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NBR

Nabors Industries NYSE:NBR Stock Report

Last Price

US$94.40

Market Cap

US$889.1m

7D

-24.2%

1Y

4.9%

Updated

24 Sep, 2022

Data

Company Financials +
NBR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends0/6

NBR Stock Overview

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

Nabors Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nabors Industries
Historical stock prices
Current Share PriceUS$94.40
52 Week HighUS$207.67
52 Week LowUS$72.46
Beta2.7
1 Month Change-36.01%
3 Month Change-29.70%
1 Year Change4.92%
3 Year Change-2.18%
5 Year Change-76.61%
Change since IPO7.89%

Recent News & Updates

Sep 06

Nabors Industries: A Positive Outlook For Demand Is Helping

Summary Revenues were $630.943 million in the second quarter of 2022, up from $489.33 million a year ago. The total working rigs increased to 173 rigs from 168 in 1Q22. Daily adjusted gross margin in the Lower 48 market averaged $8,706, more than 13% higher than the prior quarter. I recommend buying between $129 and $126 with potential lower support at $110. Introduction Nabors Industries (NBR) released its second quarter of 2022 results on August 3, 2022. Note: This is a quarterly update from my preceding article published on June 6, 2022. I have covered Nabors Industries in Seeking Alpha since Sept. 2014. 1 - 1Q22 Results Snapshot Revenues were $630.943 million in the second quarter of 2022, up from $489.33 million a year ago. Nabors' total costs and expenses increased to $692.3 million from $654.9 million in 2Q21 due to much higher direct expenses, general and administrative costs, and research and engineering expenses. NBR reported a second-quarter 2022 loss of $82.92 million or $9.41 per share. The figures beat analysts' expectations. NBR 2Q22 highlights (NBR Presentation) The second-quarter adjusted EBITDA was $158.04 million compared to $117.32 million in the second quarter of 2021. Nabors Industries exited 2Q22 with 96.4 rigs running in the US. The daily margin increased to $10,738 per day, up slightly year over year in the second quarter. For the International segment, NBR exited 2Q22 with 74.3 rigs with a daily margin stable at $14,331 per day. 2 - Stock performance Nabors Industries has done very well on a one-year basis and is up 59%. However, NBR and HP have dropped significantly since May. Data by YCharts 3 - Investment Thesis The investment thesis is a challenging exercise for this onshore drilling company. The situation has improved significantly in the past two quarters. The company is generating free cash flow due to a surge in drilling demand and higher commodity pricing, which boosted land drilling rig day rates to a level not seen for a long time. Westwood Global Energy Group is turning optimistic for onshore drilling but is still cautious due to a rig oversupply. It wrote on August 25, 2022: Despite a positive outlook for demand, the oversupply of rigs will remain a key factor in the sector, with demand unlikely to return to the pre 2014 downturn levels that led to a surge in newbuild rig construction. While utilisation in 2022 has increased to 45%, from 43% in 2021, and is forecast to grow to 53% by 2026, numbers will remain well below maximum capacity. At the same time, the increased focus on automated rigs, which currently account for just 16% of the overall rig fleet, could also lead to demand outweighing supply of these rigs, a trend that is already being noted in the U.S. specifically, where some drilling contractors are expecting to exhaust their available supplies of super-spec rigs by mid-2023. As I said in my preceding article, because the company is highly associated with oil prices, I suggest trading LIFO in your long-term position to compensate for the adverse effects of any fluctuations and lessen the overall risk attached to this volatile sector. This dual strategy is what I am recommending in my marketplace and forms the backbone of my Gold and Oil marketplace. 3.1 Nabors Fleet Status Snapshot 2Q22 The total working rigs increased to 173 rigs from 168 in 1Q22. Nabors' average Lower 48 working rig count was 91 in 2Q22. For the international segment, it was 74. Utilization average 52%. CFO William Restrepo said in the press release: We expect similar improvement in the third quarter. Utilization for our high-spec Lower 48 rigs currently stands at 81%. With the current market tightness, pricing is rising rapidly. Margins are expanding, a trend we expect to continue in coming quarters. The accelerating market and our pricing momentum in the Lower 48, as well as stronger than expected fundamentals in the International segment, have significantly outpaced the estimates embedded in our previous EBITDA outlook for 2022 and 2023. NBR Fleet status 2Q22 (NBR Presentation) Nabors Industries - Balance Sheet In 2Q22: The Raw Numbers Nabors Industries 2Q21 3Q21 4Q21 1Q22 2Q22 Total Revenues and other income in $ Million 489.33 524.17 543.54 568.64 630.94 Net income in $ Million -196.01 -122.50 -113.68 -184.50 -82.92 EBITDA $ Million 50.81 102.57 121.64 50.27 144.33 EPS diluted in $/share -26.59 -15.79 -14.60 -22.51 -9.41 Operating cash flow in $ Million 133.71 113.28 102.29 41.35 120.80 CapEx in $ Million 77.00 65.72 54.14 84.26 76.63 Free Cash Flow in $ Million 56.71 47.56 48.16 -42.90 44.16 Total cash $ Million 399.90 771.88 991.49 394.04 417.98 Long-term debt in $ Million 2,823.1 3,075.5 3,262.8 2,610.1 2601.5 Shares outstanding (Basic) in Million 7.46 7.91 7.95 8.31 9.08 Courtesy: NBR PR * Estimated by Fun Trading. Balance Sheet Snapshot 1 - Revenues and other income were $630.94 million in 2Q22 NBR Quarterly Revenues history (Fun Trading) Note: Operating income plus investment income was $631.765 million. Nabors Industries reported second-quarter 2022 operating revenues totaling $630.94 million, up from $489.33 million in the same quarter last year (please look at the chart above). The quarter's net loss was $82.92 million, or $9.41 per diluted share, compared to a loss of $196.01 million, or $26.59 per share, during the second quarter of 2022. CEO Anthony Petrello said in the conference call: In the second quarter all operating segments performed well, exceeding the expectations we laid out on last quarter. This performance reinforces our strategy. The second-quarter adjusted EBITDA was $158.04 million compared to $117.32 million in the second quarter of 2021. 1.1 - Revenues per segment: . NBR Quarterly revenues detail in 2Q22 (Fun Trading) 1.1.1 - U.S. Drilling: The quarterly operating revenues were $253.008 million, up 16.3% from $217.58 million in 1Q22. Nabors' average Lower 48 rig count is 89.3, increased by nearly six rigs. Daily adjusted gross margin in the Lower 48 market averaged $8,706, more than 13% higher than the prior quarter. 1.1.2 - International Drilling: The quarterly operating revenues were up 8.7% to $296.32 million ($279.03 million in 1Q22). It is the primary segment for Nabors and represents 47% of the revenues. The International rig count averaged 74.3 rigs, up more than two rigs from the prior quarter. Daily adjusted gross margin for the second quarter averaged $14,331, up $1,197 from the preceding quarter. 1.1.3 - Drilling Solutions: Revenues were $55.88 million in the second quarter of 2022, up from $36.74 million in 1Q22. It mainly reflects increasing activity in the US with higher volumes in performance drilling software and managed pressure drilling.

