NABORS INDUSTRIES LTD (NBR)
BMG6359F1370 - Common Stock
NBR gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 65 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of NBR have multiple concerns. NBR has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NBR has reported negative net income.
In the past year NBR had a positive cash flow from operations.
In the past 5 years NBR always reported negative net income.
NBR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NBR has a Return On Assets of -2.18%. This is in the lower half of the industry: NBR underperforms 73.85% of its industry peers.
With a Return On Equity value of -35.41%, NBR is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
NBR has a Return On Invested Capital (5.10%) which is comparable to the rest of the industry.
| Industry Rank | Sector 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
NBR has a Operating Margin (8.82%) which is comparable to the rest of the industry.
With a decent Gross Margin value of 40.38%, NBR is doing good in the industry, outperforming 78.46% of the companies in the same industry.
In the last couple of years the Gross Margin of NBR has grown nicely.
| Industry Rank | Sector 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%
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.
NBR has a worse debt/assets ratio than last year.
2.2 Solvency
NBR has an Altman-Z score of 0.51. This is a bad value and indicates that NBR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NBR (0.51) is worse than 78.46% of its industry peers.
The Debt to FCF ratio of NBR is 39.12, which is on the high side as it means it would take NBR, 39.12 years of fcf income to pay off all of its debts.
NBR has a Debt to FCF ratio of 39.12. This is in the lower half of the industry: NBR underperforms 67.69% of its industry peers.
NBR has a Debt/Equity ratio of 8.77. This is a high value indicating a heavy dependency on external 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.77 | ||
| Debt/FCF | 39.12 | ||
| Altman-Z | 0.51 |
ROIC/WACC0.74
WACC6.9%
2.3 Liquidity
NBR has a Current Ratio of 1.78. 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 (1.78) is comparable to the rest of the industry.
A Quick Ratio of 1.53 indicates that NBR should not have too much problems paying its short term obligations.
The Quick ratio of NBR (1.53) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The earnings per share for NBR have decreased strongly by -203.07% in the last year.
The Revenue has decreased by -2.40% in the past year.
NBR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.34% yearly.
EPS 1Y (TTM)-203.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1283.87%
Revenue 1Y (TTM)-2.4%
Revenue growth 3Y12.1%
Revenue growth 5Y-0.34%
Sales Q2Q%-4.21%
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
NBR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.78% yearly.
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. Valuation
4.1 Price/Earnings Ratio
NBR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 14.70 indicates a correct valuation of NBR.
NBR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NBR is more expensive than 61.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NBR to the average of the S&P500 Index (20.59), we can say NBR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.7 |
4.2 Price Multiples
93.85% of the companies in the same industry are more expensive than NBR, based on the Enterprise Value to EBITDA ratio.
NBR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.95 | ||
| EV/EBITDA | 3.48 |
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%
5. Dividend
5.1 Amount
NBR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NABORS INDUSTRIES LTD
NYSE:NBR (7/26/2024, 7:04:00 PM)
After market: 99.43 -2.31 (-2.27%)101.74
+0.93 (+0.92%)
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 Cap1.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.7 | ||
| 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 Rank | Sector 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 Rank | Sector 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)-203.07%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-48.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.4%
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