Nabors Industries Ltd

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NBR : NYSE : Basic Materials
$15.31 | %
Today's Range: 15.03 - 15.37
Avg. Daily Volume: 6489600.0
02/17/17 - 4:03 PM ET

Financial Analysis


NABORS INDUSTRIES LTD's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. NABORS INDUSTRIES LTD has weak liquidity. Currently, the Quick Ratio is 0.89 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 20.22% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)519.73847.55
EBITDA ($mil)146.41242.11
EBIT ($mil)-74.32.0
Net Income ($mil)-111.21-295.83


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)200.65276.56
Total Assets ($mil)8424.59929.18
Total Debt ($mil)3476.13746.76
Equity ($mil)3591.934502.31


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin41.0438.86
EBITDA Margin28.1728.56
Operating Margin-14.30.24
Sales Turnover0.290.49
Return on Assets-10.18-11.07
Return on Equity-23.44-23.42
Debt Q3 FY16 Q3 FY15
Current Ratio1.361.64
Debt/Capital0.490.45
Interest Expense46.8444.45
Interest Coverage-1.590.05


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)283.33283.53
Div / share0.060.06
EPS-0.35-0.86
Book value / share12.6815.88
Institutional Own % n/a n/a
Avg Daily Volume6436719.07110541.0

Valuation


HOLD. 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 1.23 indicates a significant discount versus the S&P 500 average of 2.89 and a significant discount versus the industry average of 3.88. The price-to-sales ratio is below the S&P 500 average and is well below 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 73.76   NBR 6.64 Peers 20.42

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 87.36   NBR NA Peers 0.87

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 1.23 Peers 3.88   NBR 17.91 Peers -88.37

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.

 

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

NBR is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NBR 1.81 Peers 3.50   NBR -50.55 Peers -31.70

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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