NYSE:TNK

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with mediocre 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


Market Performance


7 Day Return

11.1%

TNK

1.7%

US Oil and Gas

1.3%

US Market


1 Year Return

81.1%

TNK

-21.8%

US Oil and Gas

5.9%

US Market

Return vs Industry: TNK exceeded the US Oil and Gas industry which returned -21.8% over the past year.

Return vs Market: TNK exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

TNKIndustryMarket
7 Day11.1%1.7%1.3%
30 Day62.1%-4.0%-1.9%
90 Day62.1%-8.2%-1.8%
1 Year81.1%81.1%-19.0%-21.8%8.3%5.9%
3 Year-15.2%-23.9%-6.0%-14.4%45.6%36.2%
5 Year-33.6%-45.7%-22.5%-33.2%66.1%47.9%

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

Undervalued: TNK ($2.01) is trading below our estimate of fair value ($4.56)

Significantly Undervalued: TNK is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TNK is good value based on its PB Ratio (0.6x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

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

58.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TNK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TNK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TNK's revenue is expected to decline over the next 3 years (-8.8% per year).

High Growth Revenue: TNK's revenue is forecast to decline over the next 3 years (-8.8%).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Teekay Tankers performed over the past 5 years?

-48.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TNK is unprofitable, and losses have increased over the past 5 years at a rate of -48.1% 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 (22.6%).


Return on Equity

High ROE: TNK has a negative Return on Equity (-0.83%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: TNK is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: TNK is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Teekay Tankers's financial position?


Financial Position Analysis

Short Term Liabilities: TNK's short term assets ($228.5M) do not cover its short term liabilities ($269.5M)

Long Term Liabilities: TNK's short term assets (228.5M) do not cover its long term liabilities (938.5M)


Debt to Equity History and Analysis

Debt Level: TNK's debt to equity ratio (64.3%) is considered high

Reducing Debt: TNK's debt to equity ratio has reduced from 202.2% to 64.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TNK's debt is not covered by short term assets (assets are 0.4x 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 TNK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TNK is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 11% per year.


Next Steps

Dividend

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

2.49%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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 .


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

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

4.0yrs

Average management tenure


CEO

Kevin Mackay (50yo)

5.3yrs

Tenure

0

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


Management Age and Tenure

4.0yrs

Average Tenure

51yo

Average Age

Experienced Management: TNK's management team is considered experienced (4 years average tenure).


Board Age and Tenure

0.4yrs

Average Tenure

55yo

Average Age

Experienced Board: TNK's board of directors are not considered experienced ( 0.4 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


Management Team

  • Art Bensler (61yo)

    Director & Secretary

    • Tenure: 6.3yrs
  • Kenneth Hvid (51yo)

    Chairman of the Board

    • Tenure: 0.3yrs
  • Kevin Mackay (50yo)

    President & CEO

    • Tenure: 5.3yrs
  • Ray McNamara

    Head of Ship Management

    • Tenure: 0yrs
  • Edith Robinson (54yo)

    Corporate Secretary

    • Tenure: 0yrs
  • Stewart Andrade (46yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
  • Jim Basterfield

    Head of Human Resources

    • Tenure: 0yrs
  • Christian Waldegrave

    Director of Research & Commercial Performance

    • Tenure: 0yrs

Board Members

  • Art Bensler (61yo)

    Director & Secretary

    • Tenure: 6.3yrs
  • Rich du Moulin (72yo)

    Independent Director

    • Tenure: 11.8yrs
  • Kenneth Hvid (51yo)

    Chairman of the Board

    • Tenure: 0.3yrs
  • Sai Chu (52yo)

    Independent Director

    • Tenure: 0.4yrs
  • David Schellenberg (55yo)

    Director

    • Tenure: 0.3yrs

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$540.671m
  • Shares outstanding: 268.99m
  • Website: https://www.teekay.com/business/tankers

Number of Employees


Location

  • Teekay Tankers Ltd.
  • Belvedere Building
  • 4th Floor
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNKNYSE (New York Stock Exchange)YesClass A Common StockUSUSDDec 2007
3TKDB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 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, Conventional Tanker and Ship-to-ship Transfer (STS). The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:02
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.