NYSE:NBR

Stock Analysis Report

Executive Summary

Nabors Industries Ltd. provides drilling and drilling-related services and technologies for land-based and offshore oil and natural gas wells.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

How has Nabors Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.8%

NBR

0.4%

US Energy Services

1.8%

US Market


1 Year Return

-71.3%

NBR

-46.0%

US Energy Services

7.3%

US Market

Return vs Industry: NBR underperformed the US Energy Services industry which returned -46% over the past year.

Return vs Market: NBR underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

NBRIndustryMarket
7 Day6.8%0.4%1.8%
30 Day-32.2%-13.3%-0.7%
90 Day-23.1%-16.2%0.06%
1 Year-70.3%-71.3%-44.5%-46.0%9.7%7.3%
3 Year-85.5%-86.8%-55.2%-60.6%46.3%36.9%
5 Year-89.5%-90.9%-66.3%-71.2%64.5%46.5%

Price Volatility Vs. Market

How volatile is Nabors Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nabors Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NBR ($1.73) is trading below our estimate of fair value ($5.1)

Significantly Undervalued: NBR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NBR is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: NBR 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 NBR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NBR is good value based on its PB Ratio (0.3x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Nabors Industries forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

54.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NBR's revenue (4.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NBR's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NBR is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Nabors Industries performed over the past 5 years?

-10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NBR is unprofitable, and losses have increased over the past 5 years at a rate of -10.1% per year.

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

Earnings vs Industry: NBR is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-13.1%).


Return on Equity

High ROE: NBR has a negative Return on Equity (-19.35%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Nabors Industries's financial position?


Financial Position Analysis

Short Term Liabilities: NBR's short term assets ($1.5B) exceeds its short term liabilities ($772.2M)

Long Term Liabilities: NBR's short term assets (1.5B) do not cover its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: NBR's debt to equity ratio (123.7%) is considered high

Reducing Debt: NBR's debt to equity ratio has increased from 65.1% to 123.7% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NBR's debt is not covered by short term assets (assets are 0.4x 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: NBR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NBR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Nabors Industries's current dividend yield, its reliability and sustainability?

2.31%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%3.7%industryaverage4.5%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NBR's dividend (2.31%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NBR's dividend (2.31%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: Whilst dividend payments have been stable, NBR has been paying a dividend for less than 10 years.

Growing Dividend: NBR has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: NBR is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

What is the CEO of Nabors Industries's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Anthony Petrello (64yo)

8yrs

Tenure

US$14,742,873

Compensation

Mr. Anthony G. Petrello, also known as Tony, has been the Chief Executive Officer of Nabors Industries Ltd., a holding company of Nabors Exchangeco (Canada) Inc since October 28, 2011 and its President sin ...


CEO Compensation Analysis

Compensation vs. Market: Anthony's total compensation ($USD14.74M) is about average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Anthony's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: NBR's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

64yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

BuyUS$115,69509 Aug 19
Tanya Beder
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceUS$2.31
BuyUS$359,06518 Jun 19
William Restrepo
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares177,100
Max PriceUS$2.05
BuyUS$561,35408 Nov 18
John Kotts
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$5.62
BuyUS$1,012,58002 Nov 18
John Yearwood
EntityIndividual
Role
Lead Director
Lead Director
Shares197,000
Max PriceUS$5.14

Ownership Breakdown


Management Team

  • Anthony Petrello (64yo)

    Chairman

    • Tenure: 8yrs
    • Compensation: US$14.74m
  • Denny Smith

    Senior VP of Corporate Development & Investor Relations

    • Tenure: 3.8yrs
  • William Restrepo (60yo)

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: US$3.87m
  • Mark Andrews (46yo)

    Corporate Secretary

    • Tenure: 12.1yrs
    • Compensation: US$437.73k
  • R. Wood (47yo)

    VP & Chief Accounting Officer

    • Tenure: 0yrs
    • Compensation: US$1.03m
  • Edgar Rincon

    Senior Vice President of Western Hemisphere Operations

    • Tenure: 4.3yrs
  • Mike Rasmuson

    Senior VP

    • Tenure: 0yrs
  • Sri Valleru

    Senior VP

    • Tenure: 19.8yrs
  • Jade Strong

    Senior VP & Chief Human Capital Officer

    • Tenure: 0yrs
  • Travis Purvis

    Senior Vice President of Eastern Hemisphere Operations

    • Tenure: 0.8yrs

Board Members

  • Jim Crane (65yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$460.00k
  • Anthony Petrello (64yo)

    Chairman

    • Tenure: 8yrs
    • Compensation: US$14.74m
  • Tony Chase (64yo)

    Independent Director

    • Tenure: 0.7yrs
  • Mike Linn (67yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$460.00k
  • John Yearwood (59yo)

    Lead Director

    • Tenure: 8.3yrs
    • Compensation: US$531.52k
  • Tanya Beder (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$458.80k
  • John Kotts (68yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$520.00k

Company Information

Nabors Industries Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nabors Industries Ltd.
  • Ticker: NBR
  • Exchange: NYSE
  • Founded: 1952
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: US$628.782m
  • Shares outstanding: 363.46m
  • Website: https://www.nabors.com

Number of Employees


Location

  • Nabors Industries Ltd.
  • Crown House
  • Second Floor
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NBRNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
NBIDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
NBR.PRANYSE (New York Stock Exchange)6% PFD CNV SR AUSUSDMay 2018

Biography

Nabors Industries Ltd. provides drilling and drilling-related services and technologies for land-based and offshore oil and natural gas wells. It operates through five segments: U.S. Drilling, Canada Drill ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:45
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.