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NABORS INDUSTRIES LTD (NBR) Stock Fundamental Analysis

NYSE:NBR - New York Stock Exchange, Inc. - BMG6359F1370 - Common Stock - Currency: USD

58.24  -0.94 (-1.59%)

After market: 58.24 0 (0%)

Fundamental Rating

3

Overall NBR gets a fundamental rating of 3 out of 10. We evaluated NBR against 58 industry peers in the Energy Equipment & Services industry. NBR has a bad profitability rating. Also its financial health evaluation is rather negative. NBR has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

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.
NBR Yearly Net Income VS EBIT VS OCF VS FCFNBR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B

1.2 Ratios

NBR's Return On Assets of -3.71% is on the low side compared to the rest of the industry. NBR is outperformed by 75.86% of its industry peers.
NBR has a worse Return On Equity (-88.32%) than 94.83% of its industry peers.
NBR has a worse Return On Invested Capital (4.99%) than 62.07% of its industry peers.
Industry RankSector Rank
ROA -3.71%
ROE -88.32%
ROIC 4.99%
ROA(3y)-6.37%
ROA(5y)-9.06%
ROE(3y)-70.55%
ROE(5y)-64.36%
ROIC(3y)N/A
ROIC(5y)N/A
NBR Yearly ROA, ROE, ROICNBR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60 -80

1.3 Margins

NBR has a Operating Margin (8.59%) which is comparable to the rest of the industry.
NBR has a Gross Margin of 40.75%. This is amongst the best in the industry. NBR outperforms 84.48% of its industry peers.
In the last couple of years the Gross Margin of NBR has grown nicely.
Industry RankSector Rank
OM 8.59%
PM (TTM) N/A
GM 40.75%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.52%
GM growth 5Y2.73%
NBR Yearly Profit, Operating, Gross MarginsNBR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 is higher compared to a year ago.
NBR Yearly Shares OutstandingNBR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M
NBR Yearly Total Debt VS Total AssetsNBR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.2 Solvency

Based on the Altman-Z score of 0.42, we must say that NBR is in the distress zone and has some risk of bankruptcy.
NBR's Altman-Z score of 0.42 is on the low side compared to the rest of the industry. NBR is outperformed by 81.03% of its industry peers.
NBR has a debt to FCF ratio of 20.78. This is a negative value and a sign of low solvency as NBR would need 20.78 years to pay back of all of its debts.
NBR's Debt to FCF ratio of 20.78 is in line compared to the rest of the industry. NBR outperforms 41.38% of its industry peers.
NBR has a Debt/Equity ratio of 13.08. This is a high value indicating a heavy dependency on external financing.
NBR has a Debt to Equity ratio of 13.08. This is amonst the worse of the industry: NBR underperforms 93.10% of its industry peers.
Industry RankSector Rank
Debt/Equity 13.08
Debt/FCF 20.78
Altman-Z 0.42
ROIC/WACC0.7
WACC7.17%
NBR Yearly LT Debt VS Equity VS FCFNBR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 1.88 indicates that NBR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.88, NBR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that NBR should not have too much problems paying its short term obligations.
NBR has a better Quick ratio (1.63) than 65.52% of its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.63
NBR Yearly Current Assets VS Current LiabilitesNBR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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3

3. Growth

3.1 Past

NBR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.79%.
NBR shows a decrease in Revenue. In the last year, the revenue decreased by -3.76%.
The Revenue has been decreasing by -0.34% on average over the past years.
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 20.46% on average per year.
Based on estimates for the next years, NBR will show a small growth in Revenue. The Revenue will grow by 2.10% on average per year.
EPS Next Y-226.43%
EPS Next 2Y28.55%
EPS Next 3Y30.45%
EPS Next 5Y20.46%
Revenue Next Year-2.84%
Revenue Next 2Y4.89%
Revenue Next 3Y4.77%
Revenue Next 5Y2.1%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
NBR Yearly Revenue VS EstimatesNBR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
NBR Yearly EPS VS EstimatesNBR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 50 -50 -100

