a neutral trend. The MACD of -1.00 indicates Positive momentum. The RSI at 34.64 is Neutral, neither overbought nor oversold. The STOCH value of 8.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
88 Outperform | $3.86B | 7.00 | 15.85% | 3.19% | -2.77% | 1.00% | |
85 Outperform | $3.82B | 6.99 | 27.13% | 6.12% | 14.50% | 69.57% | |
84 Outperform | $2.44B | 5.70 | 21.40% | 3.72% | -2.29% | 31.43% | |
82 Outperform | $1.72B | 8.85 | 17.91% | 13.08% | 36.27% | 109.57% | |
78 Outperform | $2.63B | 7.93 | 29.14% | 6.12% | 4.66% | 85.89% | |
75 Outperform | $1.34B | 12.98 | 8.94% | 1.27% | -1.33% | 28.23% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
TNK
Teekay Tankers
70.35
26.16
59.22%
DHT
DHT Holdings
16.32
5.80
55.09%
STNG
Scorpio Tankers
74.51
35.96
93.27%
NVGS
Navigator Holdings
21.70
7.74
55.49%
LPG
Dorian LPG
40.22
20.77
106.77%
INSW
International Seaways
77.19
42.87
124.89%
Teekay Tankers Corporate Events
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...
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.