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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 44.6GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
226.3%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, TEEKAY CORP LTD (TK) receives a "Hold" rating with a composite score of 59.9/100, ranked #125 out of 4446 stocks. Key factor scores: Quality 45/100, Value 98/100, Momentum 71/100. This is quantitative analysis only — not investment advice.
TEEKAY CORP LTD (TK) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does TEEKAY CORP LTD Do?
Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company provides a full suite of ship-to-ship transfer services in the oil, gas, and dry bulk industries; lightering and lightering support; and operational and maintenance marine, as well as offshore production services. As of March 1, 2022, it operated a fleet of approximately 55 vessels. The company primarily serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda. TEEKAY CORP LTD (TK) is classified as a small-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Kenneth Hvid and employs approximately 2,500 people. With a market capitalization of $1.1B, TK is one of the notable companies in the Industrials sector.
TEEKAY CORP LTD (TK) Stock Rating — Hold (April 2026)
As of April 2026, TEEKAY CORP LTD receives a Hold rating with a composite score of 59.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TK ranks #125 out of 4,446 stocks in our coverage universe. Within the Industrials sector, TEEKAY CORP LTD ranks #21 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TK Stock Price and 52-Week Range
TEEKAY CORP LTD (TK) currently trades at $12.33. The stock lost $0.23 (1.8%) in the most recent trading session. The 52-week high for TK is $12.96, which means the stock is currently trading -4.9% from its annual peak. The 52-week low is $5.65, putting the stock 118.2% above its annual trough. Recent trading volume was 373K shares, suggesting relatively thin trading activity.
Is TK Overvalued or Undervalued? — Valuation Analysis
TEEKAY CORP LTD (TK) carries a value factor score of 98/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 8.54x, compared to the Industrials sector average of 28.33x — a discount of 70%. The price-to-book ratio stands at 1.52x, versus the sector average of 2.23x. The price-to-sales ratio is 0.22x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, TK trades at 0.21x EV/EBITDA, versus 5.70x for the sector.
Based on these multiples, TEEKAY CORP LTD appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
TEEKAY CORP LTD Profitability — ROE, Margins, and Quality Score
TEEKAY CORP LTD (TK) earns a quality factor score of 45/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 226.3%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 74.6% versus the sector average of 3.3%.
On a margin basis, TEEKAY CORP LTD reports gross margins of 66.8%, compared to 35.8% for the sector. The operating margin is 29.9% (sector: 6.2%). Net profit margin stands at 32.9%, versus 3.9% for the average Industrials stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
TK Debt, Balance Sheet, and Financial Health
TEEKAY CORP LTD has a debt-to-equity ratio of 0.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 6.99x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $685M.
TK has a beta of 0.47, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for TEEKAY CORP LTD is 71/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
TEEKAY CORP LTD Revenue and Earnings History — Quarterly Trend
In TTM 2026, TEEKAY CORP LTD reported revenue of $1.22B and earnings per share (EPS) of $1.47. Net income for the quarter was $402M. Gross margin was 66.8%. Operating income came in at $365M.
In FY 2024, TEEKAY CORP LTD reported revenue of $1.22B and earnings per share (EPS) of $1.47. Net income for the quarter was $402M. Gross margin was 66.8%. Revenue grew -16.7% year-over-year compared to FY 2023. Operating income came in at $365M.
In FY 2023, TEEKAY CORP LTD reported revenue of $1.46B and earnings per share (EPS) of $1.59. Net income for the quarter was $517M. Gross margin was 67.6%. Revenue grew 23.1% year-over-year compared to FY 2022. Operating income came in at $532M.
In FY 2022, TEEKAY CORP LTD reported revenue of $1.19B and earnings per share (EPS) of $0.77. Net income for the quarter was $189M. Gross margin was 58.4%. Revenue grew 74.4% year-over-year compared to FY 2021. Operating income came in at $246M.
Over the past 8 quarters, TEEKAY CORP LTD has experienced revenue contraction from $1.73B to $1.22B. Investors analyzing TK stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TK Dividend Yield and Income Analysis
TEEKAY CORP LTD (TK) does not currently pay a dividend. This is common among smaller companies in the Transportation industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
TK Momentum and Technical Analysis Profile
TEEKAY CORP LTD (TK) has a momentum factor score of 71/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 56/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 14/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TK vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing TK against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TK vs S&P 500 (SPY) comparison to assess how TEEKAY CORP LTD stacks up against the broader market across all factor dimensions.
TK Next Earnings Date
No upcoming earnings date has been announced for TEEKAY CORP LTD (TK) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TK? — Investment Thesis Summary
TEEKAY CORP LTD presents a balanced picture with arguments on both sides. The value score of 98/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 71/100, suggesting the trend favors buyers. Low volatility (stability score 71/100) reduces downside risk.
In summary, TEEKAY CORP LTD (TK) earns a Hold rating with a composite score of 59.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TK stock.
