NYSE:NBR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet and overvalued.


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

Stable Share Price: NBR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.6%

NBR

-1.1%

US Energy Services

2.5%

US Market


1 Year Return

-63.3%

NBR

-47.3%

US Energy Services

15.9%

US Market

Return vs Industry: NBR underperformed the US Energy Services industry which returned -49% over the past year.

Return vs Market: NBR underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

NBRIndustryMarket
7 Day6.6%-1.1%2.5%
30 Day35.1%5.4%5.8%
90 Day282.4%23.3%18.2%
1 Year-62.2%-63.3%-45.5%-47.3%18.4%15.9%
3 Year-85.3%-86.7%-64.7%-67.5%39.9%30.9%
5 Year-91.1%-92.4%-69.1%-74.8%72.9%54.2%

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?

0.23x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NBR ($46.73) is trading above our estimate of fair value ($0.86)

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


Price To Earnings Ratio

PE vs Industry: NBR is unprofitable, so we can't compare its PE Ratio to the US 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

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 (0.2x) 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 16 analysts?

10.4%

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 is expected to decline over the next 3 years (-0.02% per year).

High Growth Revenue: NBR's revenue is forecast to decline over the next 3 years (-0.02% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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?

0.4%

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, but has reduced losses over the past 5 years at a rate of 0.4% 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 (-54.6%).


Return on Equity

High ROE: NBR has a negative Return on Equity (-46.18%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nabors Industries's financial position?


Financial Position Analysis

Short Term Liabilities: NBR's short term assets ($1.2B) exceed its short term liabilities ($523.7M).

Long Term Liabilities: NBR's short term assets ($1.2B) do not cover its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: NBR's debt to equity ratio (166.4%) is considered high.

Reducing Debt: NBR's debt to equity ratio has increased from 76.2% to 166.4% 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 2.4% per year.


Next Steps

Dividend

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

0.71%

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NBR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Anthony Petrello (65 yo)

8.83yrs

Tenure

US$14,042,823

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 ($USD14.04M) is above average for companies of similar size in the US market ($USD2.04M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Petrello
Chairman8.83yrsUS$14.04m3.97%
$ 13.5m
William Restrepo
Chief Financial Officer6.42yrsUS$3.76m0.85%
$ 2.9m
Mark Andrews
Corporate Secretary12.92yrsUS$469.72k0.025%
$ 86.1k
R. Wood
VP & Chief Accounting Officerno dataUS$1.03mno data
Sri Valleru
Senior VP20.58yrsno datano data
Dennis Smith
Senior VP of Corporate Development & Investor Relations4.67yrsno datano data
Michael Rasmuson
Senior VPno datano datano data
Jade Strong
Senior VP & Chief Human Capital Officerno datano datano data
Travis Purvis
Senior Vice President of Eastern Hemisphere Operations1.58yrsno datano data
Donald Prejean
Senior Vice President of Canrig Operations1.58yrsno datano data
Subodh Saxena
Senior Vice President of Nabors Drilling Solutions1.58yrsno datano data
Joe Bruce
President of Canadano datano datano data

5.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: NBR's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Petrello
Chairman8.83yrsUS$14.04m3.97%
$ 13.5m
James Crane
Independent Director8.58yrsUS$385.65k0.075%
$ 255.5k
Anthony Chase
Independent Director1.5yrsUS$353.00k0.027%
$ 90.6k
Michael Linn
Independent Director8.58yrsUS$390.00k0.075%
$ 255.5k
John Yearwood
Independent Lead Director9.17yrsUS$441.42k0.14%
$ 462.0k
Tanya Beder
Independent Director3.17yrsUS$410.77k0.060%
$ 205.0k
John Kotts
Independent Director7.08yrsUS$430.00k0.076%
$ 258.1k

8.2yrs

Average Tenure

65yo

Average Age

Experienced Board: NBR's board of directors are considered experienced (8.2 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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$341.119m
  • Shares outstanding: 7.30m
  • 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
NBR.PRANYSE (New York Stock Exchange)6% PFD CNV SR AUSUSDMay 2018

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 23:56
End of Day Share Price2020/08/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.