TK  Teekay Shipping Corporation

Exchange

NYSE

Sector

Transportation

Industry

Marine Transportation

Market Cap.

931.82M

Vuru Grade

15.50/100

Current Price

$10.88
-0.19 (-1.72%)

Company Metrics

  • P/E 10.52
  • P/S 0.38
  • P/B 1.06
  • EPS -1.15
  • Cash ROIC -6.74%
  • Cash Ratio 0.37
  • Dividend 0.22 / 2.16%
  • Avg. Vol. 1.21M
  • Shares 73.19M
  • Market Cap. 931.82M

Company Description

Teekay Corporation provides crude oil and petroleum product transportation services in Bermuda and internationally. The company's Shuttle Tanker and FSO includes shuttle tankers and FSO units for providing transportation and storage services to oil companies operating offshore oil field installations primarily in the North Sea and Brazil. Its FPSO segment includes FPSO units and other vessels used... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Teekay Corporation (TK) Moves Higher on Volume Spike for February 21
Equities.com - Feb 21, 2017
Teekay Corporation (TK) traded on unusually high volume on Feb. 21, as the stock gained 8.85% to close at $11.07. On the day, Teekay Corporation saw 2.29 million shares trade hands on 11,209 trades. Considering that the stock averages only a daily ...
Mover to Watch For: Teekay Corporation (NYSE:TK) - TopChronicle
Analysts showing optimistic trends for: Teekay Corporation (NYSE:TK) - News Oracle
Teekay Corporation (TK) Ex-Dividend Date Scheduled for January 25, 2017
Nasdaq - Jan 24, 2017
Teekay Corporation ( TK ) will begin trading ex-dividend on January 25, 2017. A cash dividend payment of $0.055 per share is scheduled to be paid on February 15, 2017.
Teekay Corporation (TK) Soars 5.56% on January 24
Equities.com - Jan 24, 2017
Teekay Corporation (TK) had a good day on the market for Tuesday January 24 as shares jumped 5.56% to close at $10.64. About 1.85 million shares traded hands on 8,510 trades for the day, compared with an average daily volume of 1.39 million shares out ...
Teekay Corporation (TK) Moves Higher on Volume Spike for January 24
Equities.com - Jan 24, 2017
Teekay Corporation (TK) traded on unusually high volume on Jan. 24, as the stock gained 5.56% to close at $10.64. On the day, Teekay Corporation saw 1.85 million shares trade hands on 8,510 trades. Considering that the stock averages only a daily ...
Teekay Corporation (TK) Soars 7.42% on January 25
Equities.com - Jan 25, 2017
Teekay Corporation (TK) had a good day on the market for Wednesday January 25 as shares jumped 7.42% to close at $11.37. About 3.23 million shares traded hands on 13,114 trades for the day, compared with an average daily volume of 1.39 million ...
Teekay Corporation (NYSE:TK) Upgrades/Downgrades Update - The Newburgh Press
Jefferies Group LLC Boosts Teekay Corporation (TK) Price Target to $8.50 - The Cerbat Gem
What You Must Know About Teekay Corporation's (TK) 2.9% ROE?
Simply Wall St - Feb 19, 2017
Teekay Corporation's (NYSE:TK) ROE of 2.9% over the past year, compared to its industry's 6.81%, indicates that investors would have been better off choosing the broader industry in terms of returns generated on their committed capital.
Teekay Group Announces Fourth Quarter and Fiscal Year 2016 Earnings Results ...
Yahoo Finance - Feb 14, 2017
HAMILTON, BERMUDA--(Marketwired - Feb 14, 2017) - Teekay Corporation (Teekay) (TK), Teekay LNG Partners L.P. (Teekay LNG) (TGP), Teekay Offshore Partners L.P.
Stock Roundup: Teekay Corporation (NYSE:TK)
TopChronicle - Feb 6, 2017
Teekay Corporation (NYSE:TK) traded with the volume of 1.38 Million in the previous trading session. The Stock opened its session at $9.89 and closed at $10.16 by showing increase of 2.52 percent.
Stock Price of Teekay Corporation (TK) Decreases -4.96% - Trade Calls
Teekay Corporation (TK) Set to Announce Quarterly Earnings on Thursday
The Cerbat Gem - Feb 14, 2017
Teekay Corporation logo Teekay Corporation (NYSE:TK) will announce its earnings results before the market opens on Thursday, February 16th.
Teekay Corporation (TK) is Anson Funds Management LP's 9th Largest Position - Sports Perspectives
Stock Price of Teekay Corporation (TK) Decreases -0.3% - TheFounders Daily
Zacks Investment Research Upgrades Teekay Corporation (TK) to “Hold”
The Cerbat Gem - Feb 9, 2017
Teekay Corporation logo Teekay Corporation (NYSE:TK) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report issued on Tuesday.
Teekay Corporation (NYSE:TK) Approaching Earnings Date: What matter for investors? - The Voice Registrar
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for TK to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate TK's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$10.88 Current Price

$-77.62 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$18.31 Book Price

Undervalued by 68.28%


Very Poor Cash Return on Invested Capital over the past 5 years

TK has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

TK has lost $6.74 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -647.85M -234.66M -769.12M -548.61M -1.03B
divided by
Invested Capital 9.29B 8.83B 8.97B 9.67B 10.47B
Cash ROIC -6.98% -2.66% -8.57% -5.67% -9.80%

Poor Return on Equity over the past 5 years

TK has shown an inability to deliver strong results for shareholders. This could be due to poor management, TK operating in a highly competitive industry, or having a weak business in general.

