Nordic American Tankers Limited Fundamental Analysis
Nordic American Tankers Limited (NAT) shows moderate financial fundamentals with a PE ratio of 20.72, profit margin of 16.26%, and ROE of 11.76%. The company generates $0.3B in annual revenue with weak year-over-year growth of -16.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NAT's fundamental strength across five key dimensions:
Efficiency Score
WeakNAT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNAT trades at attractive valuation levels.
Growth Score
WeakNAT faces weak or negative growth trends.
Financial Health Score
ExcellentNAT maintains a strong and stable balance sheet.
Profitability Score
WeakNAT struggles to sustain strong margins.
Key Financial Metrics
Is NAT Expensive or Cheap?
P/E Ratio
NAT trades at 20.72 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NAT's PEG of 0.39 indicates potential undervaluation.
Price to Book
The market values Nordic American Tankers Limited at 2.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.96 times EBITDA. This is generally considered low.
How Well Does NAT Make Money?
Net Profit Margin
For every $100 in sales, Nordic American Tankers Limited keeps $16.26 as profit after all expenses.
Operating Margin
Core operations generate 19.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.76 in profit for every $100 of shareholder equity.
ROA
Nordic American Tankers Limited generates $6.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nordic American Tankers Limited produces operating cash flow of $50.43M, showing steady but balanced cash generation.
Free Cash Flow
Nordic American Tankers Limited generates weak or negative free cash flow of $-85.74M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.40 in free cash annually.
FCF Yield
NAT converts -7.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How NAT Stacks Against Its Sector Peers
| Metric | NAT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.72 | 25.90 | Better (Cheaper) |
| ROE | 11.76% | 1248.00% | Weak |
| Net Margin | 16.26% | -35020.00% (disorted) | Strong |
| Debt/Equity | 0.91 | 0.74 | Weak (High Leverage) |
| Current Ratio | 3.00 | 9.99 | Strong Liquidity |
| ROA | 6.03% | -1489331.00% (disorted) | Weak |
NAT outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nordic American Tankers Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-41.86%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-82.71%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-87.39%
Industry Style: Cyclical, Value, Infrastructure
Declining