Nordic American Tanker (NAT) AI Stock Analysis

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Nordic American Tanker

(NYSE:NAT)

64Neutral

Nordic American Tanker shows resilience in cash generation and improved cost management, though it faces challenges with declining net income margins and ROE. The stock's technical indicators suggest mixed market sentiment, with mild bearish trends in the short term. However, the stock's valuation is attractive with a reasonable P/E ratio and a very high dividend yield, making it appealing for income-focused investors.

Nordic American Tanker (NAT) vs. S&P 500 (SPY)

Market Cap

$550.55M

Dividend Yield13.08%

Average Volume (3M)2.81M

Price to Earnings (P/E)11.7

Beta (1Y)0.29

Revenue Growth-2.37%

EPS Growth-52.77%

CountryUS

Employees15

SectorIndustrials

Sector Strength78

IndustryMarine Shipping

Share Statistics

EPS (TTM)0.01

Shares Outstanding211,750,660

10 Day Avg. Volume2,516,963

30 Day Avg. Volume2,809,442

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.37

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit4.63

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$2.50

Price Target Upside-6.02% Downside

Rating ConsensusHold

Number of Analyst Covering1

Nordic American Tanker Business Overview & Revenue Model

Company DescriptionNordic 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 MoneyNordic American Tanker makes money by chartering its fleet of Suezmax oil tankers to customers, primarily oil companies and refineries, who need to transport crude oil across international waters. The company earns revenue through time charters, spot charters, and pool arrangements. Time charters involve leasing a vessel for a fixed period at a predetermined rate, providing stable and predictable income. Spot charters are short-term contracts based on current market rates, allowing NAT to capitalize on favorable market conditions. Additionally, NAT participates in tanker pools, which are collaborations of similar vessels managed by a third party to optimize fleet utilization and revenue. These diverse revenue streams, along with strategic partnerships and market positioning, contribute significantly to NAT's earnings.

Nordic American Tanker Financial Statement Overview

Summary

Nordic American Tanker demonstrates strong cash flow performance despite revenue volatility and declining net income margins. Improved cost management is evident from higher gross and EBITDA margins. The company maintains a stable equity position with reduced leverage, though declining ROE highlights profitability challenges. Overall, the financial health suggests resilience in cash generation, albeit with some pressure on profitability and growth.

Income Statement

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Nordic American Tanker has shown a volatile revenue trend with a significant drop in 2024 compared to the previous year. The Gross Profit Margin improved to 72.1% in 2024 from 38.5% in 2023, indicating better cost management. However, the Net Profit Margin declined to 20.7% in 2024 from 25.2% in 2023, reflecting reduced profitability. The EBIT Margin is 34.3%, down from 32.7% in 2023, while the EBITDA Margin improved to 59.3%, showing strong operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio decreased to 0.53 in 2024 from 0.56 in 2023, indicating improved leverage. Return on Equity (ROE) was 9.2% in 2024, down from 18.3% in 2023, reflecting decreased profitability. The Equity Ratio remains stable at 62.2%, suggesting a solid equity base.

Cash Flow

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Nordic American Tanker showed a remarkable Free Cash Flow growth of 85.5% in 2024, highlighting strong cash generation. The Operating Cash Flow to Net Income Ratio was 2.67, indicating efficient cash conversion. The Free Cash Flow to Net Income Ratio was 2.61, underscoring robust cash flow relative to net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
225.10M	391.69M	339.34M	195.76M	354.62M
	Gross Profit
162.29M	150.78M	54.97M	-68.53M	98.81M
	EBIT
77.31M	127.89M	41.87M	-92.56M	13.68M
	EBITDA
133.46M	179.29M	92.60M	-24.69M	149.25M
	Net Income Common Stockholders
46.64M	98.71M	15.10M	-119.48M	50.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.18M	31.08M	59.58M	34.74M	57.85M
	Total Assets
817.59M	879.20M	880.74M	903.06M	974.35M
	Total Debt
269.70M	301.60M	306.04M	320.96M	356.71M
	Net Debt
230.53M	270.52M	246.45M	286.22M	298.86M
	Total Liabilities
308.77M	340.89M	340.75M	352.93M	375.22M
	Stockholders Equity
508.81M	538.30M	539.98M	550.13M	599.13M
Cash Flow		Free Cash Flow
121.99M	65.78M	-71.28M	-62.19M	92.87M
	Operating Cash Flow
124.61M	139.44M	24.13M	-44.46M	110.94M
	Investing Cash Flow
-2.62M	-73.67M	-14.34M	-3.46M	-17.48M
	Financing Cash Flow
-111.50M	-95.67M	9.01M	30.51M	-93.08M

Nordic American Tanker Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.66

Price Trends

50DMA

2.49

Positive

100DMA

2.54

Positive

200DMA

2.90

Negative

Market Momentum

MACD

0.04

Negative

RSI

62.31

Neutral

STOCH

80.75

Negative

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 2.66 is above the 20-day moving average (MA) of 2.48, above the 50-day MA of 2.49, and below the 200-day MA of 2.90, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.31 is Neutral, neither overbought nor oversold. The STOCH value of 80.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NAT.

Nordic American Tanker Risk Analysis

Nordic American Tanker disclosed 53 risk factors in its most recent earnings report. Nordic American Tanker reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Nordic American Tanker Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSL	80 Outperform	$784.77M	2.27	26.71%	7.86%	5.37%	16.97%
ASC	78 Outperform	$396.87M	3.21	21.87%	9.68%	46.10%	―
GNK	71 Outperform	$583.39M	7.76	8.30%	10.75%	10.21%	―
SB	66 Neutral	$363.18M	4.15	11.99%	5.80%	8.17%	35.92%
NAT	64 Neutral	$550.55M	11.70	8.91%	13.08%	-2.37%	-52.77%
Sector *	64 Neutral	$4.27B	11.80	5.31%	249.79%	4.07%	-9.02%

* Industrials Sector Average

Performance Comparison

NAT

Nordic American Tanker

2.66

-0.95

-26.32%

GNK

Genco Shipping

13.58

-6.54

-32.50%

GSL

Global Ship Lease

22.06

0.30

1.38%

Safe Bulkers

3.50

-1.46

-29.44%

ASC

Ardmore Shipping

9.96

-6.69

-40.18%

NO:OET

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Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.