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Institutional Research Dossier
TEEKAY CORP LTD (TK) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We initiate coverage of Teekay Corporation (TK) with a Buy rating. This rating is primarily driven by the company's compelling valuation, strong profitability metrics, and a deleveraged balance sheet. Teekay's current market valuation appears significantly undervalued compared to its peers and historical performance, presenting a potentially attractive entry point for investors.
The most critical takeaway is the stark contrast between Teekay's financial performance and its valuation. While the company boasts impressive margins, substantial free cash flow, and a debt-free balance sheet, its valuation multiples remain depressed relative to the broader industrials sector. This discrepancy suggests a market inefficiency that could be exploited, offering substantial upside potential as the market recognizes the company's intrinsic value.
Business Strategy & Overview
Teekay Corporation operates in the marine transportation sector, providing services primarily related to the oil and gas industry. The company's core business involves ship-to-ship transfer services, lightering, and operational and maintenance marine services. These services are crucial for energy companies, oil traders, and other entities involved in the global transportation of crude oil and related products. Teekay's strategy appears to be focused on maintaining a lean operational structure and capitalizing on its expertise in specialized marine services.
Teekay generates revenue through contracts with its clients, typically based on time charter or voyage charter agreements. Time charters provide a fixed daily rate for the use of the vessel over a specified period, while voyage charters are based on a per-voyage rate. The company's profitability is influenced by factors such as vessel utilization rates, operating expenses, and prevailing market rates for marine transportation services. Given the cyclical nature of the shipping industry, Teekay's revenue and earnings can be subject to fluctuations based on supply and demand dynamics.
A key aspect of Teekay's business model is its focus on operational efficiency and cost management. The company aims to optimize vessel utilization, control operating expenses, and maintain a modern and well-maintained fleet. This approach is essential for maximizing profitability and maintaining a competitive edge in the marine transportation sector. Furthermore, Teekay's strategic positioning within specialized segments of the market, such as ship-to-ship transfer services, allows it to differentiate itself from larger, more diversified shipping companies.
The industry context for Teekay is characterized by global trade patterns, energy demand, and regulatory requirements. The demand for marine transportation services is closely tied to the global economy and the demand for oil and gas. Regulatory factors, such as environmental regulations and safety standards, also play a significant role in shaping the industry landscape. Teekay must navigate these factors effectively to maintain its competitive position and ensure compliance with applicable regulations.
Execution Benchmarks audit
Gross Margin
Core pricing power
66.8%
Sector: 35.8%
+87% VS SCTR
Economic Moat Analysis
Teekay's economic moat appears to be narrow. While the company possesses some advantages in its specialized service offerings, the marine transportation industry is generally characterized by intense competition and limited differentiation. The primary factors that could contribute to a narrow moat for Teekay include its expertise in ship-to-ship transfer services and its established relationships with key clients.
Switching costs in the marine transportation industry are relatively low. Clients can easily switch between different service providers based on price, availability, and service quality. This limits the ability of any single company to command premium pricing or retain clients over the long term. While Teekay's specialized expertise may create some stickiness with certain clients, it is unlikely to be a significant barrier to entry for competitors.
Intangible assets, such as brand reputation or proprietary technology, are not a major source of competitive advantage in the marine transportation industry. While Teekay has a long history and established reputation, these factors are not sufficient to create a wide moat. The industry is primarily driven by price and operational efficiency, rather than brand recognition or technological innovation.
Cost advantages could potentially contribute to a narrow moat for Teekay. The company's focus on operational efficiency and cost management may allow it to offer competitive pricing while maintaining healthy margins. However, cost advantages are often difficult to sustain over the long term, as competitors can adopt similar strategies or benefit from economies of scale. Furthermore, fluctuations in fuel prices and other operating expenses can impact the cost structure of all players in the industry.
Efficient scale is not a significant factor in the marine transportation industry. While larger companies may benefit from economies of scale in certain areas, such as vessel procurement and insurance, the industry is not dominated by a few large players. There are numerous small and medium-sized companies that compete effectively in various segments of the market. This limits the ability of any single company to achieve a dominant market position based on scale alone.
Financial Health & Profitability
Teekay's financial health presents a mixed picture. The company's recent profitability metrics are exceptionally strong, with a net margin of 32.9% and an ROE of 226.3%, significantly outperforming the industrials sector averages of 3.7% and 9.2%, respectively. This indicates efficient capital utilization and strong earnings generation. However, the historical financial data reveals considerable volatility in revenue and earnings, reflecting the cyclical nature of the marine transportation industry.
The company's balance sheet is a notable strength. With zero total debt and a substantial cash balance of $685.33 million, Teekay possesses significant financial flexibility. This strong liquidity position allows the company to weather industry downturns, invest in growth opportunities, and potentially return capital to shareholders. The absence of debt also reduces financial risk and enhances the company's ability to navigate uncertain economic conditions.
