Nordic American Tankers (NYSE:NAT) - Share price, News & Analysis

NAT fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	1/6
Past Performance	0/6
Financial Health	1/6
Dividends	1/6

NAT Stock Overview

Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally.

Rewards

Revenue is forecast to grow 18.1% per year

Risk Analysis

Has less than 1 year of cash runway

Dividend of 2.34% is not well covered by earnings or forecast to be in the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

+ 1 more risk

Nordic American Tankers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nordic American Tankers
Historical stock prices
Current Share Price	US$2.14
52 Week High	US$3.48
52 Week Low	US$1.40
Beta	0.059
1 Month Change	-4.46%
3 Month Change	13.23%
1 Year Change	-37.24%
3 Year Change	-8.55%
5 Year Change	-66.25%
Change since IPO	-88.59%

Recent News & Updates

May 19

Nordic American Tankers: 'F' Earnings Rating

NAT is bullish on spot tanker rates because of Russia's involvement in armed conflict with Ukraine, and most of its tankers are in the spot market. However, Suezmax tanker rates have dropped since their spike. Oil demand fundamentals have softened and high oil prices are dampening demand growth expectations. Therefore, being heavily dependent on spot rates for future revenues is a risky proposition. NAT should be diversifying the timing and term structure of its charters, but it prefers to gamble, endangering future earnings.

Shareholder Returns

	NAT	US Oil and Gas	US Market
7D	13.2%	-1.4%	6.6%
1Y	-37.2%	26.2%	-18.5%

Return vs Industry: NAT underperformed the US Oil and Gas industry which returned 24.6% over the past year.

Return vs Market: NAT underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is NAT's price volatile compared to industry and market?
NAT volatility
NAT Average Weekly Movement	14.8%
Oil and Gas Industry Average Movement	8.7%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: NAT is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: NAT's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
1995	19	Herbjorn Hansson	https://www.nat.bm

Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 24 Suezmax crude oil tankers. The company was formerly known as Nordic American Tanker Shipping Limited and changed its name to Nordic American Tankers Limited in June 2011.

Nordic American Tankers Fundamentals Summary

How do Nordic American Tankers's earnings and revenue compare to its market cap?
NAT fundamental statistics
Market Cap	US$411.41m
Earnings (TTM)	-US$173.28m
Revenue (TTM)	US$187.79m

2.3x

P/S Ratio

-2.5x

P/E Ratio

Is NAT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NAT income statement (TTM)
Revenue	US$187.79m
Cost of Revenue	US$196.16m
Gross Profit	-US$8.37m
Other Expenses	US$164.91m
Earnings	-US$173.28m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.86
Gross Margin	-4.46%
Net Profit Margin	-92.28%
Debt/Equity Ratio	61.5%

How did NAT perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

-5%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is NAT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NAT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NAT. This is calculated by dividing NAT's market cap by their current preferred multiple.
What is NAT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$411.41m

NAT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.6x
Enterprise Value/EBITDA	-26.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does NAT's PS Ratio compare to its peers?

NAT PS Ratio vs Peers

The above table shows the PS ratio for NAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.4x

Forward PS

Price-To-Sales vs Peers: NAT is expensive based on its Price-To-Sales Ratio (2.3x) compared to the peer average (1.4x).

Price to Earnings Ratio vs Industry

How does NAT's PE Ratio compare vs other companies in the U.S. Oil and Gas Industry?

Price-To-Sales vs Industry: NAT is expensive based on its Price-To-Sales Ratio (2.3x) compared to the US Oil and Gas industry average (1.7x)

Price to Sales Ratio vs Fair Ratio

What is NAT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NAT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.3x
Fair PS Ratio	0.4x

Price-To-Sales vs Fair Ratio: NAT is expensive based on its Price-To-Sales Ratio (2.3x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

Share Price vs Fair Value

What is the Fair Price of NAT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NAT ($2.14) is trading above our estimate of fair value ($1.38)

Significantly Below Fair Value: NAT is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NAT's PEG Ratio to determine if it is good value.

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Future Growth

How is Nordic American Tankers forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

140.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NAT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NAT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NAT's revenue (18.1% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: NAT's revenue (18.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if NAT's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Nordic American Tankers performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

14.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NAT is currently unprofitable.

Growing Profit Margin: NAT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: NAT is unprofitable, but has reduced losses over the past 5 years at a rate of 14.7% per year.

Accelerating Growth: Unable to compare NAT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NAT is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (98.5%).

Return on Equity

High ROE: NAT has a negative Return on Equity (-35.24%), as it is currently unprofitable.

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Financial Health

How is Nordic American Tankers's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NAT's short term assets ($110.4M) exceed its short term liabilities ($72.5M).

Long Term Liabilities: NAT's short term assets ($110.4M) do not cover its long term liabilities ($264.8M).

Debt to Equity History and Analysis

Debt Level: NAT's net debt to equity ratio (53.9%) is considered high.

Reducing Debt: NAT's debt to equity ratio has increased from 52.3% to 61.5% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NAT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NAT has less than a year of cash runway if free cash flow continues to grow at historical rates of 20.2% each year.

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Dividend

What is Nordic American Tankers's current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.34%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NAT's dividend (2.34%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: NAT's dividend (2.34%) is low compared to the top 25% of dividend payers in the US market (4.34%).

Stability and Growth of Payments

Stable Dividend: NAT's dividend payments have been volatile in the past 10 years.

Growing Dividend: NAT's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: NAT is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: NAT is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure

CEO

Herbjorn Hansson (73 yo)

27.42yrs

Tenure

Mr. Herbjorn Hansson is a Director at The Shipowners Insurance and Guaranty Company Ltd. He is the Founder of Nordic American Tankers Limited (formerly Nordic American Tanker Shipping Ltd.) and has been it...

Leadership Team

Experienced Management: NAT's management team is seasoned and experienced (9 years average tenure).

Board Members

Experienced Board: NAT's board of directors are considered experienced (7.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: NAT insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31