Nabors Industries Ltd

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NBR : NYSE : Basic Materials
$7.48 -0.16 | -2.09%
Today's Range: 7.41 - 7.68
Avg. Daily Volume: 7951900.0
09/19/17 - 4:03 PM ET

Financial Analysis


NABORS INDUSTRIES LTD's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. NABORS INDUSTRIES LTD has weak liquidity. Currently, the Quick Ratio is 0.93 which shows a lack of 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 17.93% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)631.36571.59
EBITDA ($mil)138.01165.82
EBIT ($mil)-70.08-53.09
Net Income ($mil)-132.95-184.65


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)232.04255.86
Total Assets ($mil)8092.468656.31
Total Debt ($mil)3740.373503.35
Equity ($mil)3049.243715.85


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin33.8740.29
EBITDA Margin21.8529.01
Operating Margin-11.1-9.29
Sales Turnover0.280.32
Return on Assets-9.0-12.04
Return on Equity-22.83-26.73
Debt Q2 FY17 Q2 FY16
Current Ratio1.341.37
Debt/Capital0.550.49
Interest Expense54.6945.24
Interest Coverage-1.28-1.17


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)285.83283.38
Div / share0.060.06
EPS-0.41-0.65
Book value / share10.6713.11
Institutional Own % n/a n/a
Avg Daily Volume8151214.08980837.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.70 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 2.67. 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 380.77   NBR 11.38 Peers 28.19

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.

 

Discount. 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 significant discount 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 47.06   NBR NA Peers 0.50

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 0.70 Peers 2.67   NBR 29.80 Peers 31.16

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.

 

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

NBR is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NBR 0.94 Peers 2.66   NBR -18.26 Peers -7.79

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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