Nordic American Tanker (NAT) AI Stock Analysis

• Market Cap: $514.55M
• Dividend Yield: 16.46%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 10.9
• Beta (1Y): -0.13
• Revenue Growth: -9.60%
• EPS Growth: -46.39%
• Country: US
• Employees: 17
• Sector: Industrials
• Sector Strength: 72
• Industry: Transportation
• EPS (TTM): 0.22
• Shares Outstanding: 211,750,660
• 10 Day Avg. Volume: 3,458,899
• 30 Day Avg. Volume: 2,770,313
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.30
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.50
• Price Target Upside: 44.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Nordic American Tanker demonstrates solid financial performance with strong profitability and a robust capital structure, though revenue decline and cash flow challenges require attention. The technical analysis signals caution, with a neutral to slightly bearish outlook. However, an attractive valuation with a low P/E ratio and high dividend yield provides a counterbalance, making the stock appealing for income-focused investors.

Nordic American Tanker Business Overview & Revenue Model

Company Description

Nordic American Tanker (NAT) is a shipping company specializing in the transportation of crude oil. Operating within the maritime shipping industry, NAT primarily focuses on owning and managing a fleet of Suezmax tankers, which are versatile vessels capable of navigating the Suez Canal when fully loaded. The company is headquartered in Bermuda and serves a global clientele, transporting crude oil across various international routes.

How the Company Makes Money

Nordic American Tanker generates revenue primarily through the chartering of its Suezmax tankers to oil companies and other entities requiring the transportation of crude oil. The company earns money by leasing its vessels under different types of contracts, including spot market charters, where rates are determined by current market conditions, and time charters, which offer fixed rates for longer periods. NAT's earnings are influenced by factors such as global oil demand, shipping capacity, and geopolitical events affecting oil transport routes. Additionally, the company's revenue is affected by its operational efficiency, fleet utilization rates, and partnerships with oil producers and traders who rely on NAT's shipping services to reach their destinations.

Nordic American Tanker Financial Statement Overview

Summary

Nordic American Tanker presents a solid financial position with strong profitability margins and efficient cash flow management. While revenue has faced a downturn, the company's operational efficiency and capital structure provide stability. Debt levels are moderate, and the company yields satisfactory returns on equity, though attention to cash flow growth is warranted.

Income Statement

Nordic American Tanker shows a strong gross profit margin of 39% TTM (Trailing-Twelve-Months), indicating efficient cost management. The net profit margin of 20.64% TTM is healthy, reflecting solid profitability. However, revenue declined by 22.25% compared to the previous year, signaling potential market challenges. EBIT and EBITDA margins are robust at 30.6% and 39.75% respectively, suggesting strong operational performance.

Balance Sheet

The company maintains a manageable debt-to-equity ratio of 0.54 TTM, indicating moderate leverage. Return on Equity (ROE) of 12.32% TTM is satisfactory, providing decent returns to shareholders. The equity ratio of 60.73% TTM reflects a strong capital structure with significant equity backing, although a slight decrease in stockholders' equity from the previous year is noted.

Cash Flow

Operating cash flow to net income ratio is high at 1.89 TTM, indicating efficient conversion of income to cash. Free cash flow growth rate is negative due to lower free cash flow, highlighting potential cash management issues. However, the free cash flow to net income ratio of 0.68 TTM suggests a reasonable cash buffer.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
304.39M	391.69M	339.34M	195.76M	354.62M	317.22M
	Gross Profit
118.78M	150.78M	54.97M	-68.53M	98.81M	45.45M
	EBIT
93.16M	127.89M	41.87M	-92.56M	13.68M	-35.93M
	EBITDA
121.00M	179.29M	92.60M	-24.69M	149.25M	96.23M
	Net Income Common Stockholders
62.85M	98.71M	15.10M	-119.48M	50.03M	-10.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.33M	31.08M	59.58M	34.74M	57.85M	49.67M
	Total Assets
1.07B	879.20M	880.74M	903.06M	974.35M	1.03B
	Total Debt
436.53M	301.60M	306.04M	320.96M	356.71M	399.83M
	Net Debt
387.20M	270.52M	246.45M	286.22M	298.86M	350.99M
	Total Liabilities
469.08M	340.89M	340.75M	352.93M	375.22M	435.48M
	Stockholders Equity
602.03M	538.30M	539.98M	550.13M	599.13M	595.42M
Cash Flow		Free Cash Flow
42.83M	65.78M	-71.28M	-62.19M	92.87M	50.33M
	Operating Cash Flow
118.55M	139.44M	24.13M	-44.46M	110.94M	52.86M
	Investing Cash Flow
-75.72M	-73.67M	-14.34M	-3.46M	-17.48M	-2.32M
	Financing Cash Flow
-68.03M	-95.67M	9.01M	30.51M	-93.08M	-38.25M

Nordic American Tanker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NAT, the sentiment is Negative. The current price of 2.43 is below the 20-day moving average (MA) of 2.51, below the 50-day MA of 2.58, and below the 200-day MA of 3.12, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 19.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NAT.

Nordic American Tanker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TNK	78 Outperform	$1.26B	3.29	23.93%	2.73%	-16.00%	-23.43%
FRO	74 Outperform	$3.37B	7.43	21.46%	12.88%	―	―
STNG	73 Outperform	$1.92B	3.02	24.68%	4.16%	-8.16%	15.26%
DHT	73 Outperform	$1.65B	9.56	17.56%	9.29%	2.11%	13.10%
NAT	70 Outperform	$514.55M	10.90	8.91%	16.46%	-9.60%	-46.39%
INSW	63 Neutral	$1.65B	4.19	23.33%	17.20%	-11.21%	-25.50%
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%