Nabors Industries Ltd.

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NBR : NYSE : Industrial Services
$6.89 | %
Today's Range: 6.6572 - 6.93
Avg. Daily Volume: 1.008E7
02/23/18 - 4:03 PM ET

Financial Analysis


NABORS INDUSTRIES LTD's gross profit margin for the third quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. NABORS INDUSTRIES LTD has average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 19.22% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)662.1519.73
EBITDA ($mil)145.26146.41
EBIT ($mil)-71.82-74.3
Net Income ($mil)-148.53-111.21


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)220.33200.65
Total Assets ($mil)8088.598424.5
Total Debt ($mil)3958.813476.1
Equity ($mil)2901.413591.93


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin33.3541.04
EBITDA Margin21.9328.17
Operating Margin-10.85-14.3
Sales Turnover0.30.29
Return on Assets-9.47-10.18
Return on Equity-24.77-23.44
Debt Q3 FY17 Q3 FY16
Current Ratio1.411.36
Debt/Capital0.580.49
Interest Expense54.6146.84
Interest Coverage-1.32-1.59


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)285.88283.33
Div / share0.060.06
EPS-0.42-0.35
Book value / share10.1512.68
Institutional Own % n/a n/a
Avg Daily Volume1.0548416E71.000307E7

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.65 indicates a significant discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 2.86. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, NABORS INDUSTRIES LTD proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NBR NM Peers 86.22   NBR 20.78 Peers 20.32

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

NBR's P/E is negative making this valuation measure meaningless.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

NBR is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NBR NM Peers 48.53   NBR NA Peers 0.47

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

NBR's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NBR 0.65 Peers 2.86   NBR 15.44 Peers 83.98

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

NBR is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, NBR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NBR 0.79 Peers 2.44   NBR -1.36 Peers 18.27

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

NBR is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

NBR significantly trails its peers on the basis of sales growth

 

 

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