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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
NBR Price Earnings VS Forward Price EarningsNBR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NBR is valued cheaply inside the industry as 96.55% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NBR is valued cheaply inside the industry as 91.38% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.18
EV/EBITDA 2.99
NBR Per share dataNBR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150 200 250

4.3 Compensation for Growth

NBR's earnings are expected to grow with 30.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.55%
EPS Next 3Y30.45%

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0

5. Dividend

5.1 Amount

NBR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NABORS INDUSTRIES LTD

NYSE:NBR (1/30/2025, 8:04:00 PM)

After market: 58.24 0 (0%)

58.24

-0.94 (-1.59%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)10-22 2024-10-22/amc
Earnings (Next)02-12 2025-02-12/amc
Inst Owners76.9%
Inst Owner Change0.06%
Ins Owners5.04%
Ins Owner Change6.14%
Market Cap623.75M
Analysts51.76
Price Target92.65 (59.08%)
Short Float %13.87%
Short Ratio4.28
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.02
Dividend Growth(5Y)-72.49%
DP-0.05%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-107.9%
Min EPS beat(2)-129.44%
Max EPS beat(2)-86.37%
EPS beat(4)0
Avg EPS beat(4)-126.32%
Min EPS beat(4)-169.97%
Max EPS beat(4)-86.37%
EPS beat(8)1
Avg EPS beat(8)-991.43%
EPS beat(12)2
Avg EPS beat(12)-667.96%
EPS beat(16)3
Avg EPS beat(16)-502.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-1.59%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)1.05%
Revenue beat(8)2
Avg Revenue beat(8)-1.18%
Revenue beat(12)5
Avg Revenue beat(12)-0.68%
Revenue beat(16)9
Avg Revenue beat(16)0.31%
PT rev (1m)2.06%
PT rev (3m)0.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-53.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.98%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.21
P/FCF 5.18
P/OCF 1.02
P/B 3.26
P/tB 3.26
EV/EBITDA 2.99
EPS(TTM)-15.68
EYN/A
EPS(NY)-1.79
Fwd EYN/A
FCF(TTM)11.25
FCFY19.31%
OCF(TTM)57.37
OCFY98.51%
SpS273.21
BVpS17.87
TBVpS17.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.71%
ROE -88.32%
ROCE 6.31%
ROIC 4.99%
ROICexc 5.65%
ROICexgc 5.65%
OM 8.59%
PM (TTM) N/A
GM 40.75%
FCFM 4.12%
ROA(3y)-6.37%
ROA(5y)-9.06%
ROE(3y)-70.55%
ROE(5y)-64.36%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg 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 3Y2.52%
GM growth 5Y2.73%
F-Score4
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 13.08
Debt/FCF 20.78
Debt/EBITDA 2.81
Cap/Depr 77.4%
Cap/Sales 16.88%
Interest Coverage 250
Cash Conversion 69.07%
Profit Quality N/A
Current Ratio 1.88
Quick Ratio 1.63
Altman-Z 0.42
F-Score4
WACC7.17%
ROIC/WACC0.7
Cap/Depr(3y)58.07%
Cap/Depr(5y)49.19%
Cap/Sales(3y)14.61%
Cap/Sales(5y)13.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-51.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.71%
EPS Next Y-226.43%
EPS Next 2Y28.55%
EPS Next 3Y30.45%
EPS Next 5Y20.46%
Revenue 1Y (TTM)-3.76%
Revenue growth 3Y12.1%
Revenue growth 5Y-0.34%
Sales Q2Q%-0.11%
Revenue Next Year-2.84%
Revenue Next 2Y4.89%
Revenue Next 3Y4.77%
Revenue Next 5Y2.1%
EBIT growth 1Y1.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year246.96%
EBIT Next 3Y65.47%
EBIT Next 5Y41.52%
FCF growth 1Y56.02%
FCF growth 3Y-14.33%
FCF growth 5YN/A
OCF growth 1Y52.32%
OCF growth 3Y22.17%
OCF growth 5Y14.38%