TK — Teekay Corp

Shipping holding company with 38.2% ownership in Teekay Tankers (TNK). Consolidated tanker operations. Has been simplifying structure. | Energy — Tanker Shipping / Holding Company | AGI Score: 4/10 | Analysis date: 2026-03-13

Why are we looking at this? — Holding Company Discount — Sum of Parts

P/TB of 0.52x — the market values TK at half its book value. TK owns 38.2% of Teekay Tankers (TNK) which itself is publicly traded. This creates a "sum of parts" opportunity: if TK's stake in TNK alone is worth more than TK's market cap, everything else is free. Holding company discount + zero debt + $685M cash.

$10.99
Stock Price
$937M
Market Cap
1.43x
Price / Book
0.48x
Price / Tangible Book
12.3x
P/E (trailing)
25.6x
P/E (forward)
$1.2B
Revenue (LTM)
$402M
Net Income
None
Dividend Yield
Stock Price — TK

1. The Business

Shipping company holding 38.2% ownership in publicly-traded subsidiary Teekay Tankers (oil tanker operator), with executive officers shared between parent and subsidiary; filing excerpt focuses on ownership structure, related party transactions, and management agreements rather than core operations.

Key Stats

SectorEnergy
IndustryOil & Gas Midstream
Employees2,330
ROE14.2%
ROA4.9%
Gross Margin33.0%
Operating Margin17.4%
Profit Margin8.0%

Market Data

52-Week Range$5.65 — $13.76
Beta0.062
Avg Volume594,466
Short Ratio4.45
EV / EBITDA5.5x
Analyst Target$None (none)
Float Shares53M
Payout Ratio0.0%

2. Balance Sheet

Balance Sheet Composition

ItemValue% of AssetsNotes
ASSETS ($2.2B)
PP&E (net)$1.1B52.6%Physical assets
Cash & Equivalents$685M31.8%
Goodwill$2M0.1%Intangible — scrutinize
Other Intangibles$307K0.0%
Other Assets$333M15.5%Receivables, investments, etc.
LIABILITIES
Long-Term Debt$0
Other Liabilities$218M10.1%
EQUITY
Stockholders' Equity$1.9B89.9%
Tangible Book Value$1.9BEquity minus goodwill & intangibles
Tangible Book / Share$22.66vs price $10.99

3. Financial History

Metric201920202021202220232024
Revenue$1.9B$1.8B$683M$1.2B$1.5B$1.2B
Net Income-$149M$91M-$3M$189M$517M$402M
Total Assets$8.1B$6.9B$6.5B$2.2B$2.2B$2.2B
Equity$2.6B$2.5B$2.4B$1.4B$1.8B$1.9B
Long-Term Debt$2.3B$1.8B$416M$0$0
Cash$353M$349M$109M$310M$480M$685M
OCF$383M$984M$78M$199M$633M$467M
PP&E$5.0B$4.5B$925M$430M$929M$1.1B
Goodwill$38M$38M$2M$2M$2M$2M
Shares (Diluted)101M101M102M104M97M93M

4. Shares Outstanding & Buybacks

PeriodShares (Diluted)Change
2019-12-31100,719,224
2020-12-31101,053,095+0.3%
2021-12-31102,148,629+1.1%
2022-12-31104,415,597+2.2%
2023-12-3196,644,969-7.4%
2024-12-3193,275,031-3.5%
Total Change-7.4%

Significant buyback activity. Share count declining 7% over the period. This mechanically increases EPS and book value per share even with no underlying growth.

5. 10x Entry Price Analysis

Working Backwards: What Entry Price Gives 10x?

Current EPS: $4.31 | Current Book/Share: $20.75 | Current Price: $10.99

Scenario7yr Future PriceEntry for 10xvs CurrentAssumptions
Conservative$88.55$8.86+24% below8% EPS growth, 12x exit P/E
Bull Case$171.80$17.18+36% above15% EPS growth, 15x exit P/E
Buyback Only$53.48$5.35+106%No revenue growth, buybacks continue at current rate, 12x P/E

6. AGI Impact Assessment (Score: 4/10)

Demand Boost2/10How much AGI increases demand for this company's products
Margin Expansion5/10How much AGI reduces costs / expands margins
Strategic Assets4/10Unique assets that become more valuable with AGI
Disruption Risk3/10Risk that AGI disrupts the core business model
Innovation Risk4/10Risk of being out-innovated by AGI-native competitors
Overall AGI Score4/10Category: minimal_impact

Reasoning: Limited operational detail in filing excerpt makes assessment difficult. Assuming traditional tanker shipping business: AGI could automate some navigation, route optimization, and fleet management, reducing crew costs. Demand for oil transportation depends on energy markets - AGI could accelerate renewables transition (reducing oil demand) or increase overall energy consumption. Strategic assets (vessel ownership, contracts) have value but face long-term secular pressure from energy transition. Innovation risk exists if AGI accelerates battery/hydrogen shipping or onshore production reducing transport needs. Conservatively scored as minimal net impact due to insufficient business description and conflicting AGI forces on shipping demand.

7. Bull & Bear Cases

Bull Case

  • Trading at 0.52x book — massive discount for what is essentially a holding company
  • ZERO long-term debt since 2022 — clean balance sheet
  • $685M cash on $937M market cap — 73% of market cap is cash
  • 38.2% stake in publicly traded TNK — value is observable and verifiable
  • Sum of parts likely exceeds market cap significantly

Bear Case

  • Holding company discount is common and may persist indefinitely
  • Cannot force liquidation or value realization
  • Management has limited track record of returning cash to shareholders
  • Tanker market is cyclical — TNK stake value fluctuates with charter rates
  • Complex corporate structure with shared management creates governance concerns

8. Initial Assessment

Summary

TK (Teekay Corp) trades at 1.43x book value (0.48x tangible book) with $402M net income on a $937M market cap (42.9% earnings yield). ROE of 14.2%. Shares have declined 7% over the measurement period through buybacks.

Verdict: INTERESTING — Holding Company Discount Play. 73% of market cap is cash ($685M cash on $937M market cap). Zero debt since 2022. The 38.2% stake in publicly traded TNK makes valuation straightforward. If TNK trades at, say, $60/share with ~100M shares, TK's 38.2% stake = ~$2.3B. Plus $685M cash = ~$3B value vs $937M market cap. That's a 69% discount. The problem: holding company discounts exist for a reason (governance, lack of catalysts). But at 0.52x book with net cash, the floor is very high. Entry zone: $8-10 (you're essentially getting the TNK stake at a >60% discount).

Data sources: SEC EDGAR XBRL (CIK 911971), yfinance, 10-K filing, AGI scoring framework. Analysis date: 2026-03-13.