NORDIC AMERICAN TANKERS LTD (NAT) Stock Fundamental Analysis
NYSE:NAT - New York Stock Exchange, Inc. - BMG657731060 - Common Stock - Currency: USD
NAT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. NAT has only an average score on both its financial health and profitability. NAT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NAT was profitable.
In the past year NAT had a positive cash flow from operations.
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
NAT has a Return On Assets (4.18%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 7.24%, NAT is in line with its industry, outperforming 46.92% of the companies in the same industry.
NAT's Return On Invested Capital of 5.71% is in line compared to the rest of the industry. NAT outperforms 49.29% 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 23.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 7.24% | ||
| ROIC | 5.71% |
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 Profit Margin of 11.07%. This is comparable to the rest of the industry: NAT outperforms 58.77% of its industry peers.
The Operating Margin of NAT (16.91%) is comparable to the rest of the industry.
NAT's Operating Margin has improved in the last couple of years.
NAT has a Gross Margin (42.39%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NAT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.91% | ||
| PM (TTM) | 11.07% | ||
| GM | 42.39% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NAT 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.
The debt/assets ratio for NAT has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of NAT is 3.93, which is a good value as it means it would take NAT, 3.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.93, NAT is in the better half of the industry, outperforming 71.09% of the companies in the same industry.
NAT has a Debt/Equity ratio of 0.53. This is a neutral value indicating NAT is somewhat dependend on debt financing.
NAT has a Debt to Equity ratio (0.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC10.16%
2.3 Liquidity
A Current Ratio of 1.54 indicates that NAT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.54, NAT is in the better half of the industry, outperforming 67.30% of the companies in the same industry.
NAT has a Quick Ratio of 1.34. This is a normal value and indicates that NAT is financially healthy and should not expect problems in meeting its short term obligations.
NAT has a Quick ratio of 1.34. This is in the better half of the industry: NAT outperforms 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
NAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.88%.
Looking at the last year, NAT shows a very negative growth in Revenue. The Revenue has decreased by -10.42% in the last year.
The Revenue has been growing slightly by 1.97% on average over the past years.
EPS 1Y (TTM)-46.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.43%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y22.32%
Revenue growth 5Y1.97%
Sales Q2Q%-37.36%
3.2 Future
NAT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.08% yearly.
Based on estimates for the next years, NAT will show a small growth in Revenue. The Revenue will grow by 1.25% on average per year.
EPS Next Y25.33%
EPS Next 2Y25.12%
EPS Next 3Y6.08%
EPS Next 5YN/A
Revenue Next Year13.91%
Revenue Next 2Y9.92%
Revenue Next 3Y1.25%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NAT is valuated correctly with a Price/Earnings ratio of 15.94.
NAT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NAT to the average of the S&P500 Index (27.45), we can say NAT is valued slightly cheaper.
The Price/Forward Earnings ratio is 7.87, which indicates a rather cheap valuation of NAT.
79.15% of the companies in the same industry are more expensive than NAT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NAT to the average of the S&P500 Index (21.90), we can say NAT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 7.87 |
4.2 Price Multiples
NAT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NAT indicates a rather cheap valuation: NAT is cheaper than 85.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.63 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y25.12%
EPS Next 3Y6.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.70%, NAT is a good candidate for dividend investing.
NAT's Dividend Yield is rather good when compared to the industry average which is at 6.51. NAT pays more dividend than 89.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, NAT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.7% |
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 264.15% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NAT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP264.15%
EPS Next 2Y25.12%
EPS Next 3Y6.08%
2.71
+0.03 (+1.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners40.63%
Inst Owner Change1.32%
Ins Owners4.34%
Ins Owner ChangeN/A
Market Cap573.84M
Analysts75.56
Price Target4.16 (53.51%)
Short Float %7.21%
Short Ratio5.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.7% |
Yearly Dividend0.42
Dividend Growth(5Y)33.35%
DP264.15%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)148.95%
Min EPS beat(2)-72.24%
Max EPS beat(2)370.15%
EPS beat(4)2
Avg EPS beat(4)74.62%
Min EPS beat(4)-72.24%
Max EPS beat(4)370.15%
EPS beat(8)2
Avg EPS beat(8)26.08%
EPS beat(12)4
Avg EPS beat(12)18.89%
EPS beat(16)4
Avg EPS beat(16)11.21%
Revenue beat(2)0
Avg Revenue beat(2)-20.6%
Min Revenue beat(2)-30.58%
Max Revenue beat(2)-10.61%
Revenue beat(4)1
Avg Revenue beat(4)-10.27%
Min Revenue beat(4)-30.58%
Max Revenue beat(4)1.11%
Revenue beat(8)3
Avg Revenue beat(8)-9.54%
Revenue beat(12)5
Avg Revenue beat(12)9.91%
Revenue beat(16)6
Avg Revenue beat(16)20.65%
PT rev (1m)-3.89%
PT rev (3m)-8.22%
EPS NQ rev (1m)16.56%
EPS NQ rev (3m)16.56%
EPS NY rev (1m)-8%
EPS NY rev (3m)-9%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)6.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 7.87 | ||
| P/S | 1.75 | ||
| P/FCF | 6.63 | ||
| P/OCF | 6.43 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)0.17
EY6.27%
EPS(NY)0.34
Fwd EY12.71%
FCF(TTM)0.41
FCFY15.09%
OCF(TTM)0.42
OCFY15.56%
SpS1.54
BVpS2.36
TBVpS2.36
PEG (NY)0.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 7.24% | ||
| ROCE | 7.22% | ||
| ROIC | 5.71% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 6.6% | ||
| OM | 16.91% | ||
| PM (TTM) | 11.07% | ||
| GM | 42.39% | ||
| FCFM | 26.47% |
ROA(3y)6.22%
ROA(5y)0.73%
ROE(3y)10.1%
ROE(5y)0.85%
ROIC(3y)8.03%
ROIC(5y)N/A
ROICexc(3y)8.44%
ROICexc(5y)N/A
ROICexgc(3y)8.44%
ROICexgc(5y)N/A
ROCE(3y)10.17%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y25.4%
ROICexc growth 3YN/A
ROICexc growth 5Y25.4%
OM growth 3YN/A
OM growth 5Y16.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y6.11%
F-Score4
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.93 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 4.83% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.12% | ||
| Profit Quality | 239.04% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | N/A |
F-Score4
WACC10.16%
ROIC/WACC0.56
Cap/Depr(3y)52.71%
Cap/Depr(5y)35.03%
Cap/Sales(3y)7.02%
Cap/Sales(5y)5.08%
Profit Quality(3y)153.87%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.43%
EPS Next Y25.33%
EPS Next 2Y25.12%
EPS Next 3Y6.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y22.32%
Revenue growth 5Y1.97%
Sales Q2Q%-37.36%
Revenue Next Year13.91%
Revenue Next 2Y9.92%
Revenue Next 3Y1.25%
Revenue Next 5YN/A
EBIT growth 1Y-42.47%
EBIT growth 3YN/A
EBIT growth 5Y19.29%
EBIT Next Year73.09%
EBIT Next 3Y20.88%
EBIT Next 5YN/A
FCF growth 1Y10.18%
FCF growth 3YN/A
FCF growth 5Y27.27%
OCF growth 1Y6.57%
OCF growth 3YN/A
OCF growth 5Y26.16%