NORDIC AMERICAN TANKERS LTD (NAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NAT - BMG657731060 - Common Stock
4.06 USD
+0.05 (+1.25%)
4.0564 USD
0 (-0.09%)
NAT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of NAT have multiple concerns. NAT does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year NAT has reported negative net income.
- NAT had positive earnings in 4 of the past 5 years.
- NAT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of NAT (0.21%) is worse than 67.63% of its industry peers.
- NAT has a worse Return On Equity (0.41%) than 66.67% of its industry peers.
- NAT has a worse Return On Invested Capital (1.59%) than 71.01% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NAT is significantly below the industry average of 21.94%.
- The 3 year average ROIC (8.03%) for NAT is well above the current ROIC(1.59%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 0.41% | ||
| ROIC | 1.59% |
ROA(3y)6.22%
ROA(5y)0.73%
ROE(3y)10.1%
ROE(5y)0.85%
ROIC(3y)8.03%
ROIC(5y)N/A
1.3 Margins
- NAT has a worse Profit Margin (0.65%) than 65.70% of its industry peers.
- The Operating Margin of NAT (5.87%) is worse than 62.80% of its industry peers.
- NAT's Operating Margin has improved in the last couple of years.
- NAT has a Gross Margin (35.29%) which is in line with its industry peers.
- NAT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.87% | ||
| PM (TTM) | 0.65% | ||
| GM | 35.29% |
OM growth 3YN/A
OM growth 5Y16.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y6.11%
2. Health
2.1 Basic Checks
- NAT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, NAT has more shares outstanding
- The number of shares outstanding for NAT has been increased compared to 5 years ago.
- NAT has a better debt/assets ratio than last year.
2.2 Solvency
- A Debt/Equity ratio of 0.86 indicates that NAT is somewhat dependend on debt financing.
- NAT's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. NAT is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.17
WACC9.17%
2.3 Liquidity
- A Current Ratio of 1.95 indicates that NAT should not have too much problems paying its short term obligations.
- NAT has a better Current ratio (1.95) than 75.85% of its industry peers.
- NAT has a Quick Ratio of 1.64. This is a normal value and indicates that NAT is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of NAT (1.64) is better than 74.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- The earnings per share for NAT have decreased strongly by -120.69% in the last year.
- The Revenue for NAT has decreased by -19.77% in the past year. This is quite bad
- NAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.97% yearly.
EPS 1Y (TTM)-120.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-125%
Revenue 1Y (TTM)-19.77%
Revenue growth 3Y22.32%
Revenue growth 5Y1.97%
Sales Q2Q%-12.2%
3.2 Future
- Based on estimates for the next years, NAT will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.90% on average per year.
- Based on estimates for the next years, NAT will show a decrease in Revenue. The Revenue will decrease by -9.22% on average per year.
EPS Next Y-83.93%
EPS Next 2Y4.42%
EPS Next 3Y-16.9%
EPS Next 5YN/A
Revenue Next Year-16.74%
Revenue Next 2Y2.01%
Revenue Next 3Y-9.22%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- NAT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- With a Price/Forward Earnings ratio of 16.93, NAT is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NAT is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of NAT to the average of the S&P500 Index (24.26), we can say NAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NAT is valued a bit more expensive than the industry average as 68.12% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.53 |
4.3 Compensation for Growth
- A cheap valuation may be justified as NAT's earnings are expected to decrease with -16.90% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.42%
EPS Next 3Y-16.9%
5. Dividend
5.1 Amount
- NAT has a Yearly Dividend Yield of 8.98%, which is a nice return.
- NAT's Dividend Yield is rather good when compared to the industry average which is at 3.74. NAT pays more dividend than 87.92% of the companies in the same industry.
- NAT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.98% |
5.2 History
- On average, the dividend of NAT grows each year by 33.35%, which is quite nice.
- NAT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)33.35%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- NAT pays out 1313.26% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of NAT has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP1313.26%
EPS Next 2Y4.42%
EPS Next 3Y-16.9%
NORDIC AMERICAN TANKERS LTD / NAT FAQ
What is the fundamental rating for NAT stock?
ChartMill assigns a fundamental rating of 3 / 10 to NAT.
What is the valuation status of NORDIC AMERICAN TANKERS LTD (NAT) stock?
ChartMill assigns a valuation rating of 1 / 10 to NORDIC AMERICAN TANKERS LTD (NAT). This can be considered as Overvalued.
What is the profitability of NAT stock?
NORDIC AMERICAN TANKERS LTD (NAT) has a profitability rating of 3 / 10.
What is the financial health of NORDIC AMERICAN TANKERS LTD (NAT) stock?
The financial health rating of NORDIC AMERICAN TANKERS LTD (NAT) is 3 / 10.