Nordic American Tanker (NAT) AI Stock Analysis

• Market Cap: $700.89M
• Dividend Yield: 8.16%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 50.3
• Beta (1Y): 0.37
• Revenue Growth: -12.89%
• EPS Growth: -78.39%
• Country: US
• Employees: 15
• Sector: Energy
• Sector Strength: 52
• Industry: Marine Shipping
• EPS (TTM): -0.02
• Shares Outstanding: 211,750,660
• 10 Day Avg. Volume: 2,676,944
• 30 Day Avg. Volume: 2,014,198
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 5.13
• Enterprise Value/Gross Profit: 13.16
• Enterprise Value/Ebitda: 12.23
• 1Y Price Target: $3.75
• Price Target Upside: 13.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: $3.50 ▲(5.74% Upside)

Nordic American Tanker's overall stock score is driven by strong technical momentum, despite financial challenges and a high valuation. The attractive dividend yield provides some offset to valuation concerns, but investors should be cautious of potential overbought conditions and financial risks.

Nordic American Tanker Business Overview & Revenue Model

Company Description

Nordic American Tanker (NAT) is a publicly traded company specializing in the transportation of crude oil. Operating a fleet of modern double-hulled tankers, NAT focuses on providing reliable and efficient shipping services to the global oil industry. The company primarily operates in the maritime shipping sector, offering its services to oil producers, traders, and other stakeholders in the energy market.

How the Company Makes Money

NAT generates revenue primarily through the chartering of its fleet to oil companies and traders, who pay for the transportation of crude oil across international waters. The company's revenue model is largely based on time charters and spot charters, where it earns fees based on the duration of the lease or the prevailing market rates for oil transport. Key revenue streams include long-term contracts with established oil producers and opportunistic spot market transactions, which can vary significantly based on market conditions and demand for oil shipping. The company's earnings are influenced by fluctuations in oil prices, shipping rates, and operational efficiency, as well as its ability to maintain a well-managed fleet and capitalize on favorable market trends.

Nordic American Tanker Financial Statement Overview

Summary

Nordic American Tanker's financials show a mixed performance. The income statement reflects solid gross profit margins but mixed net profitability. The balance sheet reveals reasonable stability with manageable leverage, though debt levels need monitoring. Cash flow statements indicate strong cash conversion and improving free cash flow, suggesting solid liquidity. Overall, the company shows potential but faces challenges in growth and leverage 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	176.52M	225.10M	391.69M	339.34M	195.76M	354.62M
Gross Profit	68.74M	162.29M	150.78M	54.97M	-68.53M	98.81M
EBITDA	74.00M	133.46M	179.29M	92.60M	-24.69M	149.25M
Net Income	13.38M	46.64M	98.71M	15.10M	-119.48M	50.03M
Balance Sheet
Total Assets	957.39M	817.59M	879.20M	880.74M	903.06M	974.35M
Cash, Cash Equivalents and Short-Term Investments	94.49M	39.18M	31.08M	59.58M	34.74M	57.85M
Total Debt	442.30M	269.70M	301.60M	306.04M	320.96M	356.71M
Total Liabilities	472.35M	308.77M	340.89M	340.75M	352.93M	375.22M
Stockholders Equity	485.05M	508.81M	538.30M	539.98M	550.13M	599.13M
Cash Flow
Free Cash Flow	-81.42M	125.54M	65.78M	-71.28M	-62.19M	92.87M
Operating Cash Flow	54.79M	128.16M	139.44M	24.13M	-44.46M	110.94M
Investing Cash Flow	-89.46M	-2.62M	-73.67M	-14.34M	-3.46M	-17.48M
Financing Cash Flow	80.56M	-115.05M	-95.67M	9.01M	30.51M	-93.08M

Nordic American Tanker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.31 is above the 20-day moving average (MA) of 3.07, above the 50-day MA of 2.84, and above the 200-day MA of 2.55, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 68.94 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, 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	81 Outperform	1.16B	2.97	23.89%	6.01%	4.43%	17.82%
ASC	78 Outperform	539.89M	12.85	7.26%	2.86%	-21.59%	-70.74%
ECO	73 Outperform	961.81M	14.45	15.69%	5.99%	-14.77%	-44.86%
SB	70 Neutral	466.58M	10.68	11.71%	4.39%	-9.65%	-46.46%
GNK	67 Neutral	796.90M	52.77	1.73%	5.39%	-17.15%	2.40%
NAT	65 Neutral	$700.89M	50.31	2.65%	8.16%	-12.89%	-78.39%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%