Teekay Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;'>TK</div>
TK -- USA Stock  

USD 2.23  0.04  1.83%

Teekay is scheduled to announce its earnings tomorrow. As many millenniums are trying to avoid energy space, it makes sense to examine Teekay a little further and try to understand its current market patterns. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a month ago
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Should I exit my Teekay (NYSE:TK) holdings?
Teekay reports 4.7 B of total liabilities with total debt to equity ratio (D/E) of 1.89, which is normal for its line of buisiness. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Teekay has an asset utilization ratio of 56.58 percent. This signifies that the company is making $0.57 for each dollar of assets. An increasing asset utilization means that Teekay is more efficient with each dollar of assets it utilizes for everyday operations.
Teekay financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Teekay, including all of Teekay's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Teekay assets, the company is considered highly leveraged. Understanding the composition and structure of overall Teekay debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is Teekay's Liquidity

Teekay financial leverage refers to using borrowed capital as a funding source to finance Teekay ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Teekay financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Teekay's total debt and its cash.

How Teekay utilizes its cash?

To perform a cash flow analysis of Teekay, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Teekay is receiving and how much cash it distributes out in a given period. The Teekay cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking down Teekay Indicators

The big decline in price over the last few months for Teekay created some momentum for traders as it was traded today as low as 2.36 and as high as 2.54 per share. The company executives failed to add value to investors and positioning the company supply of money to exploit market volatility in July. However, diversifying your holdings with Teekay or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.55. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Teekay partners.

Our perspective of the recent Teekay plunge

Teekay recent standard deviation hikes over 4.63. As of the 1st of August, Teekay has the coefficient of variation of (660.62), and Risk Adjusted Performance of (0.24). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Teekay, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Teekay, which can be compared to its competition. Please validate Teekay information ratio, as well as the relationship between the potential upside and kurtosis to decide if Teekay is priced more or less accurately, providing market reflects its prevalent price of 2.38 per share. Please also confirm Teekay total risk alpha, which is currently at (1.02) to double-check the company can sustain itself at a future point.

Our Conclusion on Teekay

Although some other companies in the oil & gas midstream industry are either recovering or due for a correction, Teekay may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Teekay valuation and our trade advice on Teekay is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Teekay.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Teekay. Please refer to our Terms of Use for any information regarding our disclosure principles.

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