Nordic American Tanker (NAT) AI Stock Analysis

• Market Cap: $535.73M
• Dividend Yield: 13.44%
• Average Volume (3M): 3.07M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.28
• Revenue Growth: -2.37%
• EPS Growth: -52.77%
• Country: US
• Employees: 17
• Sector: Industrials
• Sector Strength: 70
• Industry: Marine Shipping
• EPS (TTM): 0.22
• Shares Outstanding: 211,750,660
• 10 Day Avg. Volume: 3,186,001
• 30 Day Avg. Volume: 3,074,503
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.36
• 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: 38.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Nordic American Tanker shows strong cash flow generation and attractive dividends, which are key strengths. The stock's reasonable valuation and positive technical indicators suggest potential upside. However, challenges include negative revenue trends and declining profitability margins. The equity position remains stable with reduced leverage, balancing the overall risk profile.

Nordic American Tanker Business Overview & Revenue Model

Company Description

Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 24 Suezmax crude oil tankers. The company was formerly known as Nordic American Tanker Shipping Limited and changed its name to Nordic American Tankers Limited in June 2011. The company was incorporated in 1995 and is based in Hamilton, Bermuda.

How the Company Makes Money

Nordic American Tanker makes money by chartering its fleet of Suezmax oil tankers to customers, primarily oil companies and refineries, who need to transport crude oil across international waters. The company earns revenue through time charters, spot charters, and pool arrangements. Time charters involve leasing a vessel for a fixed period at a predetermined rate, providing stable and predictable income. Spot charters are short-term contracts based on current market rates, allowing NAT to capitalize on favorable market conditions. Additionally, NAT participates in tanker pools, which are collaborations of similar vessels managed by a third party to optimize fleet utilization and revenue. These diverse revenue streams, along with strategic partnerships and market positioning, contribute significantly to NAT's earnings.

Nordic American Tanker Financial Statement Overview

Summary

Nordic American Tanker demonstrates strong cash flow performance despite revenue volatility and declining net income margins. Improved cost management is evident from higher gross and EBITDA margins. The company maintains a stable equity position with reduced leverage, though declining ROE highlights profitability challenges. Overall, the financial health suggests resilience in cash generation, albeit with some pressure on profitability and growth.

Income Statement

Nordic American Tanker has shown a volatile revenue trend with a significant drop in 2024 compared to the previous year. The Gross Profit Margin improved to 72.1% in 2024 from 38.5% in 2023, indicating better cost management. However, the Net Profit Margin declined to 20.7% in 2024 from 25.2% in 2023, reflecting reduced profitability. The EBIT Margin is 34.3%, down from 32.7% in 2023, while the EBITDA Margin improved to 59.3%, showing strong operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio decreased to 0.53 in 2024 from 0.56 in 2023, indicating improved leverage. Return on Equity (ROE) was 9.2% in 2024, down from 18.3% in 2023, reflecting decreased profitability. The Equity Ratio remains stable at 62.2%, suggesting a solid equity base.

Cash Flow

Nordic American Tanker showed a remarkable Free Cash Flow growth of 85.5% in 2024, highlighting strong cash generation. The Operating Cash Flow to Net Income Ratio was 2.67, indicating efficient cash conversion. The Free Cash Flow to Net Income Ratio was 2.61, underscoring robust cash flow relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
225.10M	391.69M	339.34M	195.76M	354.62M
	Gross Profit
162.29M	150.78M	54.97M	-68.53M	98.81M
	EBIT
77.31M	127.89M	41.87M	-92.56M	13.68M
	EBITDA
133.46M	179.29M	92.60M	-24.69M	149.25M
	Net Income Common Stockholders
46.64M	98.71M	15.10M	-119.48M	50.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.18M	31.08M	59.58M	34.74M	57.85M
	Total Assets
817.59M	879.20M	880.74M	903.06M	974.35M
	Total Debt
269.70M	301.60M	306.04M	320.96M	356.71M
	Net Debt
230.53M	270.52M	246.45M	286.22M	298.86M
	Total Liabilities
308.77M	340.89M	340.75M	352.93M	375.22M
	Stockholders Equity
508.81M	538.30M	539.98M	550.13M	599.13M
Cash Flow		Free Cash Flow
121.99M	65.78M	-71.28M	-62.19M	92.87M
	Operating Cash Flow
124.61M	139.44M	24.13M	-44.46M	110.94M
	Investing Cash Flow
-2.62M	-73.67M	-14.34M	-3.46M	-17.48M
	Financing Cash Flow
-111.50M	-95.67M	9.01M	30.51M	-93.08M

Nordic American Tanker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.53
• 50DMA: Positive
• 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 Positive. The current price of 2.53 is above the 20-day moving average (MA) of 2.48, above the 50-day MA of 2.52, and below the 200-day MA of 2.98, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 15.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NAT.

Nordic American Tanker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSL	78 Outperform	$676.13M	1.96	26.71%	8.69%	5.37%	16.97%
ASC	71 Outperform	$375.83M	3.04	21.87%	10.23%	46.10%	―
SB	70 Outperform	$337.92M	3.86	11.99%	6.23%	8.17%	35.92%
GNK	69 Neutral	$515.08M	6.85	8.30%	11.07%	10.21%	―
NAT	68 Neutral	$535.73M	11.35	8.91%	13.44%	-2.37%	-52.77%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%