NYSE:TK

Stock Analysis Report

Executive Summary

Teekay Corporation provides crude oil and gas marine transportation; offshore oil production; and storage and offloading services in Bermuda and internationally.

Risk Analysis

Earnings have declined by -33.8% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.1%

TK

1.7%

US Oil and Gas

0.3%

US Market


1 Year Return

14.0%

TK

-10.0%

US Oil and Gas

18.5%

US Market

Return vs Industry: TK exceeded the US Oil and Gas industry which returned -10% over the past year.

Return vs Market: TK underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

TKIndustryMarket
7 Day-2.1%1.7%0.3%
30 Day-6.0%-2.6%1.5%
90 Day17.5%-1.6%5.7%
1 Year15.8%14.0%-6.7%-10.0%21.1%18.5%
3 Year-40.5%-44.5%-12.3%-20.3%45.9%36.4%
5 Year-88.1%-89.6%-7.3%-21.1%71.4%52.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.02x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TK is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: TK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TK is overvalued based on its PB Ratio (1x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Teekay forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.5%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Teekay has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Teekay performed over the past 5 years?

-33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TK is currently unprofitable.

Growing Profit Margin: TK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TK is unprofitable, and losses have increased over the past 5 years at a rate of -33.8% per year.

Accelerating Growth: Unable to compare TK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TK is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-15.6%).


Return on Equity

High ROE: TK has a negative Return on Equity (-11.35%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Teekay's financial position?


Financial Position Analysis

Short Term Liabilities: TK's short term assets ($774.2M) do not cover its short term liabilities ($1.1B).

Long Term Liabilities: TK's short term assets ($774.2M) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: TK's debt to equity ratio (120.6%) is considered high.

Reducing Debt: TK's debt to equity ratio has reduced from 222.5% to 120.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TK's debt is not covered by short term assets (assets are 0.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TK is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -18.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TK is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Teekay's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Kenneth Hvid (51yo)

2.8yrs

Tenure

0

Mr. Kenneth Hvid serves as Chairman of the Board at Teekay Tankers Ltd. since June 12, 2019. He has been a Director of Teekay Tankers Ltd. since February 22, 2017 and Teekay Corporation since June 10, 2019 ...


Management Age and Tenure

3.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: TK's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: TK's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 4.6%.


Management Team

  • Peter Evensen (60yo)

    • Tenure: 2.9yrs
  • Art Bensler (61yo)

    Executive VP

    • Tenure: 21.3yrs
  • Vince Lok (51yo)

    Executive VP & CFO

    • Tenure: 12.9yrs
  • Kenneth Hvid (51yo)

    President

    • Tenure: 2.8yrs
  • Mark Kremin (48yo)

    President & CEO of Teekay Gas Group Ltd

    • Tenure: 2.8yrs
  • Ingvild Sæther (50yo)

    President & CEO of Teekay Offshore Group Ltd

    • Tenure: 2.8yrs
  • Kevin Mackay (50yo)

    President & CEO of Teekay Tankers Ltd

    • Tenure: 5.5yrs
  • William Hung (47yo)

    Executive Vice President of Strategic Development

    • Tenure: 3.8yrs
  • Ryan Hamilton

    Manager of Finance & Investor Relations

    • Tenure: 0yrs
  • Lee Edwards

    Financial Analyst

    • Tenure: 0yrs

Board Members

  • Bjorn Moller (61yo)

    Independent Director

    • Tenure: 21.9yrs
  • Peter Antturi (60yo)

    Independent Director

    • Tenure: 0.5yrs
  • Rudolph Krediet

    Independent Director

    • Tenure: 2.3yrs
  • Alan Semple (59yo)

    Independent Director

    • Tenure: 4yrs
  • Kenneth Hvid (51yo)

    President

    • Tenure: 2.8yrs
  • David Schellenberg (55yo)

    Chairman

    • Tenure: 0.5yrs
  • Heidi Simon (51yo)

    Independent Director

    • Tenure: 2.3yrs

Company Information

Teekay Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teekay Corporation
  • Ticker: TK
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$474.696m
  • Shares outstanding: 100.78m
  • Website: https://www.teekay.com

Number of Employees


Location

  • Teekay Corporation
  • Belvedere Building
  • 4th Floor
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TKNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1995
TCDDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1995
TK NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1995

Biography

Teekay Corporation provides crude oil and gas marine transportation; offshore oil production; and storage and offloading services in Bermuda and internationally. It operates shuttle tankers; floating produ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:50
End of Day Share Price2019/12/06 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.