TK  Teekay Shipping Corporation

Exchange

NYSE

Sector

Transportation

Industry

Marine Transportation

Market Cap.

560.19M

Vuru Grade

15.50/100

Current Price

$6.50
+0.30 (+4.84%)

Company Metrics

  • P/E 10.52
  • P/S 0.24
  • P/B 0.63
  • EPS -1.52
  • Cash ROIC -5.40%
  • Cash Ratio 0.44
  • Dividend 0.22 / 3.38%
  • Avg. Vol. 1.40M
  • Shares 86.18M
  • Market Cap. 560.19M

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

Shares of Teekay Corporation Sink on an Unexpected First-Quarter Loss
Motley Fool - May 18, 2017
One thing to remember is that Teekay Corporation reports its earnings as a consolidation of all its daughter businesses -- oil vessel operator Teekay Tankers (NYSE:TNK), Teekay Offshore Partners (NYSE:TOO), and Teekay LNG Partners (NYSE:TGP).
Teekay Corporation's (TK) CEO Kenneth Hvid on Q1 2017 Results - Earnings Call ... - Seeking Alpha
Active Stock Momentum: Teekay Corporation (TK) - FactsReporter
Teekay: Capital Program Backfires
Seeking Alpha - May 26, 2017
Teekay Corporation management began an expansion when conditions were relatively good and now has to complete a lot of capital programs as the industry downtrend continues.
Teekay Corp. -10%, Teekay Offshore -9% after earnings
Seeking Alpha - May 18, 2017
Teekay Corp. (TK -9.9%) and Teekay Offshore Partners (TOO -8.8%) are sharply lower after reporting Q1 earnings results and the cancellation of a contract with Petrobras (PBR -14.6%).
Teekay Tankers' (TNK) Underperform Rating Reaffirmed at Bank of America Corp - The Cerbat Gem
Teekay Tankers Ltd.'s (TNK) noted a price change of -2.56% and Entravision ... - Stocks Gallery
Teekay Corporation (TK) Ex-Dividend Date Scheduled for May 03, 2017
Nasdaq - May 2, 2017
Teekay Corporation ( TK ) will begin trading ex-dividend on May 03, 2017. A cash dividend payment of $0.055 per share is scheduled to be paid on May 17, 2017.
The Secret to Option Trading Right Before Earnings in Teekay Corporation
CML News - 16 hours ago
There is a wonderful secret to trading options right before earnings announcements in Teekay Corporation (NYSE:TK) , and really many stocks, that benefits from the rising implied volatility but avoids the risk into the actual earnings release and also ...
Frigate Ventures LP Has Decreased Its Position in Teekay Corporation (TK) by ... - Finance News Daily
Avenir Corp Has $161000 Stake in Teekay Co. (TK) - Chaffey Breeze
Top Spanish investor buys into Teekay Corp
TradeWinds (subscription) - May 9, 2017
Cobas Asset Management, a top Spanish investment firm, has emerged as a new significant shareholder in Teekay Corp. The Madrid-based company has built up a stake of 4.3m shares, or 5.07%, of the US-listed tanker company, according to a regulatory ...
Teekay Corporation Reports First Quarter Loss of $45 million
Hellenic Shipping News Worldwide - May 18, 2017
Teekay Corporation (Teekay or the Company) (NYSE:TK) today reported the Company's results for the quarter ended March 31, 2017.
Teekay Corp sees deeper red than expected - TradeWinds (subscription)
Teekay Corp first-quarter loss narrows on a YOY basis - Myiris.com
Teekay Offshore Partners: Shareholder Dilution Was Better Than This
Seeking Alpha - May 22, 2017
Teekay Corporation announced that it is focused on helping the partnership solve its potential liquidity issues. Teekay Corporation guarantees some partnership loans. Potential joint ventures and shareholder dilution could eliminate all the profit ...
Teekay Corporation (NYSE:TK) Shares Tick 0.62% For the Week
Concord Register - 15 hours ago
Teekay Corporation (NYSE:TK) shares saw the needle move 0.62% on the week. The stock closed the most recent session at $6.50 after seeing 2128282 shares trade hands.
Option Market Alert: Teekay Corporation Implied Price Swing Hits An Elevated Level
CML News - May 26, 2017
No Risk Alert Here: Before we dive into any analysis we simply note that Teekay Corporation (NYSE:TK) risk is neither elevated nor depressed.
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.