TK has only generated $1.82 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income -368.92M -311.12M 35.48M 124.00M 405.46M
divided by
Stockholders' Equity 1.43B 1.32B 1.13B 1.10B 919.03M
Return on Equity -25.80% -23.65% 3.13% 11.29% 44.12%

Poor Business Performance over the past 10 years

TK's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

TK has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 89.83M -655.29M -284.92M -126.96M 68.66M -647.85M -234.66M -769.12M -548.61M -1.03B

Weak Balance Sheet

TK's financial position is not ideal. The key is to check whether TK is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 343.91M 442.67M 906.76M 459.97M 806.54M 715.30M 651.79M 636.21M 827.73M 704.93M
Current Assets 747.14M 1.02B 1.39B 864.38M 1.26B 1.21B 1.56B 1.67B 1.34B 1.32B
Total Assets 7.73B 10.06B 10.22B 9.51B 9.91B 11.13B 11.00B 11.56B 11.86B 13.06B
Current Liabilities 774.07M 922.21M 1.03B 845.86M 1.15B 1.13B 1.52B 1.95B 1.37B 1.89B
Total Liabilities 5.21B 7.37B 8.15B 7.27B 7.93B 9.70B 9.69B 10.42B 10.77B 12.14B
Stockholder' Equity 2.53B 2.69B 2.07B 2.24B 1.98B 1.43B 1.32B 1.13B 1.10B 919.03M
Current Ratio 0.97 1.10 1.35 1.02 1.09 1.07 1.02 0.86 0.98 0.70
TL-to-TA 0.67 0.73 0.80 0.76 0.80 0.87 0.88 0.90 0.91 0.93

Low or No Reinvestment of Profits over the past 10 years

TK has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to TK operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 1.94B 2.16B 1.51B 1.59B 1.31B 792.68M 648.22M 435.22M 355.87M 158.90M
Retained Earnings Growth - 11.31% -30.31% 5.16% -17.12% -39.67% -18.22% -32.86% -18.23% -55.35%

Loss Making Entity over the past 10 years

TK has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$1.12 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 262.24M 181.25M -469.46M 128.41M -267.29M -368.92M -311.12M 35.48M 124.00M 405.46M
divided by
Revenue 2.01B 2.41B 3.19B 2.17B 2.07B 1.95B 1.96B 1.83B 1.99B 2.45B
Net Profit Margin 13.03% 7.53% -14.70% 5.91% -12.92% -18.88% -15.90% 1.94% 6.22% 16.55%

Varying Pricing Power over the past 10 years

TK has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$57.01 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 831.32M 1.41B 1.78B 1.28B 1.19B 1.95B 957.09M 808.07M 989.54M 1.35B
divided by
Revenue 2.01B 2.41B 3.19B 2.17B 2.07B 1.95B 1.96B 1.83B 1.99B 2.45B
Gross Margin 41.29% 58.75% 55.77% 58.74% 57.68% 100.00% 48.93% 44.15% 49.63% 55.18%

High Capital Intensity over the past 10 years

TK spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

883.23% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 455.89M 910.30M 716.77M 495.21M 343.09M 755.05M 523.60M 1.06B 994.93M 1.80B
divided by
Net Income 262.24M 181.25M -469.46M 128.41M -267.29M -368.92M -311.12M 35.48M 124.00M 405.46M
Capital Expenditure Ratio 173.84% 502.23% -152.68% 385.64% -128.36% -204.67% -168.30% 2,992.40% 802.35% 442.93%

Very Strong Dividend History over the past 10 years

TK has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests TK is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 63.07M 72.50M 82.88M 201.69M 92.70M 295.42M 329.85M 360.25M 451.82M 486.27M
divided by
Shares Outstanding 75.13M 74.74M 72.49M 73.06M 72.86M 70.23M 69.26M 70.46M 72.07M 73.19M
Dividend Paid Per Share 0.84 0.97 1.14 2.76 1.27 4.21 4.76 5.11 6.27 6.64
Price at Year End 34.97 44.03 15.78 21.44 31.34 26.40 30.98 48.01 52.18 9.45
Dividend Yield 2.40% 2.20% 7.24% 12.88% 4.06% 15.93% 15.37% 10.65% 12.02% 70.31%

History of Stock Buybacks over the past 10 years

TK has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 75.13M 74.74M 72.49M 73.06M 72.86M 70.23M 69.26M 70.46M 72.07M 73.19M
Stock Bought Back - 0.53% 3.09% -0.77% 0.27% 3.74% 1.40% -1.70% -2.23% -1.54%
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