Nordic American Tanker (NAT) AI Stock Analysis

• Market Cap: $1.06B
• Dividend Yield: 10.65%
• Average Volume (3M): 4.89M
• Price to Earnings (P/E): 59.4
• Beta (1Y): 0.71
• Revenue Growth: -16.03%
• EPS Growth: -97.01%
• Country: US
• Employees: 15
• Sector: Energy
• Sector Strength: 52
• Industry: Marine Shipping
• EPS (TTM): 0.06
• Shares Outstanding: 211,750,660
• 10 Day Avg. Volume: 7,792,370
• 30 Day Avg. Volume: 4,890,690
• PEG Ratio: -0.81
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 2.49
• P/FCF Ratio: -6.25
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 4.93
• Enterprise Value/Gross Profit: 24.91
• Enterprise Value/Ebitda: 13.70
• 1Y Price Target: $7.50
• Price Target Upside: 49.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.48
• Revenue Forecast (FY): $272.47M

• Rating: 51 Neutral
• Price Target: $6.00 ▲(19.52% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is held back primarily by weakening financial performance—especially the sharp 2025 cash-flow decline and higher leverage—alongside a very high P/E. Technicals are supportive due to a strong uptrend, but extremely overbought momentum signals add near-term risk, and the high dividend yield only partially offsets valuation concerns.

Positive Factors

Modern fleet & safety standards

Ownership of modern, double-hulled tankers reduces regulatory and environmental compliance risk and increases eligibility for charters by major oil companies. Over 2–6 months this supports stable charter demand, lower incident-related costs, and a competitive advantage versus older tonnage.

Long, consistent dividend history

A 113-quarter dividend track record signals a durable shareholder-return policy and governance discipline. That commitment can attract income-focused capital and provides a structural signal of management priorities, supporting investor confidence through cyclical freight cycles.

Active fleet renewal and capital recycling

Selling debt-free older vessels while contracting newbuilds indicates proactive fleet renewal and capacity management. This capital recycling can improve fuel and operating efficiency long-term, align capacity with market demand, and support sustained charter competitiveness over multi-year horizons.

Negative Factors

Margin compression

Sharp margin erosion materially reduces the company’s profitability cushion and ability to absorb freight volatility. Persistently lower gross and net margins constrain retained earnings and reinvestment capacity, increasing reliance on external financing and heightening long-term earnings vulnerability.

Elevated leverage

A near-1.0 debt/equity ratio raises interest and refinancing exposure, limiting financial flexibility. In a cyclical shipping sector, higher leverage amplifies downside risk during rate troughs, constrains strategic options like opportunistic acquisitions, and increases the probability of balance-sheet strain.

Negative free cash flow

Negative free cash flow undermines the company’s ability to fund dividends, newbuild capex, or buybacks from operations. Over months, persistent cash-generation shortfalls force reliance on asset sales or external capital, raising dilution or refinancing risk and stressing liquidity during market downturns.

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 generates revenue primarily through the chartering of its tanker fleet to oil and gas companies for the transportation of crude oil. The company operates on a time charter and spot market basis, allowing it to capitalize on fluctuating freight rates. Key revenue streams include long-term charter agreements, which provide steady income, and spot market charters, which can yield higher returns during periods of increased demand for shipping capacity. Additionally, NAT may benefit from strategic partnerships with major oil companies, enabling them to secure long-term contracts and optimize fleet utilization. The company's focus on maintaining a modern fleet and adhering to safety standards also helps attract clients, thereby supporting its revenue growth.

Nordic American Tanker Financial Statement Overview

Summary

Financial results are highly cyclical with a sharp 2025 deterioration: revenue fell ($292M vs. $350M in 2024), net margin compressed to ~4% (from ~13% in 2024), leverage increased (debt-to-equity ~0.95 vs. ~0.53), and cash generation weakened materially with deeply negative free cash flow (~-$117M). Meaningful equity support helps, but weaker profitability plus negative FCF raises risk.

Income Statement

Results show high cyclicality. Revenue is down in 2025 ($292M) versus 2024 ($350M) and 2023 ($392M), and profitability compressed sharply: net margin fell to ~4% in 2025 from ~13% in 2024 and ~25% in 2023. The company has demonstrated it can earn strong profits in upcycles (2023–2024), but the sharp swing from strong margins to low margins (and the 2021 loss year) reduces confidence in earnings durability.

Balance Sheet

Leverage moved in the wrong direction in 2025: debt rose to ~$424M and debt-to-equity increased to ~0.95 (from ~0.53 in 2024). Equity remains sizable (~$446M) and total assets are ~$902M, so the balance sheet is not distressed, but the higher leverage combined with weaker earnings is a key risk for a cyclical marine shipping business. Returns on equity also dropped to ~2.8% in 2025 from ~9.2% in 2024.

Cash Flow

Cash generation deteriorated materially in 2025. Operating cash flow fell to ~$20M (down from ~$128M in 2024), and free cash flow turned deeply negative (~-$117M) after being strongly positive in 2024 (~$126M). Cash flow in 2025 did not closely track reported profits (free cash flow was far below net income), highlighting potential capital spending intensity and/or working-capital pressure—an important weakness given the uptick in leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	292.42M	349.74M	391.69M	339.34M	195.76M
Gross Profit	57.87M	106.14M	150.78M	54.97M	-68.53M
EBITDA	86.73M	133.52M	180.73M	92.60M	-24.69M
Net Income	12.27M	46.64M	98.71M	15.10M	-119.42M
Balance Sheet
Total Assets	902.16M	817.59M	879.20M	880.74M	851.15M
Cash, Cash Equivalents and Short-Term Investments	45.86M	39.18M	31.08M	59.58M	34.74M
Total Debt	424.14M	269.70M	301.60M	306.04M	320.96M
Total Liabilities	456.64M	308.77M	340.89M	340.75M	352.93M
Stockholders Equity	445.52M	508.81M	538.30M	539.98M	498.22M
Cash Flow
Free Cash Flow	-116.61M	125.54M	65.78M	-71.28M	-62.19M
Operating Cash Flow	19.84M	128.16M	139.44M	24.13M	-44.46M
Investing Cash Flow	-89.70M	-2.62M	-73.67M	-14.34M	-3.46M
Financing Cash Flow	70.98M	-115.05M	-95.67M	9.01M	30.51M

Nordic American Tanker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 5.02 is below the 20-day moving average (MA) of 5.11, above the 50-day MA of 4.39, and above the 200-day MA of 3.29, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 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
ECO	71 Outperform	kr1.71B	8.98	―	6.50%	-12.47%	-34.41%
GNK	69 Neutral	$855.96M	―	-0.49%	4.04%	-24.58%	-110.22%
ASC	69 Neutral	$554.11M	12.03	6.37%	2.80%	-26.81%	-78.30%
SB	66 Neutral	$607.33M	12.88	4.68%	4.16%	-13.74%	-59.37%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SFL	59 Neutral	$1.31B	-39.32	-2.63%	12.24%	-11.10%	-101.57%
NAT	51 Neutral	$1.06B	59.37	2.59%	10.65%	-16.03%	-97.01%