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 moderate growth potential.

Risks

  • Nabors Industries has significant price volatility in the past 3 months.

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

3.5%

NBR

-2.2%

US Energy Services

-0.6%

US Market


1 Year Return

-61.9%

NBR

-43.1%

US Energy Services

0.7%

US Market

NBR underperformed the Energy Services industry which returned -43% over the past year.

NBR underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

NBRIndustryMarket
7 Day3.5%-2.2%-0.6%
30 Day39.2%14.1%4.9%
90 Day-8.1%-7.5%1.7%
1 Year-60.6%-61.9%-41.5%-43.1%3.0%0.7%
3 Year-73.8%-76.2%-43.4%-50.4%44.8%35.4%
5 Year-88.2%-89.8%-65.6%-70.8%62.0%44.3%

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

1 month ago | Simply Wall St

The Independent Director of Nabors Industries Ltd. (NYSE:NBR), Tanya Beder, Just Bought 29.51437% More Shares

Valuation

Is Nabors Industries undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Nabors Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

Nabors Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Nabors Industries is loss making, we can't compare its value to the US Energy Services industry average.

Nabors Industries is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Nabors Industries, we can't assess if its growth is good value.


Price Based on Value of Assets

Nabors Industries is good value based on assets compared to the US Energy Services industry average.


Next Steps

Future Growth

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

57.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nabors Industries's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Nabors Industries's earnings are expected to grow significantly at over 20% yearly.

Nabors Industries's revenue growth is positive but not above the United States of America market average.

Nabors Industries's earnings growth is expected to exceed the United States of America market average.

Nabors Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Nabors Industries will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


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

Nabors Industries does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Nabors Industries's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Nabors Industries's 1-year growth to the US Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Nabors Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Nabors Industries has efficiently used its assets last year compared to the US Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Nabors Industries improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Nabors Industries's financial position?


Financial Position Analysis

Nabors Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nabors Industries's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Nabors Industries's level of debt (123.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (65.1% vs 123.7% today).


Balance Sheet

High level of physical assets or inventory.

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.

Nabors Industries has sufficient cash runway for more than 3 years based on current free cash flow.

Unable to confirm if Nabors Industries has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

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

3.71%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Nabors Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Nabors Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Nabors Industries has been paying a dividend for less than 10 years.

Nabors Industries has only been paying a dividend for 7 years, and since then dividends per share have fallen.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

The company is expected to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not expected 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?

5.5yrs

Average management tenure


CEO

Anthony Petrello (64yo)

7.9yrs

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

Anthony's remuneration is higher than average for companies of similar size in United States of America.

Anthony's compensation has increased whilst company is loss making.


Management Age and Tenure

5.5yrs

Average Tenure

53.5yo

Average Age

The average tenure for the Nabors Industries management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.3yrs

Average Tenure

64yo

Average Age

The tenure for the Nabors Industries board of directors is about average.


Insider Trading

More shares have been bought than sold by Nabors Industries individual insiders 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: 7.9yrs
    • Compensation: US$14.74m
  • Denny Smith

    Senior VP of Corporate Development & Investor Relations

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

    Chief Financial Officer

    • Tenure: 5.5yrs
    • Compensation: US$3.87m
  • Mark Andrews (46yo)

    Corporate Secretary

    • Tenure: 12yrs
    • 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: 4.2yrs
  • Mike Rasmuson

    Senior VP

    • Tenure: 0yrs
  • Sri Valleru

    Senior VP

    • Tenure: 19.7yrs
  • Jade Strong

    Senior VP & Chief Human Capital Officer

    • Tenure: 0yrs
  • Travis Purvis

    Senior Vice President of Eastern Hemisphere Operations

    • Tenure: 0.7yrs

Board Members

  • Jim Crane (65yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$460.00k
  • Anthony Petrello (64yo)

    Chairman

    • Tenure: 7.9yrs
    • Compensation: US$14.74m
  • Tony Chase (64yo)

    Director

    • Tenure: 0.6yrs
  • Mike Linn (67yo)

    Independent Director

    • Tenure: 7.7yrs
    • 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: 6.2yrs
    • 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$865.030m
  • 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 Analysis2019/09/22 23:59
End of Day Share Price2019/09/20 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.