NABORS INDUSTRIES LTD (NBR)

BMG6359F1370 - Common Stock

81.62  -0.85 (-1.03%)

After market: 80.8049 -0.82 (-1%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to NBR. NBR was compared to 61 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of NBR have multiple concerns. NBR does not seem to be growing, but still is valued expensively.



3

1. Profitability

1.1 Basic Checks

NBR had negative earnings in the past year.
In the past year NBR had a positive cash flow from operations.
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

Looking at the Return On Assets, with a value of -3.35%, NBR is doing worse than 71.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of -61.80%, NBR is doing worse than 90.00% of the companies in the same industry.
NBR's Return On Invested Capital of 4.75% is on the low side compared to the rest of the industry. NBR is outperformed by 61.67% of its industry peers.
Industry RankSector Rank
ROA -3.35%
ROE -61.8%
ROIC 4.75%
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

NBR has a Operating Margin (8.26%) which is in line with its industry peers.
NBR has a Gross Margin of 40.24%. This is amongst the best in the industry. NBR outperforms 83.33% of its industry peers.
NBR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 8.26%
PM (TTM) N/A
GM 40.24%
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

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

2.2 Solvency

NBR has an Altman-Z score of 0.46. This is a bad value and indicates that NBR is not financially healthy and even has some risk of bankruptcy.
NBR has a Altman-Z score of 0.46. This is in the lower half of the industry: NBR underperforms 75.00% of its industry peers.
The Debt to FCF ratio of NBR is 26.49, which is on the high side as it means it would take NBR, 26.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NBR (26.49) is worse than 63.33% of its industry peers.
NBR has a Debt/Equity ratio of 10.04. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 10.04, NBR is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 10.04
Debt/FCF 26.49
Altman-Z 0.46
ROIC/WACC0.62
WACC7.62%

2.3 Liquidity

NBR has a Current Ratio of 1.82. 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 Current ratio (1.82) which is comparable to the rest of the industry.
NBR has a Quick Ratio of 1.57. 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 (1.57) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 1.57

3

3. Growth

3.1 Past

The earnings per share for NBR have decreased strongly by -51.79% in the last year.
NBR shows a decrease in Revenue. In the last year, the revenue decreased by -3.76%.
NBR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.34% yearly.
EPS 1Y (TTM)-51.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.71%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y12.1%
Revenue growth 5Y-0.34%
Sales Q2Q%-0.11%

3.2 Future

Based on estimates for the next years, NBR will show a very strong growth in Earnings Per Share. The EPS will grow by 34.76% on average per year.
Based on estimates for the next years, NBR will show a small growth in Revenue. The Revenue will grow by 4.77% on average per year.
EPS Next Y-224.14%
EPS Next 2Y32.12%
EPS Next 3Y34.76%
EPS Next 5YN/A
Revenue Next Year-2.74%
Revenue Next 2Y4.85%
Revenue Next 3Y4.77%
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.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for NBR. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for NBR. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NBR indicates a rather cheap valuation: NBR is cheaper than 95.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NBR is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.21
EV/EBITDA 3.29

4.3 Compensation for Growth

A more expensive valuation may be justified as NBR's earnings are expected to grow with 34.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.12%
EPS Next 3Y34.76%

0

5. Dividend

5.1 Amount

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

NABORS INDUSTRIES LTD

NYSE:NBR (11/8/2024, 8:09:38 PM)

After market: 80.8049 -0.82 (-1%)

81.62

-0.85 (-1.03%)

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 Cap874.15M
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)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 N/A
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 -3.35%
ROE -61.8%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.26%
PM (TTM) N/A
GM 40.24%
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 Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 10.04
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.82
Quick Ratio 1.57
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)-51.79%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-224.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.76%
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