Teekay Tankers (TNK) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: 3.74%
• Average Volume (3M): 606.21K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.56
• Revenue Growth: -21.71%
• EPS Growth: -37.58%
• Country: US
• Employees: 2,330
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.41
• Shares Outstanding: 29,900,000
• 10 Day Avg. Volume: 601,811
• 30 Day Avg. Volume: 606,211
• PEG Ratio: -0.15
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 3.45
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 1.77
• 1Y Price Target: $47.00
• Price Target Upside: -14.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $63.00 ▲(15.13% Upside)

Teekay Tankers' strong financial performance and attractive valuation are the most significant factors supporting the stock score. The company's robust cash management and strategic fleet renewal efforts further enhance its position. However, technical indicators suggest caution due to overbought conditions, and potential market volatility and geopolitical risks could pose challenges.

Positive Factors

Strong Cash Position

A robust cash position with no debt provides Teekay Tankers with significant financial flexibility, allowing for strategic investments and resilience against market fluctuations.

Strategic Fleet Renewal

The strategic renewal of the fleet enhances operational efficiency and competitiveness, positioning the company to capitalize on favorable market conditions and improve long-term profitability.

High Profit Margins

Strong profit margins indicate effective cost management and a high conversion of revenue into profit, which supports sustainable financial performance and shareholder value.

Negative Factors

Revenue Decline

A decline in revenue can impact the company's ability to maintain its financial health and market position, especially if it persists over the long term.

Market Volatility

Geopolitical uncertainties and market volatility can lead to unpredictable revenue streams and operational challenges, potentially affecting long-term strategic planning and profitability.

Lower Oil Demand Projections

Lower than expected oil demand growth can reduce shipping opportunities and pressure freight rates, impacting revenue potential and strategic growth initiatives.

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 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 Money

Teekay 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 54.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 54.72 is above the 20-day moving average (MA) of 51.36, above the 50-day MA of 47.11, and above the 200-day MA of 41.93, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 61.49 is Neutral, neither overbought nor oversold. The STOCH value of 64.99 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STNG	81 Outperform	3.00B	7.96	23.34%	2.72%	-34.54%	-42.46%
FRO	78 Outperform	5.17B	22.33	21.17%	4.65%	-5.33%	-59.96%
INSW	77 Outperform	2.35B	10.15	12.57%	6.87%	-22.01%	-54.34%
TNK	76 Outperform	$1.85B	6.79	15.78%	3.74%	-21.71%	-37.58%
DHT	75 Outperform	2.01B	10.82	17.48%	6.24%	-8.89%	21.28%
GLP	60 Neutral	1.67B	19.52	15.97%	6.02%	3.74%	-4.49%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Teekay Tankers Corporate Events

Teekay Tankers Reports Decline in Q2 2025 Revenues and Net Income

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

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.