By analyzing existing forward-looking signals between Teekay Shipping and Magellan, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Magellan with a short position in Teekay Shipping. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Teekay Shipping has an asset utilization ratio of 50.72 percent. This signifies that the company is making $0.51 for each dollar of assets. An increasing asset utilization means that Teekay Shipping Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Teekay or Teekay is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Teekay dividends
A dividend is the distribution of a portion of Teekay earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Teekay dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Teekay one year expected dividend income is about USD0.75 per share.
At this time, Teekay's
Dividend Yield is quite stable compared to the past year.
Dividend Paid And Capex Coverage Ratio is expected to rise to 65.22 this year, although the value of
Dividends Paid will most likely fall to about 60.4
M.
Investing in stocks that pay
dividends, such as stock of Teekay, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Teekay must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Teekay. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
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.
Correlation Between Teekay and Teekay Tankers
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Teekay together with similar or unrelated positions with a negative correlation. For example, you can also add Teekay Tankers to your portfolio. If Teekay Tankers is not perfectly correlated to Teekay it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Teekay, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Teekay and Teekay Tankers in your portfolio? Please note if you are using this as a pair-trade strategy between Teekay and Teekay Tankers, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between TK and TNK for more information.
A Deeper Perspective On Teekay
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Teekay Shipping revenue. Based on the latest financial disclosure, Teekay Shipping Corp reported 1.82
B of revenue. This is 96.3% lower than that of the Energy sector and 84.51% lower than that of the
Oil & Gas Midstream industry. The revenue for all United States stocks is 80.71% higher than that of Teekay Shipping. As for Magellan Midstream we see revenue of 2.43
B, which is 79.32% lower than that of the Oil & Gas Midstream
| TK | 1.82 Billion | 13.3 |
| Sector | 9.43 Billion | 68.94 |
| MMP | 2.43 Billion | 17.76 |
Teekay Shipping bad stories are not so bad
Teekay Shipping recent standard deviation hikes over 4.15. Teekay Shipping Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Teekay Shipping Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Teekay Shipping future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Teekay Shipping's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Teekay Shipping's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Takeaway on Teekay Shipping Investment
Although other companies in the oil & gas midstream industry are either recovering or due for a correction, Teekay Shipping may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 13th of May 2021, our research shows that Teekay Shipping is a rather relatively risky investment opportunity with a
average odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be
undervalued. However, our concluding 90 days buy-or-sell advice on the firm is
Strong Sell.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Teekay. Please refer to our
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