TEEKAY TANKERS LTD-CLASS A (TNK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNK - BMG8726X1065 - Common Stock
61.78 USD
+1.31 (+2.17%)
62 USD
+0.22 (+0.36%)
Taking everything into account, TNK scores 6 out of 10 in our fundamental rating. TNK was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. TNK scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TNK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- TNK had positive earnings in the past year.
- TNK had a positive operating cash flow in the past year.
- TNK had positive earnings in 4 of the past 5 years.
- Of the past 5 years TNK 4 years had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 15.32%, TNK belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
- TNK's Return On Equity of 16.77% is amongst the best of the industry. TNK outperforms 82.13% of its industry peers.
- TNK has a Return On Invested Capital of 7.35%. This is in the better half of the industry: TNK outperforms 66.67% of its industry peers.
- TNK had an Average Return On Invested Capital over the past 3 years of 17.28%. This is below the industry average of 21.94%.
- The 3 year average ROIC (17.28%) for TNK is well above the current ROIC(7.35%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 16.77% | ||
| ROIC | 7.35% |
ROA(3y)20.14%
ROA(5y)10.04%
ROE(3y)26.17%
ROE(5y)11.54%
ROIC(3y)17.28%
ROIC(5y)N/A
1.3 Margins
- TNK has a Profit Margin of 31.00%. This is amongst the best in the industry. TNK outperforms 88.89% of its industry peers.
- TNK's Profit Margin has improved in the last couple of years.
- The Operating Margin of TNK (17.80%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of TNK has grown nicely.
- Looking at the Gross Margin, with a value of 30.51%, TNK is in line with its industry, outperforming 42.03% of the companies in the same industry.
- In the last couple of years the Gross Margin of TNK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 31% | ||
| GM | 30.51% |
OM growth 3YN/A
OM growth 5Y15.59%
PM growth 3YN/A
PM growth 5Y49.57%
GM growth 3Y64.82%
GM growth 5Y5.27%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TNK is creating value.
- The number of shares outstanding for TNK has been increased compared to 1 year ago.
- The number of shares outstanding for TNK has been increased compared to 5 years ago.
- TNK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- TNK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC8.8%
2.3 Liquidity
- A Current Ratio of 8.78 indicates that TNK has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 8.78, TNK belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
- A Quick Ratio of 8.47 indicates that TNK has no problem at all paying its short term obligations.
- TNK has a better Quick ratio (8.47) than 93.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.78 | ||
| Quick Ratio | 8.47 |
3. Growth
3.1 Past
- TNK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.71%.
- TNK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.31% yearly.
- The Revenue for TNK has decreased by -12.32% in the past year. This is quite bad
- TNK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.43% yearly.
EPS 1Y (TTM)-51.71%
EPS 3YN/A
EPS 5Y41.31%
EPS Q2Q%-16.3%
Revenue 1Y (TTM)-12.32%
Revenue growth 3Y31.36%
Revenue growth 5Y5.43%
Sales Q2Q%-5.86%
3.2 Future
- The Earnings Per Share is expected to decrease by -21.25% on average over the next years. This is quite bad
- TNK is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -17.54% yearly.
EPS Next Y-37.48%
EPS Next 2Y-23.78%
EPS Next 3Y-21.25%
EPS Next 5YN/A
Revenue Next Year-13.36%
Revenue Next 2Y-19.67%
Revenue Next 3Y-17.54%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.92, which indicates a very decent valuation of TNK.
- Based on the Price/Earnings ratio, TNK is valued a bit cheaper than the industry average as 79.71% of the companies are valued more expensively.
- TNK is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- TNK is valuated reasonably with a Price/Forward Earnings ratio of 10.32.
- Based on the Price/Forward Earnings ratio, TNK is valued a bit cheaper than the industry average as 78.74% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. TNK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
- TNK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TNK is cheaper than 79.71% of the companies in the same industry.
- TNK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.33 | ||
| EV/EBITDA | 4.73 |
4.3 Compensation for Growth
- TNK has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as TNK's earnings are expected to decrease with -21.25% in the coming years.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-23.78%
EPS Next 3Y-21.25%
5. Dividend
5.1 Amount
- TNK has a Yearly Dividend Yield of 1.65%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.73, TNK has a dividend in line with its industry peers.
- TNK's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
- On average, the dividend of TNK grows each year by 20.75%, which is quite nice.
- TNK has paid a dividend for at least 10 years, which is a reliable track record.
- TNK has decreased its dividend recently.
Dividend Growth(5Y)20.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- TNK pays out 21.29% of its income as dividend. This is a sustainable payout ratio.
DP21.29%
EPS Next 2Y-23.78%
EPS Next 3Y-21.25%
TEEKAY TANKERS LTD-CLASS A / TNK FAQ
What is the fundamental rating for TNK stock?
ChartMill assigns a fundamental rating of 6 / 10 to TNK.
What is the valuation status of TEEKAY TANKERS LTD-CLASS A (TNK) stock?
ChartMill assigns a valuation rating of 6 / 10 to TEEKAY TANKERS LTD-CLASS A (TNK). This can be considered as Fairly Valued.
How profitable is TEEKAY TANKERS LTD-CLASS A (TNK) stock?
TEEKAY TANKERS LTD-CLASS A (TNK) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for TNK stock?
The Price/Earnings (PE) ratio for TEEKAY TANKERS LTD-CLASS A (TNK) is 10.92 and the Price/Book (PB) ratio is 1.1.
What is the earnings growth outlook for TEEKAY TANKERS LTD-CLASS A?
The Earnings per Share (EPS) of TEEKAY TANKERS LTD-CLASS A (TNK) is expected to decline by -37.48% in the next year.