NABORS INDUSTRIES LTD (NBR)

BMG6359F1370 - Common Stock

68.62  +1.07 (+1.58%)

Fundamental Rating

2

Overall NBR gets a fundamental rating of 2 out of 10. We evaluated NBR against 65 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of NBR have multiple concerns. NBR is valued correctly, but it does not seem to be growing.



3

1. Profitability

1.1 Basic Checks

NBR had negative earnings in the past year.
NBR had a positive operating cash flow in the past year.
In the past 5 years NBR always reported negative net income.
Each year in the past 5 years NBR had a positive operating cash flow.

1.2 Ratios

NBR's Return On Assets of -2.18% is on the low side compared to the rest of the industry. NBR is outperformed by 73.85% of its industry peers.
NBR has a worse Return On Equity (-35.41%) than 92.31% of its industry peers.
NBR has a Return On Invested Capital (5.10%) which is in line with its industry peers.
Industry RankSector Rank
ROA -2.18%
ROE -35.41%
ROIC 5.1%
ROA(3y)-6.37%
ROA(5y)-9.06%
ROE(3y)-70.55%
ROE(5y)-64.36%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

The Operating Margin of NBR (8.82%) is comparable to the rest of the industry.
NBR has a Gross Margin of 40.38%. This is in the better half of the industry: NBR outperforms 78.46% of its industry peers.
In the last couple of years the Gross Margin of NBR has grown nicely.
Industry RankSector Rank
OM 8.82%
PM (TTM) N/A
GM 40.38%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.52%
GM growth 5Y2.73%

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NBR is destroying value.
The number of shares outstanding for NBR has been increased compared to 1 year ago.
NBR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NBR has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.46, we must say that NBR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NBR (0.46) is worse than 81.54% of its industry peers.
NBR has a debt to FCF ratio of 39.12. This is a negative value and a sign of low solvency as NBR would need 39.12 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 39.12, NBR is doing worse than 67.69% of the companies in the same industry.
A Debt/Equity ratio of 8.77 is on the high side and indicates that NBR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 8.77, NBR is doing worse than 92.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 8.77
Debt/FCF 39.12
Altman-Z 0.46
ROIC/WACC0.74
WACC6.86%

2.3 Liquidity

A Current Ratio of 1.78 indicates that NBR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.78, NBR perfoms like the industry average, outperforming 47.69% of the companies in the same industry.
NBR has a Quick Ratio of 1.53. This is a normal value and indicates that NBR is financially healthy and should not expect problems in meeting its short term obligations.
NBR has a Quick ratio of 1.53. This is comparable to the rest of the industry: NBR outperforms 53.85% of its industry peers.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.53

3

3. Growth

3.1 Past

NBR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.75%.
Looking at the last year, NBR shows a small growth in Revenue. The Revenue has grown by 3.37% in the last year.
Measured over the past years, NBR shows a decrease in Revenue. The Revenue has been decreasing by -0.34% on average per year.
EPS 1Y (TTM)7.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-210.46%
Revenue 1Y (TTM)3.37%
Revenue growth 3Y12.1%
Revenue growth 5Y-0.34%
Sales Q2Q%-4.52%

3.2 Future

The Earnings Per Share is expected to grow by 60.12% on average over the next years. This is a very strong growth
Based on estimates for the next years, NBR will show a small growth in Revenue. The Revenue will grow by 4.78% on average per year.
EPS Next Y-48.66%
EPS Next 2Y82.79%
EPS Next 3Y60.12%
EPS Next 5YN/A
Revenue Next Year0.72%
Revenue Next 2Y4.67%
Revenue Next 3Y4.78%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

NBR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 9.92, the valuation of NBR can be described as reasonable.
NBR's Price/Forward Earnings is on the same level as the industry average.
NBR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 19.93.
Industry RankSector Rank
PE N/A
Fwd PE 9.92

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NBR is valued cheaper than 93.85% of the companies in the same industry.
NBR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NBR is cheaper than 70.77% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.43
EV/EBITDA 3.09

4.3 Compensation for Growth

A more expensive valuation may be justified as NBR's earnings are expected to grow with 60.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y82.79%
EPS Next 3Y60.12%

0

5. Dividend

5.1 Amount

No dividends for NBR!.
Industry RankSector Rank
Dividend Yield N/A

NABORS INDUSTRIES LTD

NYSE:NBR (6/12/2024, 1:32:03 PM)

68.62

+1.07 (+1.58%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap734.23M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 9.92
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.18%
ROE -35.41%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.82%
PM (TTM) N/A
GM 40.38%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 8.77
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.78
Quick Ratio 1.53
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.75%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-48.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.37%
Revenue growth 3Y12.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y