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Teekay Corporation (TK)
:TK
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Teekay
(NYSE:TK)
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Rating:79Outperform
Price Target:
$10.00
â–²(21.36% Upside)
Teekay's overall stock score reflects its strong valuation and positive technical indicators, supported by robust financial performance and strategic initiatives highlighted in the earnings call. The company's low P/E ratio and high dividend yield enhance its attractiveness, while the bullish technical trend suggests continued upward momentum. However, potential risks from geopolitical volatility and overbought technical signals warrant caution.
Teekay (TK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$702.62M
Dividend Yield24.27%
Average Volume (3M)483.64K
Price to Earnings (P/E)5.8
Beta (1Y)0.63
Revenue Growth-26.05%
EPS Growth-44.48%
CountryUS
Employees2,330
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.22
Shares Outstanding85,269,030
10 Day Avg. Volume466,012
30 Day Avg. Volume483,637
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)0.89
Price to Sales (P/S)0.52
P/FCF Ratio1.61
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit3.96
Enterprise Value/Ebitda2.87
Forecast
1Y Price Target
$10.00Price Target Upside21.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Teekay Business Overview & Revenue Model
Company DescriptionTeekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company provides a full suite of ship-to-ship transfer services in the oil, gas, and dry bulk industries; lightering and lightering support; and operational and maintenance marine, as well as offshore production services. As of March 1, 2022, it operated a fleet of approximately 55 vessels. The company primarily serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.
How the Company Makes MoneyTeekay generates revenue primarily through time charters and spot market contracts for its vessels. The company earns income by providing transportation services for crude oil and LNG, where it is compensated based on the duration of the charter agreements or the prevailing market rates. Key revenue streams include long-term charters with major oil companies and ad-hoc contracts for spot market services. Teekay also benefits from strategic partnerships with leading energy firms, which secure a steady demand for its fleet. Additionally, the company has invested in joint ventures and partnerships in the offshore services sector, further diversifying its income sources. Factors such as global oil prices, shipping demand, and regulatory changes in the maritime industry significantly influence Teekay's earnings.
Teekay Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong financial performance and a successful fleet renewal strategy, with positive market outlooks driven by increased oil production. However, there are challenges due to geopolitical factors causing volatility and seasonal softening of rates. The strengths in financial performance and strategic moves outweigh the challenges, indicating a strong position for future growth.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. The company generated approximately $62.8 million in free cash flow from operations with a cash and short-term investment position of $712 million and no debt.
Successful Fleet Renewal Strategy
Teekay Tankers reduced exposure to older vessels and sold 11 vessels for total gross proceeds of $340 million, with estimated book gains on sale of approximately $100 million. The company also acquired 1 modern Suezmax and agreed to acquire the remaining 50% ownership interest in the Hong Kong Spirit VLCC.
Positive Market Outlook
Spot tanker rates improved during the second quarter, and the company secured spot rates of $31,400 per day and $28,200 per day for Suezmax and Aframax LR2 fleets, respectively. There are potential tailwinds for tanker markets towards the end of the year, with global oil production expected to increase sharply.
Dividend Declaration
Declared a regular quarterly fixed dividend of $0.25 per share.
Negative Updates
Volatility Due to Geopolitical Factors
The escalation of hostilities between Israel and Iran caused a brief period of volatility, and several geopolitical factors add complexity to the tanker market outlook, potentially leading to continued volatility.
Seasonal Softening of Rates
Spot rates softened during the remainder of the quarter in line with normal seasonal trends.
