NABORS INDUSTRIES LTD (NBR) Stock Fundamental Analysis
USA - NYSE:NBR - BMG6359F1370 - Common Stock
51.55 USD
-0.09 (-0.17%)
51.55 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to NBR. NBR was compared to 60 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of NBR have multiple concerns. NBR is valued expensive and it does not seem to be growing.
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.
NBR had negative earnings in each of the past 5 years.
In the past 5 years NBR always reported a positive cash flow from operatings.
1.2 Ratios
NBR has a Return On Assets of -2.74%. This is in the lower half of the industry: NBR underperforms 78.33% of its industry peers.
The Return On Equity of NBR (-44.87%) is worse than 88.33% of its industry peers.
NBR's Return On Invested Capital of 4.14% is on the low side compared to the rest of the industry. NBR is outperformed by 63.33% of its industry peers.
NBR had an Average Return On Invested Capital over the past 3 years of 3.54%. This is below the industry average of 7.82%.
The last Return On Invested Capital (4.14%) for NBR is above the 3 year average (3.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.74% | ||
| ROE | -44.87% | ||
| ROIC | 4.14% |
ROA(3y)-4.38%
ROA(5y)-7.78%
ROE(3y)-88.52%
ROE(5y)-87.38%
ROIC(3y)3.54%
ROIC(5y)N/A
1.3 Margins
NBR has a Operating Margin of 7.56%. This is comparable to the rest of the industry: NBR outperforms 45.00% of its industry peers.
NBR has a better Gross Margin (40.56%) than 81.67% of its industry peers.
In the last couple of years the Gross Margin of NBR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.56% | ||
| PM (TTM) | N/A | ||
| GM | 40.56% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.82%
GM growth 5Y2.06%
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.
The number of shares outstanding for NBR has been increased compared to 5 years ago.
The debt/assets ratio for NBR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.40, we must say that NBR is in the distress zone and has some risk of bankruptcy.
NBR's Altman-Z score of 0.40 is on the low side compared to the rest of the industry. NBR is outperformed by 75.00% of its industry peers.
A Debt/Equity ratio of 8.68 is on the high side and indicates that NBR has dependencies on debt financing.
NBR has a Debt to Equity ratio of 8.68. This is amonst the worse of the industry: NBR underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.4 |
ROIC/WACC0.53
WACC7.82%
2.3 Liquidity
NBR has a Current Ratio of 1.79. This is a normal value and indicates that NBR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NBR (1.79) is worse than 61.67% of its industry peers.
NBR has a Quick Ratio of 1.63. 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 (1.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
NBR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.78%.
The Revenue has been growing slightly by 6.52% in the past year.
The Revenue has been decreasing by -0.76% on average over the past years.
EPS 1Y (TTM)-4.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-122.41%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y13.25%
Revenue growth 5Y-0.76%
Sales Q2Q%10.07%
3.2 Future
The Earnings Per Share is expected to grow by 18.42% on average over the next years. This is quite good.
Based on estimates for the next years, NBR will show a small growth in Revenue. The Revenue will grow by 4.82% on average per year.
EPS Next Y101.09%
EPS Next 2Y27.11%
EPS Next 3Y22.97%
EPS Next 5Y18.42%
Revenue Next Year7.63%
Revenue Next 2Y3.79%
Revenue Next 3Y4.2%
Revenue Next 5Y4.82%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for NBR. In the last year negative earnings were reported.
