TK  Teekay Shipping Corporation

Exchange

NYSE

Sector

Transportation

Industry

Marine Transportation

Market Cap.

753.04M

Vuru Grade

15.50/100

Current Price

$8.73
-0.01 (-0.11%)

Company Metrics

  • P/E 10.52
  • P/S 0.35
  • P/B 0.94
  • EPS -1.42
  • Cash ROIC -5.40%
  • Cash Ratio 0.44
  • Dividend 0.22 / 2.47 %
  • Avg. Vol. 1.03M
  • Shares 86.26M
  • Market Cap. 753.04M

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

Analyzing Teekay Corporation (TK) & KNOT Offshore Partners (KNOP)
Week Herald - Sep 17, 2017
Teekay Corporation (NYSE: TK) and KNOT Offshore Partners (NYSE:KNOP) are both small-cap transportation companies, but which is the better stock?
Is there Inherent Value in Teekay Corporation (NYSE:TK)
Financial Newsweek - 7 hours ago
The Value Composite Two of Teekay Corporation (NYSE:TK) is 38. The VC2 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield.
Teekay Corporation (TK) Stake Lessened by Numeric Investors LLC
The Ledger Gazette - 22 hours ago
Teekay Corporation logo Numeric Investors LLC lessened its stake in Teekay Corporation (NYSE:TK) by 78.6% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission.
Teekay and Brookfield Announce Closing of Strategic Transaction; and Changes ...
GlobeNewswire (press release) - Sep 25, 2017
HAMILTON, Bermuda, Sept. 25, 2017 (GLOBE NEWSWIRE) -- Teekay Corporation (Teekay) (NYSE:TK) and Teekay Offshore Partners L.P.
Teekay Corporation (TK) Raised to Hold at Zacks Investment Research - Dispatch Tribunal
Brookfield acquires 60% interest in Teekay Offshore - Energy Business Review
Consensus score reveals Hold position in Services stock: Teekay Corporation (TK)
Street Observer (press release) - 22 hours ago
Teekay Corporation (TK) stock price moved with dropping change along with the volume 0.4 million shares in Thursday trading session.
The Hottest Topic In Shipping
Seeking Alpha - Oct 18, 2017
... Ship Finance International (NYSE:SFL), Seaspan Corporation (NYSE:SSW), Scorpio Tankers (NYSE:STNG), Teekay LNG Partners (NYSE:TGP), Teekay Corporation (NYSE:TK), Teekay Tankers (NYSE:TNK) and Tsakos Energy Navigation (NYSE:TNP).
Spotlight on Ownership Reviews and Performance: Teekay Corporation (NYSE:TK)
Wallstreet Investorplace - 21 hours ago
Teekay Corporation (NYSE:TK) dropped of -0.91% in latest trading session as ownership structure took place active position for technical analysis.
Teekay Corporation (NYSE:TK) Raised to “Buy” at Zacks Investment Research
The Ledger Gazette - Oct 14, 2017
Teekay Corporation logo Zacks Investment Research upgraded shares of Teekay Corporation (NYSE:TK) from a hold rating to a buy rating in a research note released on Wednesday, October 4th.
Brokerages Set Teekay Corporation (TK) PT at $5.33 - StockNewsTimes
Teekay Corporation (TK) Analysts See $-0.40 EPS - BZ Weekly
Teekay Corporation (NYSE:TK) Lowered to “Hold” at Zacks Investment Research
StockNewsTimes - Oct 16, 2017
Teekay Corporation logo Teekay Corporation (NYSE:TK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Thursday, October 5th.
Were Analysts Bullish Teekay Corporation (NYSE:TK) This Week? - WeeklyHub
Teekay LNG Partners Announces Pricing of Series B Preferred Offering - GlobeNewswire (press release)
Technical Signs Every Trader Should Know: Teekay Corporation (TK), Annaly ...
Post Analyst - Oct 9, 2017
Teekay Corporation (NYSE:TK) traded at an unexpectedly low level on 10/06/2017 when the stock experienced a -3.08% loss to a closing price of $8.8.
Annaly Capital Management Inc (NLY) Lifted to "Buy" at Zacks Investment Research - Іnsіdеr Cаr Nеws
Parametric Portfolio Associates LLC Raises Stake in Annaly Capital Management ... - 10,000 Couples
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.

$8.73 Current Price

$-2.10 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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