Aug 03

Nabors Non-GAAP EPS of -$6.99 beats by $0.68, revenue of $631.77M beats by $18.95M

Nabors press release (NYSE:NBR): Q2 Non-GAAP EPS of -$6.99 beats by $0.68. Revenue of $631.77M (+29.1% Y/Y) beats by $18.95M.

Jul 13
Is Nabors Industries (NYSE:NBR) Using Debt In A Risky Way?

Is Nabors Industries (NYSE:NBR) Using Debt In A Risky Way?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

NBRUS Energy ServicesUS Market
7D-24.2%-11.3%-5.2%
1Y4.9%8.7%-23.0%

Return vs Industry: NBR underperformed the US Energy Services industry which returned 8.7% over the past year.

Return vs Market: NBR exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is NBR's price volatile compared to industry and market?
NBR volatility
NBR Average Weekly Movement12.0%
Energy Services Industry Average Movement8.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: NBR is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: NBR's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
195210,000Tony Petrellohttps://www.nabors.com

Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells. The company operates through five segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies.

Nabors Industries Fundamentals Summary

How do Nabors Industries's earnings and revenue compare to its market cap?
NBR fundamental statistics
Market CapUS$889.10m
Earnings (TTM)-US$513.41m
Revenue (TTM)US$2.27b

0.4x

P/S Ratio

-1.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NBR income statement (TTM)
RevenueUS$2.27b
Cost of RevenueUS$1.46b
Gross ProfitUS$806.48m
Other ExpensesUS$1.32b
Earnings-US$513.41m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-54.51
Gross Margin35.57%
Net Profit Margin-22.65%
Debt/Equity Ratio203.1%

How did NBR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NBR 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/Revenue1.7x
Enterprise Value/EBITDA7.2x
PEG Ration/a

Price to Sales Ratio vs Peers

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

NBR PS Ratio vs Peers
The above table shows the PS ratio for NBR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.2x
DO Diamond Offshore Drilling
0.9x13.3%US$641.7m
NE Noble
2.1x25.0%US$1.9b
RIG Transocean
0.7x13.3%US$1.7b
PTEN Patterson-UTI Energy
1.2x18.9%US$2.4b
NBR Nabors Industries
0.4x15.0%US$889.1m

Price-To-Sales vs Peers: NBR is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (1.2x).


