Rating Change #3
Nabors Industries Ltd (NBR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, impressive record of earnings per share growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 16.9%. Since the same quarter one year prior, revenues rose by 31.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- NABORS INDUSTRIES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NABORS INDUSTRIES LTD increased its bottom line by earning $1.16 versus $0.37 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $1.16).
- 37.30% is the gross profit margin for NABORS INDUSTRIES LTD which we consider to be strong. Regardless of NBR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NBR's net profit margin of -6.10% significantly underperformed when compared to the industry average.
- NBR's debt-to-equity ratio of 0.82 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.17 is sturdy.
Nabors Industries Ltd., together with its subsidiaries, operates as a land drilling contractor worldwide. The company has a P/E ratio of 17.8, above the average energy industry P/E ratio of 12.8 and equal to the S&P 500 P/E ratio of 17.7. Nabors has a market cap of $4.99 billion and is part of the basic materials sector and energy industry. Shares are up 20.2% year to date as of the close of trading on Tuesday.You can view the full Nabors Ratings Report or get investment ideas from our investment research center.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV