Nordic American Tanker (NAT) AI Stock Analysis

• Market Cap: $552.67M
• Dividend Yield: 10.73%
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.33
• Revenue Growth: -3.87%
• EPS Growth: -46.50%
• Country: US
• Employees: 15
• Sector: Industrials
• Sector Strength: 87
• Industry: Marine Shipping
• EPS (TTM): 0.02
• Shares Outstanding: 211,750,660
• 10 Day Avg. Volume: 3,172,586
• 30 Day Avg. Volume: 2,702,304
• PEG Ratio: -0.70
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.85
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 8.32
• Enterprise Value/Ebitda: 1.84
• 1Y Price Target: $3.50
• Price Target Upside: 30.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: $3.00 ▲(11.94%Upside)

Nordic American Tanker receives a moderate overall score, driven primarily by its solid financial performance and attractive valuation. The company's strong cash flow and high dividend yield are significant strengths. However, mixed technical indicators and challenges in growth and leverage management temper the outlook. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

Nordic American Tanker Business Overview & Revenue Model

Company Description

Nordic American Tanker (NAT) is a leading international shipping company specializing in the transportation of crude oil. Established in Bermuda, the company operates a fleet of Suezmax tankers, which are medium-sized vessels designed to carry crude oil and petroleum products. NAT is committed to providing safe, reliable, and efficient shipping services to its global clientele, primarily focusing on spot market operations and short-term contracts.

How the Company Makes Money

Nordic American Tanker generates revenue primarily through the chartering of its Suezmax tankers for the transportation of crude oil. The company operates mainly in the spot market, where it offers its vessels for single voyages based on the prevailing market rates, allowing NAT to capitalize on fluctuations in shipping demand and oil prices. Additionally, NAT engages in short-term time charters, offering fixed-rate services over set periods, providing some revenue stability. Significant factors contributing to its earnings include global oil demand, geopolitical events affecting oil supply routes, and the overall health of the shipping market. NAT's ability to maintain a modern and efficient fleet, along with strategic partnerships with oil companies and trading houses, also plays a critical role in its financial performance.

Nordic American Tanker Financial Statement Overview

Summary

The financials show moderate performance: solid gross margins but mixed net profitability, stable balance sheet with manageable leverage, and strong cash flow conversion. Challenges include inconsistent revenue growth and debt management.

Income Statement

The income statement shows a mixed performance. The TTM gross profit margin is approximately 41.5%, indicating solid profitability. However, the net profit margin is around 15.3%, reflecting moderate profitability after expenses. Revenue growth has been inconsistent, with a decline in recent years, but the TTM figures suggest some recovery. The EBIT and EBITDA margins at 27.8% and 34.2%, respectively, indicate decent operational efficiency.

Balance Sheet

The balance sheet reveals a relatively stable financial position with an equity ratio of 57.7%. The debt-to-equity ratio is 0.68, reflecting a moderate level of leverage. Return on equity stands at 7.2%, indicating modest profitability relative to shareholder investments. Overall, the balance sheet shows reasonable stability but highlights potential risks associated with debt levels.

Cash Flow

Cash flow analysis suggests strong operational cash generation, with an operating cash flow to net income ratio of 2.4 for TTM, showing effective cash conversion. Free cash flow growth has been erratic, but TTM figures suggest improvement. The free cash flow to net income ratio of 2.3 indicates efficient free cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	234.18M	225.10M	391.69M	339.34M	195.76M	354.62M
Gross Profit	97.28M	162.29M	150.78M	54.97M	-68.53M	98.81M
EBITDA	80.11M	133.46M	179.29M	92.60M	-24.69M	149.25M
Net Income	35.83M	46.64M	98.71M	15.10M	-119.48M	50.03M
Balance Sheet
Total Assets	867.27M	817.59M	879.20M	880.74M	903.06M	974.35M
Cash, Cash Equivalents and Short-Term Investments	103.23M	39.18M	31.08M	59.58M	34.74M	57.85M
Total Debt	340.45M	269.70M	301.60M	306.04M	320.96M	356.71M
Total Liabilities	366.68M	308.77M	340.89M	340.75M	352.93M	375.22M
Stockholders Equity	500.58M	508.81M	538.30M	539.98M	550.13M	599.13M
Cash Flow
Free Cash Flow	83.45M	125.54M	65.78M	-71.28M	-62.19M	92.87M
Operating Cash Flow	86.17M	128.16M	139.44M	24.13M	-44.46M	110.94M
Investing Cash Flow	7.35M	-2.62M	-73.67M	-14.34M	-3.46M	-17.48M
Financing Cash Flow	-40.99M	-115.05M	-95.67M	9.01M	30.51M	-93.08M

Nordic American Tanker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.68
• 50DMA: Positive
• 100DMA: Positive
• 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 2.68 is below the 20-day moving average (MA) of 2.72, above the 50-day MA of 2.62, and below the 200-day MA of 2.70, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 13.63 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	83 Outperform	$931.79M	2.47	27.25%	8.02%	3.94%	19.85%
ASC	81 Outperform	$414.36M	4.47	15.97%	1.96%	-2.75%	-12.67%
ECO	77 Outperform	$701.71M	8.93		5.78%	-12.00%	-40.93%
NAT	70 Outperform	$552.67M	15.24	6.96%	10.73%	-3.87%	-46.50%
SB	70 Neutral	$372.41M	5.44	9.82%	5.49%	-2.98%	-0.96%
GNK	68 Neutral	$569.21M	12.70	5.02%	4.35%	-7.38%	1295.53%
Sector *	65 Neutral	$10.65B	15.52	5.51%	1.92%	2.72%	-26.34%