| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 34.24 | 235 |
| Intrinsic value (DCF) | 7.79 | -24 |
| Graham-Dodd Method | 0.87 | -92 |
| Graham Formula | n/a |
Teekay Corporation (NYSE: TK) is a leading provider of international crude oil and marine transportation services, operating a diversified fleet of approximately 55 vessels. Headquartered in Hamilton, Bermuda, the company specializes in ship-to-ship transfers, lightering, and offshore production services, catering to energy companies, oil traders, and government agencies worldwide. Founded in 1973, Teekay plays a critical role in the global energy supply chain, ensuring efficient and reliable transportation of oil and gas. With a strong presence in the Oil & Gas Midstream sector, Teekay leverages its operational expertise to serve high-demand markets, including major petroleum producers and consumers. The company’s strategic positioning in marine logistics and its asset-light approach enhance its resilience in volatile energy markets. Investors looking for exposure to maritime energy transportation should consider Teekay’s established market presence and niche service offerings.
Teekay Corporation presents a compelling investment case due to its stable cash flows, low beta (0.318), and strong liquidity position ($685M cash). The company’s net income of $133.8M and diluted EPS of $1.42 reflect operational efficiency, while manageable total debt ($65.6M) suggests a healthy balance sheet. However, exposure to oil price volatility and geopolitical risks in shipping routes may pose challenges. The $1 dividend per share offers income potential, but investors should monitor capital expenditures (-$70.5M) and global energy demand trends. Teekay’s niche in ship-to-ship transfers provides a competitive edge, but sector-wide competition and regulatory pressures remain key risks.
Teekay Corporation competes in the fragmented oil and gas marine transportation sector, differentiating itself through specialized ship-to-ship transfer services and a diversified fleet. Its competitive advantage lies in operational expertise, long-term contracts with energy majors, and a capital-efficient model. Unlike larger peers with massive fleets, Teekay focuses on high-margin niche services, reducing exposure to spot market volatility. However, its smaller scale limits economies of scale compared to giants like Frontline or Euronav. The company’s asset-light strategy mitigates cyclical risks but may constrain growth during market upswings. Regulatory compliance (e.g., IMO 2020 sulfur caps) is a strength, yet rising ESG pressures in shipping could increase costs. Teekay’s partnerships with oil traders and governments provide revenue stability, but competition from integrated logistics firms and regional players persists.