Company Guidance
During the Teekay Group's Second Quarter 2025 Earnings Conference Call, the company reported several key metrics and strategic decisions. Teekay Tankers achieved 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 approximately $62.8 million in free cash flow from operations, ending the quarter with no debt and a cash and short-term investments position of $712 million. Teekay Tankers has been actively executing its fleet renewal strategy, selling 11 vessels for total gross proceeds of $340 million and acquiring newer ships, including a modern Suezmax and the remaining 50% ownership in the Hong Kong Spirit VLCC. The company declared a regular quarterly fixed dividend of $0.25 per share and reported spot rates of $31,400 per day for Suezmax and $28,200 per day for Aframax LR2 fleets, with 43% of the spot base secured. Teekay anticipates potential tailwinds for tanker rates in the latter part of the year, driven by increased global oil production and geopolitical factors, while maintaining a disciplined capital allocation strategy focused on fleet renewal and financial strength.Teekay Financial Statement Overview
Summary
Teekay demonstrates a stable financial position with strong profitability and efficient operations. Despite challenges in revenue growth and cash flow expansion, the company maintains low leverage and solid margins. Continued focus on revenue growth and cash flow management will be crucial for sustaining financial health.Income Statement
Teekay's income statement shows a mixed performance. The TTM data indicates a decline in revenue by 8.58%, reflecting challenges in maintaining growth. However, the company maintains healthy margins with a gross profit margin of 29.20% and a net profit margin of 14.28%. The EBIT and EBITDA margins are strong at 26.05% and 34.14%, respectively, indicating efficient operations. Despite the revenue decline, profitability remains robust.72
Positive
Balance Sheet
The balance sheet reveals a solid equity position with a debt-to-equity ratio of 0.02, showcasing low leverage. The return on equity (ROE) stands at 14.53%, indicating effective use of equity to generate profits. However, the equity ratio is not provided, limiting a full assessment of asset financing. Overall, the balance sheet reflects financial stability with manageable debt levels.65
Positive
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by 26.30% in the TTM period, suggesting potential cash flow challenges. However, the operating cash flow to net income ratio is not available, limiting insights into cash flow efficiency. The free cash flow to net income ratio is healthy at 79.89%, indicating good cash conversion. Despite the decline in growth, cash flow remains relatively strong.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 993.69M | 1.22B | 1.46B | 1.19B | 682.51M | 1.82B |
| Gross Profit | 279.20M | 393.86M | 580.63M | 293.03M | -49.73M | 559.82M |
| EBITDA | 385.26M | 503.15M | 655.14M | 348.67M | -107.93M | 201.71M |
| Net Income | 183.96M | 133.77M | 150.64M | 209.64M | -277.46M | 90.98M |
Balance Sheet | ||||||
| Total Assets | 2.06B | 2.15B | 2.20B | 2.16B | 6.53B | 6.95B |
| Cash, Cash Equivalents and Short-Term Investments | 711.87M | 717.77M | 652.68M | 519.86M | 120.99M | 129.60M |
| Total Debt | 40.66M | 65.55M | 227.20M | 610.16M | 1.02B | 997.47M |
| Total Liabilities | 212.18M | 217.95M | 396.29M | 795.24M | 4.10B | 4.47B |
| Stockholders Equity | 1.85B | 709.76M | 732.28M | 623.46M | 515.05M | 481.41M |
Cash Flow | ||||||
| Free Cash Flow | 240.56M | 391.84M | 623.26M | 183.72M | 54.54M | 957.51M |
| Operating Cash Flow | 306.30M | 467.19M | 633.46M | 199.15M | 75.99M | 984.02M |
| Investing Cash Flow | 95.21M | 157.50M | 54.66M | 308.98M | 7.17M | 63.06M |
| Financing Cash Flow | -267.09M | -416.45M | -520.41M | -456.95M | -223.53M | -1.10B |
Teekay Technical Analysis
Positive
8.24
Price Trends
8.05
Positive
7.80
Positive
6.92
Positive
Market Momentum
0.03
Positive
47.27
Neutral
20.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TK, the sentiment is Positive. The current price of 8.24 is below the 20-day moving average (MA) of 8.50, above the 50-day MA of 8.05, and above the 200-day MA of 6.92, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 20.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TK.
Teekay Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $702.62M | 5.77 | 18.55% | 24.27% | -26.05% | -44.48% | |
77 Outperform | $669.13M | 7.95 | 6.31% | 6.75% | -5.32% | -50.38% | |
77 Outperform | $1.36B | 14.01 | 12.50% | 11.67% | -2.98% | -17.51% | |
76 Outperform | $1.78B | 6.39 | 15.78% | 3.89% | -21.71% | -37.58% | |
76 Outperform | $1.09B | 12.50 | 7.39% | 1.27% | 1.19% | 12.56% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
TK
Teekay
8.24
0.96
13.19%
TNK
Teekay Tankers
51.45
-7.93
-13.35%
TEN
Tsakos Energy Navigation
22.21
-2.24
-9.16%
NVGS
Navigator Holdings
15.76
-0.81
-4.89%
MARPS
Marine Petroleum
4.28
0.15
3.63%
FLNG
FLEX LNG
25.36
1.46
6.11%
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.