NYSE:TNK

Stock Analysis Report

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Executive Summary

Teekay Tankers Ltd. provides marine transportation services to oil industries in Bermuda and internationally.


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.6%

TNK

-4.4%

US Oil and Gas

2.3%

US Market


1 Year Return

23.2%

TNK

-43.6%

US Oil and Gas

6.7%

US Market

Return vs Industry: TNK exceeded the US Oil and Gas industry which returned -43.6% over the past year.

Return vs Market: TNK exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

TNKIndustryMarket
7 Day0.6%-4.4%2.3%
30 Day-20.2%-9.7%6.0%
90 Day-32.2%5.5%18.9%
1 Year23.2%23.2%-41.0%-43.6%9.0%6.7%
3 Year2.9%-3.8%-35.4%-42.3%36.6%27.7%
5 Year-74.3%-78.7%-38.5%-48.6%64.2%46.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Teekay Tankers 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: TNK ($13.01) is trading below our estimate of fair value ($33.47)

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


Price To Earnings Ratio

PE vs Industry: TNK is good value based on its PE Ratio (3.2x) compared to the US Oil and Gas industry average (8x).

PE vs Market: TNK is good value based on its PE Ratio (3.2x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: TNK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TNK is good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Teekay Tankers forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-59.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNK's earnings are forecast to decline over the next 3 years (-59.2% per year).

Earnings vs Market: TNK's earnings are forecast to decline over the next 3 years (-59.2% per year).

High Growth Earnings: TNK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TNK's revenue is expected to decline over the next 3 years (-30.1% per year).

High Growth Revenue: TNK's revenue is forecast to decline over the next 3 years (-30.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TNK is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Teekay Tankers performed over the past 5 years?

-40.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TNK has high quality earnings.

Growing Profit Margin: TNK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TNK's earnings have declined by -40% per year over the past 5 years.

Accelerating Growth: TNK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TNK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-21.6%).


Return on Equity

High ROE: TNK's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Teekay Tankers's financial position?


Financial Position Analysis

Short Term Liabilities: TNK's short term assets ($495.2M) exceed its short term liabilities ($244.9M).

Long Term Liabilities: TNK's short term assets ($495.2M) do not cover its long term liabilities ($882.7M).


Debt to Equity History and Analysis

Debt Level: TNK's debt to equity ratio (48.5%) is considered high.

Reducing Debt: TNK's debt to equity ratio has reduced from 143.7% to 48.5% over the past 5 years.

Debt Coverage: TNK's debt is well covered by operating cash flow (39.5%).

Interest Coverage: TNK's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Kevin Mackay (51yo)

6.08yrs

Tenure

Mr. Kevin J. Mackay has been the Chief Executive Officer and President of Teekay Tankers Ltd. since June 20, 2014. Mr. Mackay joined Teekay in 2014. He has over 20 years experience in the marine energy tra ...


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Mackay
President & CEO6.08yrsno datano data
Stewart Andrade
Chief Financial Officer2.58yrsno datano data
Jim Basterfield
Head of Human Resourcesno datano datano data
Raymond McNamara
Head of Ship Managementno datano datano data
Arthur Bensler
Director & Secretary7.08yrsno datano data
Edith Robinson
Corporate Secretaryno datano datano data
Christian Waldegrave
Director of Research & Commercial Performanceno datano datano data

6.1yrs

Average Tenure

53yo

Average Age

Experienced Management: TNK's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arthur Bensler
Director & Secretary7.08yrsno datano data
Richard du Moulin
Independent Director12.58yrsno datano data
Kenneth Hvid
Chairman of the Board1.08yrsno datano data
Sai Chu
Independent Director1.17yrsno datano data
David Schellenberg
Independent Director1.08yrsno datano data

1.2yrs

Average Tenure

56yo

Average Age

Experienced Board: TNK's board of directors are not considered experienced ( 1.2 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 Tankers Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teekay Tankers Ltd.
  • Ticker: TNK
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$438.712m
  • Shares outstanding: 33.72m
  • Website: https://www.teekay.com/business/tankers

Number of Employees


Location

  • Teekay Tankers Ltd.
  • 550 Burrard Street
  • Suite 2000
  • Vancouver
  • British Columbia
  • V6C 2K2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNKNYSE (New York Stock Exchange)YesClass A Common StockUSUSDDec 2007
3TKADB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 2007
0EAQLSE (London Stock Exchange)YesClass A Common StockGBUSDDec 2007
TNK NBMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNDec 2007

Biography

Teekay Tankers Ltd. provides marine transportation services to oil industries in Bermuda and internationally. It operates through two segments, Tanker and Ship-to-ship Transfer (STS). The company offers voyage and time charter services; and offshore STS 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, LNG terminal management, consultancy, procurement, and equipment rental services; and lightering support services, including full service lightering and other lightering support services. As of December 31, 2019, the company owned and leased 55 double-hull oil tankers, 2 ship-to-ship support vessels, and 9 time chartered-in tankers. Its vessels are employed through a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading. Teekay Tankers Ltd. was founded in 2007 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 00:00
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.