Company Overview
Teekay Corporation Ltd. specializes in the provision of crude oil marine transportation and a diverse array of other marine services on a global scale. Operating within the Energy sector, specifically the Oil & Gas Midstream industry, the company manages the logistics of moving energy resources through its specialized fleet. The enterprise maintains a substantial operational footprint with a total market capitalization of $1.02B and an annual revenue stream of $949.52M, supported by a workforce of 2130 employees. These valuation metrics and revenue figures indicate that the company holds a significant, albeit mid-tier, position within the midstream energy landscape, reflecting a solid operational base but not dominating the entire market space.
Financial Health
The company generated revenue of $949.52M over the trailing twelve months, resulting in a net income of $98.11M and an EBITDA of $271.56M. The substantial gap between the $949.52M revenue and the $98.11M net income reveals a cost structure where operating expenses, including depreciation and amortization, consume a significant portion of gross revenue before reaching the bottom line. Free cash flow stands at $15.84M, which suggests limited financial flexibility for aggressive capital expenditure or large-scale acquisitions in the current period. Profitability is further contextualized by three key margin metrics: a gross margin of 36.7%, an operating margin of 26.8%, and a profit margin of 10.3%, indicating that while the company retains over a third of revenue as gross profit, significant operational costs reduce the final profit available to shareholders. Liquidity and leverage are defined by a cash balance of $972.73M against a debt obligation of $46.38M, with a debt-to-equity ratio of 2.14, suggesting a balance sheet that is moderately leveraged relative to its equity base. The current ratio of 8.89 indicates an exceptionally strong position in short-term liquidity, as the company holds nearly nine times the value of its current liabilities in current assets. Efficiency and asset utilization are highlighted by a return on equity of 17.2% and a return on assets of 5.7%, showing that management generates a robust return on the capital invested by shareholders relative to the total asset base.
Valuation Assessment
Valuation multiples for the company include a trailing P/E ratio of 10.42 and a forward P/E of 27.37. The disparity between these two figures, where the forward multiple is significantly higher, implies that the market expects earnings to grow substantially in the future or that current earnings are temporarily suppressed by specific operational factors. The price-to-book ratio is recorded at 1.40, indicating that the market values the company at 1.4 times its book value, suggesting a slight premium over the net asset value. Alternative valuation perspectives are provided by a price-to-sales ratio of 1.08 and an EV/EBITDA of 5.56, which suggests the company is priced at roughly one dollar of revenue for every dollar of sales and offers a relatively low multiple relative to its earnings before interest, taxes, depreciation, and amortization. Price action over the past year has seen the stock trade between a 52-week high of $13.76 and a 52-week low of $5.65. Without the specific current share price provided in the data, the exact percentage distance from these bounds cannot be calculated, but the range establishes the historical volatility envelope within which the stock has operated. Risk characteristics are quantified by a beta of 0.06, which indicates that the stock's price volatility is extremely low relative to the broader market, moving in a manner largely independent of general market fluctuations.
Growth & Income
Recent performance data shows a revenue growth rate of -5.3% year over year while earnings growth stands at 30.2% year over year. This divergence implies that earnings are growing at a much faster pace than revenue, likely driven by margin expansion, cost reductions, or operational efficiencies rather than top-line volume increases. Regarding income distribution, the company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Consequently, the company reinvests all of its earnings back into the business operations rather than distributing cash to shareholders. The overall growth and income profile is characterized by negative revenue growth contrasted with strong earnings expansion and a complete absence of dividend income, reflecting a strategy focused on internal reinvestment and efficiency over shareholder yield.