Examining the quarterly financial history, we observe a significant turnaround in Teekay's performance in recent years. After periods of losses and negative free cash flow in the past, the company has achieved consistent profitability and positive free cash flow generation. This improvement is attributable to a combination of factors, including favorable market conditions, cost management initiatives, and strategic asset sales. The free cash flow generation of $298.40M in the latest fiscal year further strengthens the company's financial position.
The gross margin of 66.8% and operating margin of 29.9% are substantially higher than the sector averages of 35.8% and 6.2%, respectively. This suggests that Teekay has a competitive advantage in terms of cost control and operational efficiency. However, it is important to note that these margins may be subject to fluctuations based on market conditions and industry dynamics. The revenue growth is not available, so it's difficult to assess the growth trajectory of the company.
While the current financial health is robust, it is crucial to consider the historical volatility and cyclical nature of the industry. Teekay's ability to sustain its current level of profitability and free cash flow generation will depend on its ability to navigate future market challenges and maintain its competitive edge. The company's strong balance sheet provides a solid foundation for future growth and stability.
Valuation Assessment
Teekay's valuation appears significantly undervalued based on several key metrics. The company's P/E ratio of 7.8x is substantially lower than the industrials sector average of 27.7x, suggesting that the market is not fully recognizing the company's earnings potential. Similarly, the EV/EBITDA ratio of 0.2x is dramatically lower than the sector average of 5.7x, indicating that the company is undervalued relative to its earnings before interest, taxes, depreciation, and amortization.
The company's strong free cash flow generation further supports the undervaluation thesis. With a free cash flow of $298.40 million and a market cap of $997.95 million, Teekay has a high free cash flow yield. This indicates that the company is generating a significant amount of cash relative to its market value, which could be used to fund growth initiatives, return capital to shareholders, or reduce debt (although it already has no debt).
Comparing Teekay's valuation to its historical performance, we observe that the company's current multiples are below its historical averages. This suggests that the market is discounting the company's future prospects, potentially due to concerns about the cyclical nature of the industry or uncertainty about future growth. However, given the company's strong balance sheet and recent profitability, this discounting may be unwarranted.
While a direct comparison to peers is difficult due to the specialized nature of Teekay's business, the company's valuation multiples are generally lower than those of other companies in the marine transportation sector. This could be due to a variety of factors, including differences in business models, growth prospects, and risk profiles. However, the magnitude of the valuation gap suggests that Teekay may be an attractive investment opportunity.
Overall, Teekay's valuation appears to be a compelling reason to consider investing in the company. The low P/E ratio, low EV/EBITDA ratio, and high free cash flow yield all point to a potential undervaluation. While there are risks associated with the cyclical nature of the industry, the company's strong balance sheet and recent profitability provide a solid foundation for future growth and value creation.
Risk & Uncertainty
Teekay faces several specific risks that could impact its business and financial performance. One of the primary risks is the cyclical nature of the marine transportation industry. Demand for marine transportation services is closely tied to global economic growth and the demand for oil and gas. Economic downturns or declines in energy demand could lead to lower vessel utilization rates and reduced revenue for Teekay.
Another significant risk is competition from other marine transportation companies. The industry is highly competitive, with numerous players vying for market share. Increased competition could lead to lower pricing and reduced profitability for Teekay. The company must effectively differentiate itself from its competitors through its specialized service offerings and operational efficiency.
Regulatory risks also pose a challenge for Teekay. The marine transportation industry is subject to a variety of environmental regulations and safety standards. Changes in these regulations could increase compliance costs and impact the company's profitability. Teekay must stay abreast of regulatory developments and ensure that its operations comply with all applicable requirements.
Concentration risk is another factor to consider. Teekay's revenue may be concentrated among a few key clients. The loss of one or more of these clients could have a material adverse effect on the company's financial performance. Teekay must diversify its client base and maintain strong relationships with its existing clients to mitigate this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTeekay's extremely low valuation multiples (P/E and EV/EBITDA) compared to the sector suggest significant upside potential as the market recognizes its true value.
BULL VIEWThe company's debt-free balance sheet and strong free cash flow generation provide financial flexibility for growth initiatives and shareholder returns.
BULL VIEWTeekay's specialized service offerings in ship-to-ship transfer services provide a competitive advantage and contribute to higher margins compared to peers.
The Bear Case
BEAR VIEWThe cyclical nature of the marine transportation industry exposes Teekay to significant revenue and earnings volatility, making it difficult to predict future performance.
BEAR VIEWIntense competition in the industry could lead to pricing pressures and reduced profitability for Teekay, eroding its competitive advantage.
BEAR VIEWA slowdown in global economic growth or a decline in oil and gas demand could negatively impact Teekay's vessel utilization rates and revenue.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TK and 4,400+ other equities.
TEEKAY CORP LTD exhibits a 64% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
74.6%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
66.8%
Sector: 35.8%
Operating Margin
Core business profitability
29.9%
Sector: 6.2%
Net Margin
Bottom-line profitability
32.9%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