$6.50 Current Price

$-2.11 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

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 $5.40 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -234.66M -769.12M -548.61M -1.03B -28.21M
divided by
Invested Capital 8.83B 8.97B 9.67B 10.47B 9.55B
Cash ROIC -2.66% -8.57% -5.67% -9.80% -0.30%

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 $6.98 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -311.12M 35.48M 124.00M 405.46M -
divided by
Stockholders' Equity 1.32B 1.13B 1.10B 919.03M -
Return on Equity -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
2007200820092010201120122013201420152016
Free Cash Flow -655.29M -284.92M -126.96M 68.66M -647.85M -234.66M -769.12M -548.61M -1.03B -28.21M

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
2007200820092010201120122013201420152016
Cash 442.67M 906.76M 459.97M 806.54M 715.30M 651.79M 636.21M 827.73M 704.93M 722.75M
Current Assets 1.02B 1.39B 864.38M 1.26B 1.21B 1.56B 1.67B 1.34B 1.32B 1.28B
Total Assets 10.06B 10.22B 9.51B 9.91B 11.13B 11.00B 11.56B 11.86B 13.06B 12.81B
Current Liabilities 922.21M 1.03B 845.86M 1.15B 1.13B 1.52B 1.95B 1.37B 1.89B 1.65B
Total Liabilities 7.37B 8.15B 7.27B 7.93B 9.70B 9.69B 10.42B 10.77B 12.14B 11.92B
Stockholder' Equity 2.69B 2.07B 2.24B 1.98B 1.43B 1.32B 1.13B 1.10B 919.03M -
Current Ratio 1.10 1.35 1.02 1.09 1.07 1.02 0.86 0.98 0.70 0.78
TL-to-TA 0.73 0.80 0.76 0.80 0.87 0.88 0.90 0.91 0.93 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
2007200820092010201120122013201420152016
Retained Earnings 2.16B 1.51B 1.59B 1.31B 792.68M 648.22M 435.22M 355.87M 158.90M 22.89M
Retained Earnings Growth - -30.31% 5.16% -17.12% -39.67% -18.22% -32.86% -18.23% -55.35% -85.59%

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.

$2.43 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 181.25M -469.46M 128.41M -267.29M -368.92M -311.12M 35.48M 124.00M 405.46M -
divided by
Revenue 2.41B 3.19B 2.17B 2.07B 1.95B 1.96B 1.83B 1.99B 2.45B 2.33B
Net Profit Margin 7.53% -14.70% 5.91% -12.92% -18.88% -15.90% 1.94% 6.22% 16.55% -

Strong 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. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$58.10 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
2007200820092010201120122013201420152016
Gross Profit 1.41B 1.78B 1.28B 1.19B 1.95B 957.09M 808.07M 989.54M 1.35B 1.22B
divided by
Revenue 2.41B 3.19B 2.17B 2.07B 1.95B 1.96B 1.83B 1.99B 2.45B 2.33B
Gross Margin 58.75% 55.77% 58.74% 57.68% 100.00% 48.93% 44.15% 49.63% 55.18% 52.18%

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.

1,025.11% 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
2007200820092010201120122013201420152016
Capital Expenditure 910.30M 716.77M 495.21M 343.09M 755.05M 523.60M 1.06B 994.93M 1.80B 648.33M
divided by
Net Income 181.25M -469.46M 128.41M -267.29M -368.92M -311.12M 35.48M 124.00M 405.46M -
Capital Expenditure Ratio 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
2007200820092010201120122013201420152016
Dividend Paid 72.50M 82.88M 201.69M 92.70M 295.42M 329.85M 360.25M 451.82M 486.27M 17.41M
divided by
Shares Outstanding 74.74M 72.49M 73.06M 72.86M 70.23M 69.26M 70.46M 72.07M 73.19M 79.21M
Dividend Paid Per Share 0.97 1.14 2.76 1.27 4.21 4.76 5.11 6.27 6.64 0.22
Price at Year End 44.03 15.78 21.44 31.34 26.40 30.98 48.01 52.18 9.45 8.03
Dividend Yield 2.20% 7.24% 12.88% 4.06% 15.93% 15.37% 10.65% 12.02% 70.31% 2.74%

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
2007200820092010201120122013201420152016
Shares Outstanding 74.74M 72.49M 73.06M 72.86M 70.23M 69.26M 70.46M 72.07M 73.19M 79.21M
Stock Bought Back - 3.09% -0.77% 0.27% 3.74% 1.40% -1.70% -2.23% -1.54% -7.60%
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