Teekay Corporation Ltd. Common Stock (TK)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $16 million in annual free cash flow (1.5% yield on market cap)
• Solid return on equity of 17.2% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility

AI Analysis

Teekay Corporation Ltd. Common Stock is a micro-cap energy company valued at $1.1 billion. The business generates $950 million in annual revenue with a 2.7% net margin and $16 million in free cash flow. From a quality standpoint, Teekay shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.9. On valuation, the stock is attractively valued at 11.1x earnings, with a modest 15% margin of safety vs Graham Number. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Teekay's consistent 17% ROE at just 11x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $16 million in annual free cash flow (1.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer