Teekay Stock Analysis, Valuation (NYSE:TK)

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$6.59 $0.04 (0.61%) TK stock closing price Sep 19, 2018 (Closing)

Take a look at Amigobulls Teekay stock analysis video. Our analyst opinion covering the buy and sell arguments for TK stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Teekay Corporation Stock Rating 1.7/5

Amigobulls TK stock analysis relies on business fundamentals such as Teekay revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for Teekay valuation analysis. Based on a company's historical fundamentals we arrive at Teekay stock rating which is indicative of the company's financial performance.

Should you buy TK stock?

  • When compared with the Transportation sector average PS ratio of 1.4, the price-to-sales ratio of 0.4 for TK stock is attractive.

Should you sell TK stock?

  • Teekay sales declined by -27.5% year on year in 2018-03.
  • Revenue declined at a CAGR of -1.9 over the last 5 years.
  • Teekay registered a negative operating margin of -3.25 (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Teekay had an average Net loss of -7.3%.
  • With a debt/equity ratio of 1.57, Teekay is highly leveraged in comparison to Transportation peers.
  • PE ratio is meaningless for TK stock as the company has losses.
  • The company has a negative Return on Invested Capital of -0.4, which is a red flag.
  • A negative ROE of -3.9 indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has a negative free cash flow margin of -34.3.

Comments on this video and Teekay stock

Investors can use Amigobulls Teekay stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Teekay revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Teekay stock.