NYSE:NAT

Stock Analysis Report

Nordic American Tankers

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has Nordic American Tankers's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

NAT

-0.2%

US Oil and Gas

1.8%

US Market


1 Year Return

68.1%

NAT

-21.5%

US Oil and Gas

7.3%

US Market

Return vs Industry: NAT exceeded the US Oil and Gas industry which returned -21.5% over the past year.

Return vs Market: NAT exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

NATIndustryMarket
7 Day2.9%-0.2%1.8%
30 Day95.5%-6.4%-0.7%
90 Day88.1%-8.5%0.06%
1 Year80.2%68.1%-18.6%-21.5%9.7%7.3%
3 Year-50.6%-59.6%-8.1%-16.3%46.3%36.9%
5 Year-25.9%-49.4%-24.9%-35.3%64.5%46.5%

Price Volatility Vs. Market

How volatile is Nordic American Tankers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nordic American Tankers undervalued compared to its fair value and its price relative to the market?

0.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: NAT ($3.95) is trading above our estimate of fair value ($1.69)

Significantly Undervalued: NAT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NAT is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: NAT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NAT is overvalued based on its PB Ratio (1x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Nordic American Tankers forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

94.1%

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 (10% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NAT's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

-46.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NAT is unprofitable, and losses have increased over the past 5 years at a rate of -46.4% 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 (22.6%).


Return on Equity

High ROE: NAT has a negative Return on Equity (-9.91%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NAT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NAT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Nordic American Tankers's financial position?


Financial Position Analysis

Short Term Liabilities: NAT's short term assets ($100.2M) exceeds its short term liabilities ($39.4M)

Long Term Liabilities: NAT's short term assets (100.2M) do not cover its long term liabilities (405.8M)


Debt to Equity History and Analysis

Debt Level: NAT's debt to equity ratio (70.2%) is considered high

Reducing Debt: NAT's debt to equity ratio has increased from 27% to 70.2% over the past 5 years.


Balance Sheet

Inventory Level: NAT has a high level of physical assets or inventory.

Debt Coverage by Assets: NAT's debt is not covered by short term assets (assets are 0.2x debt).


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: Whilst unprofitable NAT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NAT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 78.8% per year.


Next Steps

Dividend

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

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%3.7%industryaverage4.2%forecastin3Years9.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NAT's dividend (2.03%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NAT's dividend (2.03%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: NAT's dividends in 3 years are forecast to be covered by earnings (72.8% payout ratio).


Next Steps

Management

What is the CEO of Nordic American Tankers's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Herbjørn Hansson (71yo)

24.8yrs

Tenure

0

Mr. Herbjørn Hansson is the Founder of Nordic American Tankers Limited (formerly Nordic American Tanker Shipping Ltd.) and has been its Chief Executive Officer since 1995. Mr. Hansson was Executive Chairma ...


Management Age and Tenure

7.3yrs

Average Tenure

61yo

Average Age

Experienced Management: NAT's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

12.3yrs

Average Tenure

69yo

Average Age

Experienced Board: NAT's board of directors are seasoned and experienced ( 12.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Herbjørn Hansson (71yo)

    Founder

    • Tenure: 24.8yrs
  • Jan Langangen (69yo)

    Advisor & Director

    • Tenure: 9.3yrs
  • John Bernander (61yo)

    Advisor to Chairman

    • Tenure: 7.3yrs
  • Bjørn Giaever (52yo)

    CFO & Secretary

    • Tenure: 2yrs
  • Jan H. Møller (34yo)

    Head of Investor Relations and Financial Manager

    • Tenure: 0yrs
  • Erik Tomstad

    Executive Vice President of Chartering

    • Tenure: 0yrs

Board Members

  • Herbjørn Hansson (71yo)

    Founder

    • Tenure: 24.8yrs
  • Andreas Ugland (64yo)

    Vice Chairman

    • Tenure: 22.8yrs
  • Jan Langangen (69yo)

    Advisor & Director

    • Tenure: 9.3yrs
  • Jim Kelly (66yo)

    Director

    • Tenure: 9.3yrs
  • Richard H. Vietor (73yo)

    Director

    • Tenure: 12.3yrs

Company Information

Nordic American Tankers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nordic American Tankers Limited
  • Ticker: NAT
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$560.693m
  • Shares outstanding: 141.95m
  • Website: https://www.nat.bm

Number of Employees


Location

  • Nordic American Tankers Limited
  • LOM Building
  • 27 Reid Street
  • Hamilton
  • HM 11
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NATNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 1997
B3ODB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1997
0UC0LSE (London Stock Exchange)YesCommon SharesGBUSDSep 1997

Biography

Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 23 Suezmax crude oil tankers. The company was founded in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:47
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.