Investors should take notice of NYSE:TNK—it offers a great deal for the fundamentals it presents.

Last update: Feb 23, 2024

Our stock screening tool has pinpointed TEEKAY TANKERS LTD-CLASS A (NYSE:TNK) as an undervalued stock option. NYSE:TNK retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Assessment of NYSE:TNK

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:TNK has earned a 9 for valuation:

With a Price/Earnings ratio of 3.41, the valuation of TNK can be described as very cheap.
88.37% of the companies in the same industry are more expensive than TNK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.32, TNK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.58, the valuation of TNK can be described as very cheap.
Based on the Price/Forward Earnings ratio, TNK is valued cheaper than 92.09% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, TNK is valued rather cheaply.
87.91% of the companies in the same industry are more expensive than TNK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TNK is valued cheaply inside the industry as 91.63% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TNK may justify a higher PE ratio.
TNK's earnings are expected to grow with 24.46% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE:TNK

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TNK has achieved a 6:

Looking at the Return On Assets, with a value of 30.97%, TNK belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
Looking at the Return On Equity, with a value of 38.57%, TNK is in the better half of the industry, outperforming 79.53% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 27.92%, TNK belongs to the top of the industry, outperforming 88.84% of the companies in the same industry.
TNK's Profit Margin of 38.66% is fine compared to the rest of the industry. TNK outperforms 78.60% of its industry peers.
TNK's Profit Margin has improved in the last couple of years.
TNK has a better Operating Margin (40.88%) than 72.56% of its industry peers.
In the last couple of years the Operating Margin of TNK has grown nicely.

Health Analysis for NYSE:TNK

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:TNK, the assigned 9 reflects its health status:

An Altman-Z score of 5.60 indicates that TNK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.60, TNK belongs to the top of the industry, outperforming 91.63% of the companies in the same industry.
TNK has a debt to FCF ratio of 0.23. This is a very positive value and a sign of high solvency as it would only need 0.23 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.23, TNK belongs to the best of the industry, outperforming 89.77% of the companies in the same industry.
TNK has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
TNK's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. TNK outperforms 80.00% of its industry peers.
A Current Ratio of 3.58 indicates that TNK has no problem at all paying its short term obligations.
The Current ratio of TNK (3.58) is better than 86.05% of its industry peers.
A Quick Ratio of 3.18 indicates that TNK has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.18, TNK belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.

Assessing Growth Metrics for NYSE:TNK

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:TNK has earned a 8 for growth:

The Earnings Per Share has grown by an impressive 1127.48% over the past year.
The Earnings Per Share has been growing by 51.63% on average over the past years. This is a very strong growth
The Revenue has grown by 65.69% in the past year. This is a very strong growth!
Measured over the past years, TNK shows a quite strong growth in Revenue. The Revenue has been growing by 19.78% on average per year.
The Earnings Per Share is expected to grow by 29.29% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.63% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of TNK for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.