Also next year NBR is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NBR is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.54 |
4.3 Compensation for Growth
NBR's earnings are expected to grow with 22.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.11%
EPS Next 3Y22.97%
5. Dividend
5.1 Amount
NBR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
51.55
-0.09 (-0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.6%
Inst Owner Change0.75%
Ins Owners4%
Ins Owner Change1.4%
Market Cap811.40M
Revenue(TTM)3.12B
Net Income(TTM)-138.20M
Analysts49.33
Price Target42.69 (-17.19%)
Short Float %14.85%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-73.53%
DP-4.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.61%
Min EPS beat(2)-152.11%
Max EPS beat(2)171.33%
EPS beat(4)1
Avg EPS beat(4)-88.76%
Min EPS beat(4)-287.9%
Max EPS beat(4)171.33%
EPS beat(8)1
Avg EPS beat(8)-866.82%
EPS beat(12)3
Avg EPS beat(12)-678.17%
EPS beat(16)3
Avg EPS beat(16)-518.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)2.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)2.22%
Revenue beat(8)2
Avg Revenue beat(8)-1.17%
Revenue beat(12)4
Avg Revenue beat(12)-0.79%
Revenue beat(16)7
Avg Revenue beat(16)-0.38%
PT rev (1m)6.3%
PT rev (3m)13.13%
EPS NQ rev (1m)-2.97%
EPS NQ rev (3m)-29.85%
EPS NY rev (1m)-3.04%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-2.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | 1.52 | ||
| P/B | 2.63 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 3.54 |
EPS(TTM)-16.43
EYN/A
EPS(NY)-7.55
Fwd EYN/A
FCF(TTM)-9.38
FCFYN/A
OCF(TTM)33.8
OCFY65.58%
SpS192.54
BVpS19.57
TBVpS19.57
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.74% | ||
| ROE | -44.87% | ||
| ROCE | 5.24% | ||
| ROIC | 4.14% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 4.55% | ||
| OM | 7.56% | ||
| PM (TTM) | N/A | ||
| GM | 40.56% | ||
| FCFM | N/A |
ROA(3y)-4.38%
ROA(5y)-7.78%
ROE(3y)-88.52%
ROE(5y)-87.38%
ROIC(3y)3.54%
ROIC(5y)N/A
ROICexc(3y)4.37%
ROICexc(5y)N/A
ROICexgc(3y)4.37%
ROICexgc(5y)N/A
ROCE(3y)4.47%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.82%
GM growth 5Y2.06%
F-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 105.35% | ||
| Cap/Sales | 22.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.85% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 0.4 |
F-Score5
WACC7.82%
ROIC/WACC0.53
Cap/Depr(3y)76.54%
Cap/Depr(5y)57.36%
Cap/Sales(3y)17.15%
Cap/Sales(5y)14.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-122.41%
EPS Next Y101.09%
EPS Next 2Y27.11%
EPS Next 3Y22.97%
EPS Next 5Y18.42%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y13.25%
Revenue growth 5Y-0.76%
Sales Q2Q%10.07%
Revenue Next Year7.63%
Revenue Next 2Y3.79%
Revenue Next 3Y4.2%
Revenue Next 5Y4.82%
EBIT growth 1Y-5.25%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year256.63%
EBIT Next 3Y58.59%
EBIT Next 5Y43.32%
FCF growth 1Y-179.67%
FCF growth 3Y-58.66%
FCF growth 5Y-44.51%
OCF growth 1Y-19.55%
OCF growth 3Y10.68%
OCF growth 5Y-3.21%
NABORS INDUSTRIES LTD / NBR FAQ
What is the ChartMill fundamental rating of NABORS INDUSTRIES LTD (NBR) stock?
ChartMill assigns a fundamental rating of 2 / 10 to NBR.
What is the valuation status for NBR stock?
ChartMill assigns a valuation rating of 1 / 10 to NABORS INDUSTRIES LTD (NBR). This can be considered as Overvalued.
How profitable is NABORS INDUSTRIES LTD (NBR) stock?
NABORS INDUSTRIES LTD (NBR) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for NBR stock?
The Earnings per Share (EPS) of NABORS INDUSTRIES LTD (NBR) is expected to grow by 101.09% in the next year.
How sustainable is the dividend of NABORS INDUSTRIES LTD (NBR) stock?
The dividend rating of NABORS INDUSTRIES LTD (NBR) is 0 / 10 and the dividend payout ratio is -4.38%.