Will Teekay Shipping (NYSE:TK) recent volatility spike continue?
 | By Vlad Skutelnik | Macroaxis Story |
39% of stocks are less risky than Teekay on the basis of their historical return distribution, and some 85% of all equities are expected to be superior in generating returns on investments over the next 90 days. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to examine the risk of investing in Teekay Shipping Corp. What exactly are Teekay Shipping shareholders getting in April? The recent above-average Teekay Shipping's volatility may impact the value of the stock as we project Teekay Shipping as currently undervalued. The real value, according to our calculations, is approaching 4.74 per share.
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Reviewed by Michael Smolkin
Teekay Shipping Corp is active under Energy sector as part of Oil & Gas Midstream industry. Volatility is a rate at which the price of Teekay or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Teekay may increase or decrease. In other words, similar to Teekay's beta indicator, it measures the risk of Teekay and helps estimate the fluctuations that may happen in a short period of time. So if prices of Teekay fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. 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. Financial leverage can amplify the potential profits to Teekay's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Teekay's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Teekay's total debt and its cash.
Teekay Gross Profit
Teekay Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Teekay previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Teekay Gross Profit growth over the last 10 years. Please check Teekay's gross profit and other fundamental indicators for more details.
Teekay Volatility Drivers
Teekay unsystematic risk is unique to Teekay and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Teekay you can also buy Teekay Tankers. You can also mitigate this risk by investing in the energy sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Teekay important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Teekay income statement and balance sheet. Here are more details about Teekay volatility.Click cells to compare fundamentals
A Deeper Perspective On Teekay
The entity generated the yearly revenue of 1.82 B. Annual Net Loss to common stockholders was (82.93 M) with gross profit of 820.95 M.
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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 Vlad Skutelnik do not own shares of Teekay. Please refer to our Terms of Use for any information regarding our disclosure principles.