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In the world of growth stocks, NYSE:TNK shines as a value proposition.

By Mill Chart

Last update: Feb 23, 2024

Here's TEEKAY TANKERS LTD-CLASS A (NYSE:TNK) for you, a growth stock our stock screener believes is undervalued. NYSE:TNK is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Examination for NYSE:TNK

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:TNK was assigned a score of 8 for growth:

  • TNK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1127.48%, which is quite impressive.
  • TNK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 51.63% yearly.
  • The Revenue has grown by 65.69% in the past year. This is a very strong growth!
  • Measured over the past years, TNK shows a quite strong growth in Revenue. The Revenue has been growing by 19.78% on average per year.
  • TNK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.29% yearly.
  • TNK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.63% yearly.

Unpacking NYSE:TNK's Valuation Rating

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:TNK has received a 9 out of 10:

  • With a Price/Earnings ratio of 3.41, the valuation of TNK can be described as very cheap.
  • TNK's Price/Earnings ratio is rather cheap when compared to the industry. TNK is cheaper than 89.77% of the companies in the same industry.
  • TNK is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 4.58, which indicates a rather cheap valuation of TNK.
  • Based on the Price/Forward Earnings ratio, TNK is valued cheaper than 93.02% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.63. TNK is valued rather cheaply when compared to this.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNK indicates a rather cheap valuation: TNK is cheaper than 87.91% of the companies listed in the same industry.
  • TNK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TNK is cheaper than 92.56% of the companies in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of TNK may justify a higher PE ratio.
  • TNK's earnings are expected to grow with 24.46% in the coming years. This may justify a more expensive valuation.

Health Assessment of NYSE:TNK

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:TNK has earned a 9 out of 10:

  • An Altman-Z score of 5.41 indicates that TNK is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of TNK (5.41) is better than 91.63% of its industry peers.
  • TNK has a debt to FCF ratio of 0.23. This is a very positive value and a sign of high solvency as it would only need 0.23 years to pay back of all of its debts.
  • The Debt to FCF ratio of TNK (0.23) is better than 89.77% of its industry peers.
  • A Debt/Equity ratio of 0.09 indicates that TNK is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.09, TNK is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • A Current Ratio of 3.58 indicates that TNK has no problem at all paying its short term obligations.
  • The Current ratio of TNK (3.58) is better than 86.05% of its industry peers.
  • TNK has a Quick Ratio of 3.18. This indicates that TNK is financially healthy and has no problem in meeting its short term obligations.
  • TNK has a better Quick ratio (3.18) than 86.05% of its industry peers.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TNK has achieved a 6:

  • Looking at the Return On Assets, with a value of 30.97%, TNK belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
  • With a decent Return On Equity value of 38.57%, TNK is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • TNK has a Return On Invested Capital of 27.92%. This is amongst the best in the industry. TNK outperforms 88.84% of its industry peers.
  • TNK has a better Profit Margin (38.66%) than 78.60% of its industry peers.
  • In the last couple of years the Profit Margin of TNK has grown nicely.
  • Looking at the Operating Margin, with a value of 40.88%, TNK is in the better half of the industry, outperforming 72.56% of the companies in the same industry.
  • In the last couple of years the Operating Margin of TNK has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of TNK contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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TEEKAY TANKERS LTD-CLASS A

NYSE:TNK (4/23/2024, 11:36:04 AM)

56.93

+0.66 (+1.17%)

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