Teekay Corporation Fundamental Analysis (NYSE: TK)
Teekay Corporation (NYSE: TK) shows strong financial fundamentals with a PE ratio of 4.57, profit margin of 23.33%, and ROE of 31.41%. The company generates $1.4B in annual revenue with weak year-over-year growth of -22.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.7/100 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
ModerateTK shows balanced financial health with some risks.
Profitability Score
ExcellentTK achieves industry-leading margins.
Key Financial Metrics
Is TK Expensive or Cheap?
P/E Ratio
TK trades at 4.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TK's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Teekay Corporation at 0.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.39 times EBITDA. This is generally considered low.
How Well Does TK Make Money?
Net Profit Margin
For every $100 in sales, Teekay Corporation keeps $23.33 as profit after all expenses.
Operating Margin
Core operations generate 48.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.41 in profit for every $100 of shareholder equity.
ROA
Teekay Corporation generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Teekay Corporation produces operating cash flow of $242.02M, showing steady but balanced cash generation.
Free Cash Flow
Teekay Corporation produces free cash flow of $112.59M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.29 in free cash annually.
FCF Yield
TK converts 10.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How TK Stacks Against Its Sector Peers
| Metric | TK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.57 | 22.27 | Better (Cheaper) |
| ROE | 31.41% | 1228.00% | Weak |
| Net Margin | 23.33% | 1247.00% | Weak |
| Debt/Equity | 0.00 | 2.78 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 5.40 | Weak Liquidity |
| ROA | 0.00% | 4396.00% | Weak |
TK outperforms its industry in 2 out of 6 key metrics, 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
-38.59%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
238.91%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-63.99%
Industry Style: Cyclical, Value, Commodity
Declining