Teekay Tankers (NYSE:TNK) - Share price, News & Analysis

Q: What is the Fair Price of TNK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TNK ($17.48) is trading below our estimate of [[fair value]] ($49.21)

TNK fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

TNK Stock Overview

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

Rewards

Trading at 64.5% below our estimate of its fair value

Earnings are forecast to grow 106.95% per year

Risk Analysis

No risks detected for TNK from our risk checks.

Teekay Tankers Competitors

Nordic American Tankers

NYSE:NAT

US$417.5m

KNOT Offshore Partners

NYSE:KNOP

US$590.1m

Sprague Resources

NYSE:SRLP

US$498.2m

DHT Holdings

NYSE:DHT

US$1.0b

Price History & Performance

Summary of all time highs, changes and price drops for Teekay Tankers
Historical stock prices
Current Share Price	US$17.48
52 Week High	US$22.10
52 Week Low	US$9.89
Beta	-0.25
1 Month Change	-16.56%
3 Month Change	22.32%
1 Year Change	25.49%
3 Year Change	70.70%
5 Year Change	25.58%
Change since IPO	-89.08%

Recent News & Updates

Apr 20

Teekay Tankers: Crude Tanker Spot Rates Are Improving

During the fourth quarter, Teekay Tankers announced a total adjusted net loss of $24.96 million, or $0.74 per share, decreasing from a loss of $50.15 million, or $1.48 per share. We have recently experienced some encouraging signs about the ongoing recovery in spot tanker rates, but the market is still weak and, above all, unpredictable. I recommend buying TNK at or below $14.50.

Shareholder Returns

	TNK	US Oil and Gas	US Market
7D	0.4%	1.1%	-2.5%
1Y	25.5%	28.8%	-21.2%

Return vs Industry: TNK underperformed the US Oil and Gas industry which returned 28.8% over the past year.

Return vs Market: TNK exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is TNK's price volatile compared to industry and market?
TNK volatility
TNK Average Weekly Movement	9.3%
Oil and Gas Industry Average Movement	8.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: TNK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TNK's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	1,900	Kevin Mackay	https://www.teekay.com/business/tankers

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.

Teekay Tankers Fundamentals Summary

How do Teekay Tankers's earnings and revenue compare to its market cap?
TNK fundamental statistics
Market Cap	US$590.91m
Earnings (TTM)	-US$234.95m
Revenue (TTM)	US$573.64m

1.0x

P/S Ratio

-2.5x

P/E Ratio

Is TNK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TNK income statement (TTM)
Revenue	US$573.64m
Cost of Revenue	US$524.75m
Gross Profit	US$48.89m
Other Expenses	US$283.84m
Earnings	-US$234.95m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-6.95
Gross Margin	8.52%
Net Profit Margin	-40.96%
Debt/Equity Ratio	18.1%

How did TNK perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is TNK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TNK?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TNK. This is calculated by dividing TNK's market cap by their current preferred multiple.
What is TNK's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$590.91m

TNK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	-58.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does TNK's PS Ratio compare to its peers?

TNK PS Ratio vs Peers

The above table shows the PS ratio for TNK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	2x
NAT Nordic American Tankers	2.2x	18.1%	US$417.5m
KNOP KNOT Offshore Partners	2.2x	4.1%	US$590.1m
SRLP Sprague Resources	0.1x	n/a	US$498.2m
DHT DHT Holdings	3.6x	17.2%	US$1.0b
TNK Teekay Tankers	1x	-7.2%	US$590.9m

Forward PS

Price-To-Sales vs Peers: TNK is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (2x).

Price to Earnings Ratio vs Industry

How does TNK's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Sales vs Industry: TNK is good value based on its Price-To-Sales Ratio (1x) compared to the US Oil and Gas industry average (1.8x)

Price to Sales Ratio vs Fair Ratio

What is TNK's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TNK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1x
Fair PS Ratio	0.4x

Price-To-Sales vs Fair Ratio: TNK is expensive based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

Share Price vs Fair Value

What is the Fair Price of TNK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TNK ($17.48) is trading below our estimate of fair value ($49.21)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

107.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: TNK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TNK is expected to become profitable in the next 3 years.

Revenue vs Market: TNK's revenue is expected to decline over the next 3 years (-7.2% per year).

High Growth Revenue: TNK's revenue is forecast to decline over the next 3 years (-7.2% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TNK's Return on Equity is forecast to be low in 3 years time (11.5%).

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Past Performance

How has Teekay Tankers performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-21.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TNK is currently unprofitable.

Growing Profit Margin: TNK is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: TNK is unprofitable, and losses have increased over the past 5 years at a rate of 21.2% per year.

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

Earnings vs Industry: TNK is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (102.2%).

Return on Equity

High ROE: TNK has a negative Return on Equity (-28.48%), as it is currently unprofitable.

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Financial Health

How is Teekay Tankers's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TNK's short term assets ($231.1M) exceed its short term liabilities ($183.8M).

Long Term Liabilities: TNK's short term assets ($231.1M) do not cover its long term liabilities ($574.1M).

Debt to Equity History and Analysis

Debt Level: TNK's net debt to equity ratio (15.8%) is considered satisfactory.

Reducing Debt: TNK's debt to equity ratio has reduced from 90.8% to 18.1% over the past 5 years.

Debt Coverage: TNK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if TNK's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TNK has not reported any payouts.

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Management

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

3.2yrs

Average board tenure

CEO

Kevin Mackay (53 yo)

8.08yrs

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 extensive years’ experience in the marine energy...

Board Members

Experienced Board: TNK's board of directors are considered experienced (3.2 years average tenure).

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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31