NYSE:TGP

Stock Analysis Report

Teekay LNG Partners

Executive Summary

Teekay LNG Partners L.P. provides marine transportation services for liquefied natural gas (LNG), liquefied petroleum gas (LPG), and crude oil worldwide.

Rewards


Snowflake Analysis


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Share Price & News

How has Teekay LNG Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TGP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.7%

TGP

0.09%

US Oil and Gas

0.06%

US Market


1 Year Return

-9.5%

TGP

-17.6%

US Oil and Gas

19.3%

US Market

Return vs Industry: TGP exceeded the US Oil and Gas industry which returned -17.6% over the past year.

Return vs Market: TGP underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

TGPIndustryMarket
7 Day-2.7%0.09%0.06%
30 Day-13.7%-6.5%1.7%
90 Day-16.4%-6.3%9.0%
1 Year-4.6%-9.5%-14.4%-17.6%21.8%19.3%
3 Year-24.6%-33.2%-11.4%-19.8%49.5%39.9%
5 Year-56.0%-65.5%-20.5%-32.2%73.1%54.1%

Price Volatility Vs. Market

How volatile is Teekay LNG Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Teekay LNG Partners undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TGP ($12.79) is trading below our estimate of fair value ($49.47)

Significantly Below Fair Value: TGP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TGP is poor value based on its PE Ratio (15.5x) compared to the Oil and Gas industry average (10.2x).

PE vs Market: TGP is good value based on its PE Ratio (15.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TGP is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: TGP is good value based on its PB Ratio (0.7x) compared to the US Oil and Gas industry average (0.8x).

Future Growth

How is Teekay LNG Partners forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

49.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGP's forecast earnings growth (49.3% per year) is above the savings rate (1.7%).

Earnings vs Market: TGP's earnings (49.3% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TGP's revenue is expected to decline over the next 3 years (-2.2% per year).

High Growth Revenue: TGP's revenue is forecast to decline over the next 3 years (-2.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TGP's Return on Equity is forecast to be low in 3 years time (12%).

Past Performance

How has Teekay LNG Partners performed over the past 5 years?

-37.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGP has high quality earnings.

Growing Profit Margin: TGP's current net profit margins (10.8%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: TGP's earnings have declined by -37.9% per year over the past 5 years.

Accelerating Growth: TGP's earnings growth over the past year (79.9%) exceeds its 5-year average (-37.9% per year).

Earnings vs Industry: TGP earnings growth over the past year (79.9%) exceeded the Oil and Gas industry -13.3%.


Return on Equity

High ROE: TGP's Return on Equity (5.7%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Teekay LNG Partners's financial position?


Financial Position Analysis

Short Term Liabilities: TGP's short term assets ($347.2M) do not cover its short term liabilities ($626.7M).

Long Term Liabilities: TGP's short term assets ($347.2M) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: TGP's debt to equity ratio (106.9%) is considered high.

Reducing Debt: TGP's debt to equity ratio has reduced from 128.4% to 106.9% over the past 5 years.

Debt Coverage: TGP's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: TGP's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: TGP has a high level of physical assets or inventory.

Debt Coverage by Assets: TGP's debt is not covered by short term assets (assets are 0.2x debt).

Dividend

What is Teekay LNG Partners's current dividend yield, its reliability and sustainability?

5.94%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.5%forecastin3Years8.5%

Current dividend yield vs market & industry

Notable Dividend: TGP's dividend (5.94%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TGP's dividend (5.94%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: TGP's dividend payments have been volatile in the past 10 years.

Growing Dividend: TGP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86%), TGP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TGP's dividends in 3 years are forecast to be well covered by earnings (41.3% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Mark Kremin (48yo)

3yrs

Tenure

0

Mr. Mark J. Kremin has been the Chief Executive Officer and President of Teekay Gas Group Ltd and Teekkay Gp Llc since February 2017. Mr. Kremin has been the President and CEO at Teekay LNG Partners L.P. s ...


Leadership Team

NamePositionTenureCompensationOwnership
Mark Kremin
President & CEO of Teekay Gas Group Ltd3yrsno datano data
Scott Gayton
Chief Financial Officer of Teekay Gas Group Ltd1.7yrsno datano data
Anne Liversedge
Secretary0.6yrsno datano data

1.7yrs

Average Tenure

Experienced Management: TGP's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
C. Day
Director of Teekay GP LLC15.3yrsno datano data
Alan Semple
Director of Teekay GP LLC0.8yrsno datano data
Kenneth Hvid
Chairman of Teekay GP LLC1.1yrsno datano data
David Schellenberg
Director of Teekay GP LLC0.8yrsno datano data
Sylvia Barnes
Director of Teekay GP LLC0.8yrsno datano data
Richard Paterson
Director of Teekay GP LLC0.8yrsno datano data

0.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: TGP's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Teekay LNG Partners L.P.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teekay LNG Partners L.P.
  • Ticker: TGP
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$991.345m
  • Shares outstanding: 77.51m
  • Website: https://www.teekay.com

Number of Employees


Location

  • Teekay LNG Partners L.P.
  • Belvedere Building
  • 4th Floor
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGPNYSE (New York Stock Exchange)YesCommon UnitsUSUSDMay 2005
THHDB (Deutsche Boerse AG)YesCommon UnitsDEEURMay 2005
TGP NBMV (Bolsa Mexicana de Valores)YesCommon UnitsMXMXNMay 2005

Biography

Teekay LNG Partners L.P. provides marine transportation services for liquefied natural gas (LNG), liquefied petroleum gas (LPG), and crude oil worldwide. The company operates through three segments: The Liquefied Natural Gas, The Liquefied Petroleum Gas, and The Conventional Tanker. It transports liquid petroleum gases, including propane, butane, and ethane; petrochemical gases, such as ethylene, propylene, and butadiene; and ammonia. As of September 30, 2019, it had a fleet of 49 LNG carriers, 29 LPG/multi-gas carriers, and 1 conventional tanker. Teekay GP L.L.C. serves as the general partner of the company. Teekay LNG Partners L.P. was founded in 2004 and is based in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:59
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.