Nabors Industries (NBR) AI Stock Analysis

• Market Cap: $468.80M
• Dividend Yield: N/A
• Average Volume (3M): 533.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -2.52%
• EPS Growth: -450.75%
• Country: US
• Employees: 12,400
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -22.36
• Shares Outstanding: 15,700,034
• 10 Day Avg. Volume: 500,275
• 30 Day Avg. Volume: 533,053
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.14
• Price to Cash Flow (P/CF): 0.70
• 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: $59.67
• Price Target Upside: 117.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Nabors Industries' overall score reflects significant financial challenges, including high debt and net losses, despite some positive developments in international markets and technological innovations. Technical indicators suggest weak market momentum, and the stock's valuation is unattractive due to negative earnings. Earnings call insights indicate mixed prospects with opportunities in international growth but ongoing cash flow issues.

Positive Factors

Acquisition Impact

The Parker acquisition adds Quail Tools, a premier tubular rental franchise, while also adding some US and international rigs.

Financial Performance

NBR expects the acquisition to add $190mn of run-rate EBITDA, while being free cash flow accretive in year 1.

Negative Factors

Earnings Guidance

4Q EBITDA misses by 2%, guides 1Q25 lower by 6%.

Investor Sentiment

Investors remain skeptical about management's expectation to be FCF positive and reduce debt by $150mn in 2025.

Nabors Industries Business Overview & Revenue Model

Company Description

Nabors Industries Ltd. is a leading provider of advanced drilling services for the energy industry, primarily focusing on oil and natural gas sectors. The company operates one of the world's largest land-based drilling rig fleets and also provides a significant number of offshore platform rigs in the United States and various international markets. Nabors is known for its innovative technologies, tools, and software that enhance drilling efficiency and safety.

How the Company Makes Money

Nabors Industries generates revenue through several key streams, primarily from drilling contracts with oil and gas exploration and production companies. The company earns money by leasing its extensive fleet of land and offshore drilling rigs to clients, who pay for the duration and complexity of the drilling projects. Nabors also offers related services such as directional drilling, rig equipment rentals, and drilling optimization software solutions, which contribute additional earnings. Furthermore, the company's strategic partnerships and long-term contracts with major energy companies ensure a steady flow of income, while technological advancements in drilling methods provide competitive advantages and opportunities for increased profitability.

Nabors Industries Financial Statement Overview

Summary

Nabors Industries exhibits financial instability with inconsistent revenue and persistent net losses. Although there are improvements in cost management, the high debt level and declining equity raise concerns about financial health.

Income Statement

Nabors Industries has experienced inconsistent revenue figures with significant volatility in net income. The gross profit margin has improved in the latest period, indicating better cost management. However, the company has struggled with achieving consistent net profitability, as evidenced by negative net income figures in recent years. Revenue growth has been erratic, pointing to instability in operational performance.

Balance Sheet

The balance sheet shows a high level of debt relative to equity, which poses financial risk. The debt-to-equity ratio remains elevated, suggesting potential leverage issues. Stockholders' equity has been declining, impacting the equity ratio negatively. This could indicate potential solvency concerns if not managed properly.

Cash Flow

Cash flow statements reveal moderate operational cash flow, but free cash flow has diminished over time. The operating cash flow to net income ratio is positive, indicating that the company generates cash despite net losses. However, free cash flow growth is weak, which could impact future liquidity and investment capacity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.93B	3.01B	2.65B	2.02B	2.13B
	Gross Profit
554.31M	570.31M	322.69M	37.27M	-52.73M
	EBIT
0.00	269.86M	-747.85M	-944.82M	-1.17B
	EBITDA
813.23M	959.70M	597.28M	376.77M	354.41M
	Net Income Common Stockholders
-176.08M	-50.25M	-307.22M	-543.71M	-762.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
397.30M	1.07B	452.31M	991.49M	481.75M
	Total Assets
4.50B	5.28B	4.73B	5.53B	5.50B
	Total Debt
2.51B	3.15B	2.54B	3.26B	2.97B
	Net Debt
2.12B	2.09B	2.09B	2.27B	2.50B
	Total Liabilities
3.30B	4.00B	3.51B	4.13B	3.80B
	Stockholders Equity
135.00M	326.61M	368.96M	590.66M	1.15B
Cash Flow		Free Cash Flow
13.51M	97.01M	127.64M	191.14M	154.24M
	Operating Cash Flow
581.43M	637.86M	501.09M	428.78M	349.76M
	Investing Cash Flow
-555.46M	-570.42M	-368.71M	-117.22M	-165.46M
	Financing Cash Flow
-662.05M	592.59M	-661.53M	488.42M	-148.00M

Nabors Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBR, the sentiment is Negative. The current price of 27.46 is below the 20-day moving average (MA) of 39.96, below the 50-day MA of 44.23, and below the 200-day MA of 65.64, indicating a bearish trend. The MACD of -1.03 indicates Negative momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NBR.

Nabors Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLB	73 Outperform	$45.07B	10.67	21.59%	3.47%	9.58%	6.53%
HP	67 Neutral	$1.99B	6.63	10.50%	6.68%	-2.59%	-27.85%
Sector *	57 Neutral	$7.68B	4.29	-3.52%	6.80%	-0.14%	-64.60%
RIG	51 Neutral	$2.09B	―	-4.95%	―	24.44%	53.99%
PTEN	47 Neutral	$2.20B	―	-23.39%	5.62%	29.70%	-341.43%
NBR	42 Neutral	$468.80M	―	-89.17%	―	-2.52%	-450.75%

Nabors Industries Corporate Events

Nabors Industries Announces CFO Retirement and Successor

Nabors Industries announced that its Chief Financial Officer, William Restrepo, will retire on September 30, 2025, after 11 years of service. Miguel Rodriguez, currently the Senior Vice President of Finance Operations, will succeed him. Restrepo has played a crucial role in the company’s success, including international expansion and significant financial restructuring. Rodriguez, who joined Nabors in 2019, is expected to continue this trajectory, having already contributed to the company’s financial operations and transformation.

Nabors Industries Completes Acquisition of Parker Wellbore

On March 11, 2025, Nabors Industries completed its acquisition of Parker Wellbore, enhancing its leadership in drilling and related services. The acquisition is expected to strengthen Nabors’ Drilling Solutions business, expand its market reach, and provide immediate accretion to free cash flow. Nabors anticipates realizing $40 million in recurring synergies by the end of 2025 and expects Parker to contribute approximately $150 million in adjusted EBITDA annually. The acquisition also triggered a change of control provision in Parker’s Term Loan, requiring repayment or refinancing within 30 days.