Price to Earnings Ratio vs Industry

How does NBR's PE Ratio compare vs other companies in the US Energy Services Industry?

Price-To-Sales vs Industry: NBR is good value based on its Price-To-Sales Ratio (0.4x) compared to the US Energy Services industry average (0.8x)


Price to Sales Ratio vs Fair Ratio

What is NBR'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.

NBR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: NBR is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).


Share Price vs Fair Value

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

Below Fair Value: NBR ($94.4) is trading below our estimate of fair value ($978.23)

Significantly Below Fair Value: NBR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Nabors Industries forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


113.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NBR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: NBR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NBR is expected to become profitable in the next 3 years.

Revenue vs Market: NBR's revenue (15% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: NBR's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NBR's Return on Equity is forecast to be high in 3 years time (23.7%)


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Past Performance

How has Nabors Industries 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


-1.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NBR is currently unprofitable.

Growing Profit Margin: NBR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NBR is unprofitable, and losses have increased over the past 5 years at a rate of 1.7% 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 (44.1%).


Return on Equity

High ROE: NBR has a negative Return on Equity (-36.65%), as it is currently unprofitable.


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Financial Health

How is Nabors Industries's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NBR's short term assets ($923.4M) exceed its short term liabilities ($524.1M).

Long Term Liabilities: NBR's short term assets ($923.4M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: NBR's net debt to equity ratio (170.4%) is considered high.

Reducing Debt: NBR's debt to equity ratio has increased from 121.9% to 203.1% 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: Whilst unprofitable NBR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NBR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 30.5% per year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.001%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NBR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NBR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NBR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NBR's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: NBR is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NBR has not reported any payouts.


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Management

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

6.8yrs

Average management tenure


CEO

Tony Petrello (67 yo)

31.67yrs

Tenure

US$9,984,321

Compensation

Mr. Anthony G. Petrello, also known as Tony, serves as a President, Chief Executive Officer, Secretary and Director at Nabors Energy Transition Corp. since March 2021. He also serves as a Chairman at Nabor...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD9.98M) is above average for companies of similar size in the US market ($USD4.14M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NBR's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: NBR's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

NYSE:NBR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
15 Dec 21SellUS$56,500John KottsIndividual680US$83.10

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.3%.


Top Shareholders

Top 25 shareholders own 61.47% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.56%
BlackRock, Inc.
1,560,042$147.3m22.19%no data
7.34%
The Vanguard Group, Inc.
691,533$65.3m18.45%no data
4.66%
Van Eck Associates Corporation
439,325$41.5m-2.05%0.1%
4.39%
State Street Global Advisors, Inc.
413,887$39.1m9.55%no data
3.5%
Anthony Petrello
329,330$31.1m1.95%no data
3.23%
Dimensional Fund Advisors LP
304,643$28.8m5.22%0.01%
2.5%
Charles Schwab Investment Management, Inc.
235,471$22.2m0.27%0.01%
1.95%
Marshall Wace LLP
183,290$17.3m95.04%0.05%
1.75%
Encompass Capital Advisors LLC
165,000$15.6m-12.47%1.1%
1.58%
Geode Capital Management, LLC
149,175$14.1m10.57%no data
1.24%
Wellington Management Group LLP
116,444$11.0m18.81%no data
1.19%
Morgan Stanley, Investment Banking and Brokerage Investments
111,756$10.5m35.5%no data
1.05%
William Restrepo
98,440$9.3m0%no data
1.03%
Northern Trust Global Investments
96,829$9.1m18.27%no data
1.01%
Invesco Capital Management LLC
95,587$9.0m80.43%0.01%
0.99%
Renaissance Technologies LLC
93,400$8.8m36.02%0.01%
0.99%
Bridgeway Capital Management, LLC
93,000$8.8m-18.56%0.24%
0.99%
First Trust Advisors LP
92,858$8.8m0%0.01%
0.83%
BNY Mellon Asset Management
78,165$7.4m9.05%no data
0.83%
Millennium Management LLC
77,709$7.3m-46.76%0.01%
0.8%
T. Rowe Price Group, Inc.
75,626$7.1m1355.47%no data
0.79%
Voloridge Investment Management, LLC
74,011$7.0m20.76%0.04%
0.78%
Two Sigma Advisers, LP
73,400$6.9m59.22%0.02%
0.75%
Hussman Strategic Advisors Inc
70,800$6.7m74.38%1.38%
0.74%
Point72 Asset Management, L.P.
69,314$6.5m41.11%0.02%

Company Information

Nabors Industries Ltd.'s 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
  • Implied Market Cap: US$889.096m
  • Shares outstanding: 9.42m
  • 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
NBI1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0A6MLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.