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Teekay Tankers (TNK)
:TNK
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Teekay Tankers
(NYSE:TNK)
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Rating:76Outperform
Price Target:
$66.00
▲(12.17% Upside)
Teekay Tankers is well-positioned with strong financial performance and strategic fleet management, supported by attractive valuation metrics. Positive technical indicators suggest bullish sentiment, although caution is advised due to potential market volatility and geopolitical risks.
Positive Factors
Fleet Renewal Strategy
The strategic renewal of the fleet, including the sale of older vessels and acquisition of modern ones, positions Teekay Tankers for improved operational efficiency and competitiveness in the long term.
Debt-Free Financial Position
A debt-free balance sheet provides Teekay Tankers with significant financial flexibility and resilience against market fluctuations, supporting sustainable growth and strategic investments.
Strong Cash Generation
Robust cash generation enhances Teekay Tankers' ability to invest in fleet upgrades, distribute dividends, and withstand industry cyclicality, ensuring long-term financial health.
Negative Factors
Declining Revenue Growth
A decline in revenue growth indicates potential challenges in maintaining market share and profitability, which could affect long-term business sustainability if not addressed.
Market Volatility and Geopolitical Uncertainty
Geopolitical uncertainties and market volatility can impact tanker rates and demand, posing risks to Teekay Tankers' revenue stability and strategic planning.
Decline in Free Cash Flow Growth
A significant decline in free cash flow growth could hinder Teekay Tankers' ability to fund operations and investments, impacting long-term financial flexibility and growth potential.
Teekay Tankers (TNK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.03B
Dividend Yield3.32%
Average Volume (3M)495.18K
Price to Earnings (P/E)7.5
Beta (1Y)0.79
Revenue Growth-21.71%
EPS Growth-37.58%
CountryUS
Employees2,330
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.54
Shares Outstanding29,904,577
10 Day Avg. Volume568,534
30 Day Avg. Volume495,181
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 Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$61.33Price Target Upside4.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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:Oct 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
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 profitability and a solid balance sheet with low leverage, positioning it well in the industry. However, recent declines in revenue and free cash flow growth highlight potential challenges in sustaining growth momentum.Income Statement
Teekay Tankers has demonstrated strong profitability with a TTM net profit margin of 27.44% and an EBIT margin of 27.89%, indicating efficient cost management. However, the revenue growth rate has declined by 5.68% in the TTM, reflecting potential challenges in maintaining top-line growth. Historical data shows fluctuating revenue growth, with a significant increase in 2022 but a decline in 2024.75
Positive
Balance Sheet
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.022 in the TTM, showcasing strong financial stability. Return on equity is healthy at 16.20%, indicating effective use of equity capital. The equity ratio is robust, suggesting a strong capital structure. Historical trends show a significant reduction in leverage over recent years.80
Positive
Cash Flow
Operating cash flow remains strong with a coverage ratio of 2.46 in the TTM, but free cash flow growth has declined by 37.99%, indicating potential challenges in generating cash. The free cash flow to net income ratio is moderate at 0.61, suggesting room for improvement in cash conversion efficiency. Historical data shows variability in free cash flow growth.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 1.23B | 1.36B | 1.18B | 542.37M | 886.43M |
| Gross Profit | 243.84M | 394.30M | 572.73M | 305.97M | -58.01M | 251.42M |
| EBITDA | 387.38M | 505.13M | 648.42M | 364.39M | -103.19M | 258.24M |
| Net Income | 290.57M | 403.67M | 513.67M | 229.09M | -242.37M | 87.32M |
Balance Sheet | ||||||
| Total Assets | 2.06B | 1.97B | 1.94B | 1.78B | 1.62B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 730.72M | 534.33M | 365.94M | 180.51M | 50.57M | 97.23M |
| Total Debt | 40.66M | 62.29M | 215.91M | 576.20M | 654.03M | 617.00M |
| Total Liabilities | 212.18M | 217.42M | 391.51M | 713.65M | 780.34M | 761.34M |
| Stockholders Equity | 1.85B | 1.76B | 1.55B | 1.07B | 838.41M | 1.08B |
Cash Flow | ||||||
| Free Cash Flow | 197.50M | 396.57M | 615.87M | 177.84M | -130.89M | 331.92M |
| Operating Cash Flow | 325.94M | 471.91M | 626.07M | 193.26M | -109.44M | 347.94M |
| Investing Cash Flow | 39.11M | -5.11M | 17.26M | 51.22M | 38.14M | 74.52M |
| Financing Cash Flow | -167.91M | -343.40M | -464.75M | -113.05M | 21.95M | -416.10M |
Teekay Tankers Technical Analysis
Positive
58.84
Price Trends
52.42
Positive
48.29
Positive
44.08
Positive
Market Momentum
2.33
Negative
65.02
Neutral
83.99
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 58.84 is above the 20-day moving average (MA) of 53.85, above the 50-day MA of 52.42, and above the 200-day MA of 44.08, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 83.99 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $2.10B | 11.03 | 18.81% | 5.98% | -8.89% | 21.28% | |
| ― | $2.03B | 7.49 | 17.02% | 3.32% | -21.71% | -37.58% | |
| ― | $3.12B | 8.28 | 12.13% | 2.62% | -34.54% | -42.46% | |
| ― | $2.48B | 10.55 | 12.61% | 6.51% | -22.01% | -54.34% | |
| ― | $1.12B | 12.95 | 7.39% | 1.24% | 1.19% | 12.56% | |
| ― | $1.21B | 24.63 | 4.54% | 11.08% | -42.64% | -84.82% | |
| ― | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
TNK
Teekay Tankers
58.84
13.25
29.06%
DHT
DHT Holdings
13.10
3.49
36.32%
STNG
Scorpio Tankers
61.14
4.96
8.83%
NVGS
Navigator Holdings
16.14
0.93
6.11%
LPG
Dorian LPG
28.31
2.33
8.97%
INSW
International Seaways
50.25
10.37
26.00%
Teekay Tankers Corporate Events
Teekay Tankers Reports Decline in Q2 2025 Revenues and Net Income
Aug 1, 2025
Teekay Tankers Ltd. reported its financial results for the quarterly period ended June 30, 2025, showing a decline in total revenues compared to the same period in 2024. The company achieved a net income of $62.6 million for the three months ended June 30, 2025, down from $111.1 million in the previous year. Despite the decrease in revenues and net income, the company managed to maintain profitability, which may impact its market position and stakeholder confidence.
Teekay Tankers Reports Strong Q2 2025 Results Amid Fleet Renewal
Jul 30, 2025
Teekay Tankers Ltd. reported its financial results for the second quarter of 2025, revealing a GAAP net income of $62.6 million and an adjusted net income of $48.7 million. The company continued its fleet renewal strategy by acquiring a 2017-built Suezmax vessel and agreeing to purchase the remaining 50% interest in the Hong Kong Spirit VLCC. Additionally, Teekay Tankers sold five vessels for $158.5 million and declared a cash dividend of $0.25 per share. The financial performance showed an increase in net income from the first quarter of 2025 due to higher spot tanker rates, despite a decrease compared to the second quarter of 2024, attributed to lower average spot tanker rates and fleet changes.
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.