TNK  Teekay Tankers Ltd

Exchange

NYSE

Sector

Consumer Services

Industry

Marine Transportation

Market Cap.

233.21M

Vuru Grade

52.78/100

Current Price

$1.64
+0.01 (+0.61%)

Growth Price

$13.13
Undervalued by 700.66%

Company Metrics

  • P/E 9.65
  • P/S 0.52
  • P/B 0.33
  • EPS -0.21
  • Cash ROIC 2.52%
  • Cash Ratio 0.29
  • Dividend 0.12 / 7.32%
  • Avg. Vol. 1.35M
  • Shares 142.20M
  • Market Cap. 233.21M

Company Description

Teekay Tankers Ltd., through its subsidiaries, engages in the ownership and operation of oil tankers. As of March 1, 2010, the company's fleet consisted of nine Aframax-class oil tankers and three Suezmax-class oil tankers. It managed four Aframax tankers in the Teekay Pool and one Suezmax tanker in the Gemini Pool; and operated seven vessels under fixed-rate time-charter contracts. The company is... more


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

News

Teekay Tankers Ltd.: No Tanking Here
Seeking Alpha - Sep 18, 2017
The proposed merger was supposed to help the situation, so Teekay Tankers Ltd. (TNK) has announced additional support for the proposed merger.
Understanding Technical Signals From Teekay Tankers Ltd. (TNK) - StockNewsGazette
Hot Stock Analysis: Teekay Tankers Ltd. (TNK) - StandardOracle
Teekay Tankers Ltd (TNK) Authorizes $45M Share Buyback
StreetInsider.com - Sep 15, 2017
Teekay Tankers Ltd. (NYSE: TNK) today announced that its Board of Directors has authorized a share repurchase program for the repurchase of up to $45 million of the Company's Class A common shares.
Teekay Tankers sets $45 million program to buyback shares
MarketWatch - Sep 15, 2017
Teekay Tankers Ltd. TNK, +0.61% said Friday it has launched a $45 million stock repurchase program. At Thursday's stock closing price of $1.44, the program would allow the company to buy back 31.25 million shares, which represents 19% of the shares ...
Morgan Stanley Reduces Position in Teekay Tankers Ltd. (TNK)
The Ledger Gazette - Sep 23, 2017
Teekay Tankers logo Morgan Stanley reduced its holdings in Teekay Tankers Ltd. (NYSE:TNK) by 27.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).
Shares Higher Over the Last Five Trading Sessions: Teekay Tankers Ltd. (NYSE:TNK) - The Herald
Teekay Tankers Ltd. (NYSE:TNK) Shorts Up 7.25% – Shares Trading Up - HugoPress
Technical Story: Teekay Tankers Ltd. (TNK) stands -15.20% away from 50 SMA
Voice Of Analysts - Sep 7, 2017
Teekay Tankers Ltd. (TNK) dropped with negative flow of -2.10% during recent week and go down so far this year; showing a decline of -38.05%.
Zacks: Analysts Expect Teekay Tankers Ltd. (TNK) Will Announce Earnings of -$0 ... - Dispatch Tribunal
Technical Facts to Know: Teekay Tankers Ltd. (TNK) traded -50.53% away from 52 ...
Voice Of Analysts - Sep 5, 2017
Teekay Tankers Ltd. (TNK) dropped with negative flow of -7.24% during recent week and go down so far this year; showing a decline of -37.61%.
Teekay Tankers Ltd. (TNK) Expected to Post Earnings of -$0.08 Per Share - The Ledger Gazette
Teekay Tankers Ltd. (TNK) jumped 0 percent in the last trading session - StandardOracle
1 Analyst Rated Teekay Tankers Ltd. (TNK) as Sell
StandardOracle - Sep 13, 2017
Now we will discuss the financial strength of Teekay Tankers Ltd.. The company's average Piotroski F-Score: 3 during the last 7 years.
Evergreen Capital Management LLC Trims Position in Teekay Tankers Ltd. (NYSE:TNK) - The Ledger Gazette
Teekay Tankers Ltd. (NYSE:TNK) has analysts on the Bullish side this week. - WeeklyHub
Breakfast Technical Briefing on Shipping Stocks -- Top Ships, Seaspan, Teekay ...
Markets Insider - Aug 28, 2017
On Friday, shares in Hamilton, Bermuda-based Teekay Tankers Ltd recorded a trading volume of 1.02 million shares. The stock declined 2.70%, closing the day at $1.52.
Stop Chasing High Dividends: Teekay Tankers Ltd. (TNK) generates Yield of 7.41%
Voice Of Analysts - Sep 20, 2017
Shares of the Teekay Tankers Ltd. (TNK) moved 13.29% over the past five trading sessions and seen boost momentum over the last week.
Teekay Tankers Ltd. (TNK) traded with volume of 1.31 Million shares in last ... - StandardOracle
Teekay Tankers Ltd. (NYSE:TNK) Stock Traded 7.3% Above Its 50 Day Average - First News 24
Morgan Stanley Sells 195566 Shares of Teekay Tankers Ltd. (TNK)
The Ledger Gazette - Sep 15, 2017
Teekay Tankers logo Morgan Stanley lowered its holdings in shares of Teekay Tankers Ltd. (NYSE:TNK) by 27.4% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for TNK 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 TNK'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.

