Nordic American Tanker (NAT) AI Stock Analysis

• Market Cap: $791.95M
• Dividend Yield: 7.22%
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): 415.6
• Beta (1Y): 0.61
• Revenue Growth: -16.03%
• EPS Growth: -97.01%
• Country: US
• Employees: 15
• Sector: Energy
• Sector Strength: 52
• Industry: Marine Shipping
• EPS (TTM): -0.01
• Shares Outstanding: 211,750,660
• 10 Day Avg. Volume: 2,670,969
• 30 Day Avg. Volume: 2,586,339
• PEG Ratio: -0.21
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 2.32
• P/FCF Ratio: 4.17
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 3.67
• Enterprise Value/Gross Profit: 22.09
• Enterprise Value/Ebitda: 11.10
• 1Y Price Target: $3.00
• Price Target Upside: -19.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.13
• Revenue Forecast (FY): $202.55M

• Rating: 60 Neutral
• Price Target: $4.00 ▲(6.95% Upside)

Nordic American Tanker's overall score is primarily influenced by its financial challenges, including declining revenue and profit margins, and high leverage. The technical analysis shows positive momentum, but the valuation indicates potential overvaluation despite a high dividend yield.

Positive Factors

Fleet Expansion

The planned fleet expansion with new Suezmax tankers enhances capacity and positions NAT to capitalize on future demand, supporting long-term growth.

Operational Efficiency

Maintaining positive EBIT and EBITDA margins indicates strong operational efficiency, which is crucial for sustaining profitability and competitiveness.

Dividend Consistency

Consistent dividend payments reflect financial stability and a commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Declining Revenue

A significant decline in revenue growth indicates potential challenges in market demand or competitive positioning, impacting long-term financial health.

High Leverage

Increased leverage can strain financial flexibility and elevate risk, potentially impacting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow suggests liquidity challenges, which could hinder the company's ability to fund operations and strategic initiatives.

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

Nordic American Tanker is facing a challenging financial environment with declining revenues and increased leverage. Despite positive operational margins, significant cash flow challenges and increased debt levels pose risks to financial stability.

Income Statement

Nordic American Tanker has shown a significant decline in revenue growth, with a TTM revenue decrease of 24.62%. Margins have also contracted, with the TTM gross profit margin at 38.94% and net profit margin at 7.58%, both lower than the previous year. Despite these challenges, the company maintains a positive EBIT margin of 25.58% and EBITDA margin of 33.44%, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.91 in the TTM, indicating higher leverage compared to the previous year. However, the equity ratio remains stable, and the return on equity is positive at 2.67%. The balance sheet reflects a cautious approach to managing debt, but the increased leverage could pose risks if not managed carefully.

Cash Flow

Nordic American Tanker faces challenges in cash flow management, with a significant decline in free cash flow growth by 197.57% in the TTM. The operating cash flow to net income ratio is 0.85, suggesting that cash flow from operations is not fully covering net income. The negative free cash flow to net income ratio indicates potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	280.95M	349.74M	391.69M	339.34M	195.76M	354.62M
Gross Profit	46.64M	106.14M	150.78M	54.97M	-68.53M	98.81M
EBITDA	92.83M	133.52M	180.73M	92.60M	-24.69M	149.25M
Net Income	1.91M	46.64M	98.71M	15.10M	-119.42M	50.03M
Balance Sheet
Total Assets	926.96M	817.59M	879.20M	880.74M	851.15M	974.35M
Cash, Cash Equivalents and Short-Term Investments	67.58M	39.18M	31.08M	59.58M	34.74M	57.85M
Total Debt	433.05M	269.70M	301.60M	306.04M	320.96M	356.71M
Total Liabilities	465.84M	308.77M	340.89M	340.75M	352.93M	375.22M
Stockholders Equity	461.12M	508.81M	538.30M	539.98M	498.22M	599.13M
Cash Flow
Free Cash Flow	-111.92M	125.54M	65.78M	-71.28M	-62.19M	92.87M
Operating Cash Flow	23.86M	128.16M	139.44M	24.13M	-44.46M	110.94M
Investing Cash Flow	-89.03M	-2.62M	-73.67M	-14.34M	-3.46M	-17.48M
Financing Cash Flow	83.22M	-115.05M	-95.67M	9.01M	30.51M	-93.08M

Nordic American Tanker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3.74 is above the 20-day moving average (MA) of 3.73, above the 50-day MA of 3.54, and above the 200-day MA of 2.85, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 60.71 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
ECO	78 Outperform	$1.31B	15.56	―	5.72%	-12.47%	-34.41%
SB	72 Outperform	$543.36M	14.57	5.58%	3.77%	-13.74%	-59.37%
ASC	70 Outperform	$480.58M	15.19	5.28%	2.54%	-26.81%	-78.30%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NAT	60 Neutral	$791.95M	415.56	0.39%	7.22%	-16.03%	-97.01%
GNK	60 Neutral	$707.54M	47.21	-0.78%	3.88%	-24.58%	-110.22%
SFL	58 Neutral	$1.20B	-477.59	-0.15%	12.15%	-11.10%	-101.57%

Nordic American Tanker Corporate Events

Nordic American Tankers Reports Q3 2025 Earnings and Announces New Fleet Expansion

On November 28, 2025, Nordic American Tankers Limited announced its third-quarter earnings and dividend report. The company declared a dividend of $0.13 per share, marking its 113th consecutive quarterly cash dividend, payable on December 22, 2025. Despite a net loss of $2.8 million for the quarter, NAT reported an adjusted EBITDA of $21.4 million and maintained a strong cash position above $70 million. The company has entered a preliminary agreement with a South Korean shipyard to construct two new Suezmax tankers, expected to be delivered in 2028. The announcement highlights the company’s strategic focus on fleet expansion and maintaining high standards for safety and environmental responsibility, which positions NAT favorably in the tanker market amid ongoing strong demand for oil transportation.

Nordic American Tankers Announces AGM Results and Strong Market Outlook

On November 21, 2025, Nordic American Tankers Limited held its Annual General Meeting of Shareholders, where all proposed resolutions were approved. The meeting saw the election of Herbjorn Hansson, Alexander Hansson, Jenny Chu, and Jim Kelly as Directors of the Board, and the appointment of KPMG as the company’s independent auditors. The company reported a strong market position and positive future prospects.

Nordic American Tankers Announces AGM Date for November 2025

Nordic American Tankers Limited announced on September 29, 2025, that its Annual General Meeting of Shareholders is scheduled for November 21, 2025. The record date for determining shareholders entitled to vote at the meeting was set for September 12, 2025. This announcement is significant for stakeholders as it outlines the timeline for shareholder engagement and decision-making processes, which are crucial for the company’s governance and future strategic directions.