Nabors Industries Ltd

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NBR : NYSE : Basic Materials
$10.00 | %
Today's Range: 9.98 - 10.56
Avg. Daily Volume: 7,017,000
09/23/16 - 4:02 PM ET

Financial Analysis


NABORS INDUSTRIES LTD's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. NABORS INDUSTRIES LTD has weak liquidity. Currently, the Quick Ratio is 0.88 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 24.65% 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 FY16 Q2 FY15
Net Sales ($mil)571.59863.31
EBITDA ($mil)165.51286.36
EBIT ($mil)-53.4168.16
Net Income ($mil)-184.65-36.82


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)255.86469.9
Total Assets ($mil)8656.3110517.28
Total Debt ($mil)3503.353757.72
Equity ($mil)3715.854931.96


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin40.2943.41
EBITDA Margin28.9533.17
Operating Margin-9.347.9
Sales Turnover0.320.56
Return on Assets-12.04-6.63
Return on Equity-26.73-14.23
Debt Q2 FY16 Q2 FY15
Current Ratio1.371.61
Debt/Capital0.490.43
Interest Expense45.2444.47
Interest Coverage-1.181.53


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)283.38291.86
Div / share0.060.06
EPS-0.65-0.14
Book value / share13.1116.9
Institutional Own % n/a n/a
Avg Daily Volume7080614.08318544.0

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 0.80 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 2.65. 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 27.49   NBR 4.24 Peers 11.99

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 120.26   NBR NA Peers 0.24

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 0.80 Peers 2.65   NBR -43.62 Peers -338.13

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 1.07 Peers 2.61   NBR -53.11 Peers -35.95

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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