$1.64 Current Price

$13.13 Growth Price (DCF)

Undervalued by 700.66%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: -8.2%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$5.54 Book Price

Undervalued by 237.57%


Poor Cash Return on Invested Capital over the past 5 years

TNK has been unable to consistently generate sufficient returns from 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.

TNK has only created $2.52 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 25.02M 4.30M 11.54M -69.44M 200.75M
divided by
Invested Capital 1.02B 1.00B 922.84M 1.78B 1.63B
Cash ROIC 2.46% 0.43% 1.25% -3.89% 12.34%

Very Poor Return on Equity over the past 5 years

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

TNK has generated a $17.10 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -370.18M -8.14M 57.14M 179.64M 62.86M
divided by
Stockholders' Equity 302.18M 284.67M 455.72M 877.46M 920.62M
Return on Equity -122.50% -2.86% 12.54% 20.47% 6.83%

Excellent Business Performance over the past 10 years

TNK has been able to maintain profitability in good times and bad. This could mean TNK has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

TNK has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 61.05M 74.30M 70.27M 52.14M 52.79M 25.02M 4.30M 11.54M -69.44M 200.75M

Weak Balance Sheet

TNK's financial position is not ideal. The key is to check whether TNK 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 34.84M 26.70M 10.43M 12.45M 15.86M 26.34M 25.65M 162.80M 96.42M 68.11M
Current Assets 41.02M 48.73M 23.50M 35.16M 36.75M 202.97M 215.07M 253.61M 279.81M 215.48M
Total Assets 310.32M 490.81M 539.96M 936.52M 881.93M 1.11B 1.10B 1.17B 2.17B 1.93B
Current Liabilities 8.22M 22.40M 21.64M 24.53M 22.08M 61.83M 70.19M 79.72M 289.65M 236.92M
Total Liabilities 161.53M 368.50M 333.69M 493.83M 392.56M 803.47M 812.86M 709.64M 1.29B 1.01B
Stockholder' Equity 148.79M 122.31M 206.27M 442.69M 489.37M 302.18M 284.67M 455.72M 877.46M 920.62M
Current Ratio 4.99 2.18 1.09 1.43 1.66 3.28 3.06 3.18 0.97 0.91
TL-to-TA 0.52 0.75 0.62 0.53 0.45 0.73 0.74 0.61 0.60 0.52

Low or No Reinvestment of Profits over the past 10 years

TNK has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to TNK 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 -33.03M -58.94M -40.48M -38.65M -99.07M -370.38M -388.55M -346.93M -217.41M -182.68M
Retained Earnings Growth - -78.42% 31.32% 4.53% -156.35% -273.85% -4.91% 10.71% 37.33% 15.98%

Erratic Net Profit Margins over the past 10 years

TNK has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 42.49M 51.84M 38.93M 16.31M -9.07M -370.18M -8.14M 57.14M 179.64M 62.86M
divided by
Revenue 146.31M 144.17M 113.30M 139.48M 121.00M 197.43M 170.09M 235.59M 514.19M 526.90M
Net Profit Margin 29.04% 35.96% 34.36% 11.69% -7.49% -187.50% -4.78% 24.25% 34.94% 11.93%

Varying Pricing Power over the past 10 years

TNK 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.

$59.74 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 77.10M 111.20M 76.98M 92.48M 121.00M 99.65M 63.91M 110.43M 282.32M 229.41M
divided by
Revenue 146.31M 144.17M 113.30M 139.48M 121.00M 197.43M 170.09M 235.59M 514.19M 526.90M
Gross Margin 52.70% 77.13% 67.94% 66.31% 100.00% 50.47% 37.57% 46.87% 54.90% 43.54%

Medium Capital Intensity over the past 10 years

TNK has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

29.50% 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 945,000.00 3.27M 3.83M 6.25M 2.32M 2.52M 1.90M 2.06M 236.23M 9.23M
divided by
Net Income 42.49M 51.84M 38.93M 16.31M -9.07M -370.18M -8.14M 57.14M 179.64M 62.86M
Capital Expenditure Ratio 2.22% 6.31% 9.84% 38.34% -25.54% -0.68% -23.40% 3.61% 131.50% 14.68%

Strong Dividend History over the past 10 years

TNK has consistently distributed a dividend for the past 9 years. This suggests TNK is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - 69.63M 50.35M 55.24M 51.36M 32.23M 10.03M 10.17M 15.14M 46.85M
divided by
Shares Outstanding 15.38M 25.00M 28.64M 42.33M 60.77M 79.54M 83.59M 86.25M 130.72M 156.57M
Dividend Paid Per Share - 2.79 1.76 1.31 0.85 0.41 0.12 0.12 0.12 0.30
Price at Year End 11.80 7.95 6.82 10.68 3.43 2.83 3.79 5.01 6.98 2.26
Dividend Yield - 35.03% 25.77% 12.22% 24.64% 14.32% 3.17% 2.35% 1.66% 13.24%

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that TNK hasn't initiated a stock buyback.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 15.38M 25.00M 28.64M 42.33M 60.77M 79.54M 83.59M 86.25M 130.72M 156.57M
Stock Bought Back - -38.47% -12.72% -32.33% -30.34% -23.60% -4.85% -3.08% -34.02% -16.51%
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