Teekay Corporation
Teekay Corporation Fundamental Analysis
Teekay Corporation (TK) shows weak financial fundamentals with a PE ratio of 11.20, profit margin of 9.60%, and ROE of 9.39%. The company generates $1.0B in annual revenue with weak year-over-year growth of -16.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TK's fundamental strength across five key dimensions:
Efficiency Score
WeakTK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTK trades at attractive valuation levels.
Growth Score
WeakTK faces weak or negative growth trends.
Financial Health Score
ExcellentTK maintains a strong and stable balance sheet.
Profitability Score
WeakTK struggles to sustain strong margins.
Key Financial Metrics
Is TK Expensive or Cheap?
P/E Ratio
TK trades at 11.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TK's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Teekay Corporation at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.50 times EBITDA. This is generally considered low.
How Well Does TK Make Money?
Net Profit Margin
For every $100 in sales, Teekay Corporation keeps $9.60 as profit after all expenses.
Operating Margin
Core operations generate 31.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.39 in profit for every $100 of shareholder equity.
ROA
Teekay Corporation generates $4.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Teekay Corporation generates strong operating cash flow of $298.76M, reflecting robust business health.
Free Cash Flow
Teekay Corporation generates strong free cash flow of $234.63M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.75 in free cash annually.
FCF Yield
TK converts 23.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How TK Stacks Against Its Sector Peers
| Metric | TK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.20 | 20.10 | Better (Cheaper) |
| ROE | 9.39% | 1093.00% | Weak |
| Net Margin | 9.60% | -30341.00% (disorted) | Weak |
| Debt/Equity | 0.08 | -0.69 (disorted) | Distorted |
| Current Ratio | 5.62 | 4.79 | Strong Liquidity |
| ROA | 4.16% | 2.00% | Excellent |
TK outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Teekay Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-29.96%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
199.07%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
34.48%
Industry Style: Cyclical, Value, Commodity
High Growth