Nabors Industries (NBR) AI Stock Analysis

• Market Cap: $652.45M
• Dividend Yield: N/A
• Average Volume (3M): 527.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 3.49%
• EPS Growth: 18.16%
• Country: US
• Employees: 12,400
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -2.71
• Shares Outstanding: 15,736,950
• 10 Day Avg. Volume: 498,830
• 30 Day Avg. Volume: 527,821
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.90
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 38.93
• Enterprise Value/Market Cap: 5.87
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 6.56
• Enterprise Value/Ebitda: 4.29
• 1Y Price Target: $36.40
• Price Target Upside: -12.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: $40.00 ▼(-3.87% Downside)

Nabors Industries' overall stock score is primarily impacted by its financial performance challenges, including high leverage and negative profitability. However, positive technical indicators and strategic corporate events, such as the sale of Quail Tools, provide some support. The earnings call and valuation factors also contribute to a cautious outlook.

Positive Factors

Debt Reduction

The sale of Quail Tools significantly reduces Nabors' debt, improving financial flexibility and strengthening the balance sheet, which is crucial for long-term financial health.

International Market Expansion

Expanding in international markets, especially the Middle East, positions Nabors for sustained growth by tapping into high-demand regions and diversifying revenue streams.

Technological Advancements

Strong performance in the Drilling Solutions segment highlights Nabors' competitive edge in technology, driving demand and supporting long-term profitability.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting Nabors' ability to invest in growth opportunities and manage economic downturns effectively.

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which could hinder Nabors' ability to generate sustainable earnings and impact long-term financial performance.

Operational Challenges in Key Markets

Challenges in key markets like Mexico and Saudi Arabia could affect Nabors' operational efficiency and market position, impacting revenue and growth prospects.

Nabors Industries Business Overview & Revenue Model

Company Description

Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells. The company operates through five segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies. It provides tubular running, wellbore placement, directional drilling, measurement-while-drilling (MWD), equipment manufacturing, and rig instrumentation services; and logging-while-drilling systems and services, as well as drilling optimization software. The company also offers REVit, an automated real time stick-slip mitigation system; ROCKit, a directional steering control system; SmartNAV, a collaborative guidance and advisory platform; SmartSLIDE, an advanced directional steering control system; and RigCLOUD, which provides the tools and infrastructure to integrate applications to deliver real-time insight into operations across the rig fleet. In addition, it manufactures and sells top drives, catwalks, wrenches, drawworks, and other drilling related equipment, such as robotic systems and downhole tools; and provides aftermarket sales and services for the installed base of its equipment. As of December 31, 2021, the company marketed approximately 301 rigs for land-based drilling operations in the United States, Canada, and in 20 other countries worldwide; and 29 rigs for offshore platform drilling operations in the United States and internationally. Nabors Industries Ltd. was founded in 1952 and is based in Hamilton, Bermuda.

How the Company Makes Money

Nabors Industries generates revenue primarily through its drilling services, which include the operation of drilling rigs and the provision of associated services such as rig management and maintenance. Key revenue streams include contracts for land and offshore drilling, performance-based services, and the sale of proprietary technologies and equipment. The company also benefits from long-term contracts with major oil and gas operators, which provide a steady income stream. Additionally, Nabors has strategic partnerships and collaborations that enhance its service offerings and expand its market reach, contributing to its overall earnings.

Nabors Industries Financial Statement Overview

Summary

Nabors Industries faces challenges in profitability and financial stability, with high leverage and negative net income. While there is some revenue growth and improvement in free cash flow, the company needs to address its debt levels and operational efficiency to enhance financial health.

Income Statement

Nabors Industries shows a modest revenue growth rate of 3.34% in the TTM, with a gross profit margin of 19.27%. However, the company struggles with profitability, reflected in a negative net profit margin of -3.54%. The EBIT and EBITDA margins are relatively low at 8.97% and 29.46%, respectively, indicating challenges in operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 4.17 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative at -32.82%, reflecting poor profitability relative to shareholder equity. The equity ratio is low, suggesting limited asset financing through equity.

Cash Flow

Nabors Industries shows a significant improvement in free cash flow growth at 122.74% in the TTM. However, the free cash flow to net income ratio is negative, indicating challenges in converting net income into free cash flow. The operating cash flow to net income ratio is 0.79, suggesting some operational cash generation capability despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.03B	2.93B	3.01B	2.65B	2.02B	2.13B
Gross Profit	584.03M	554.31M	570.31M	322.69M	37.27M	-52.73M
EBITDA	892.94M	813.23M	959.70M	597.28M	481.52M	354.41M
Net Income	-107.42M	-176.08M	-11.78M	-350.26M	-569.27M	-805.64M
Balance Sheet
Total Assets	5.04B	4.50B	5.28B	4.73B	5.53B	5.50B
Cash, Cash Equivalents and Short-Term Investments	387.36M	397.30M	1.07B	452.31M	991.49M	481.75M
Total Debt	2.67B	2.51B	3.15B	2.54B	3.27B	2.98B
Total Liabilities	3.59B	3.30B	4.00B	3.51B	4.13B	3.80B
Stockholders Equity	640.33M	135.00M	326.61M	368.96M	590.66M	1.15B
Cash Flow
Free Cash Flow	-147.71M	13.51M	97.01M	127.64M	191.14M	154.24M
Operating Cash Flow	532.08M	581.43M	637.86M	501.09M	428.78M	349.76M
Investing Cash Flow	-539.22M	-555.46M	-570.42M	-368.71M	-117.22M	-165.46M
Financing Cash Flow	-47.06M	-662.05M	592.59M	-661.53M	488.42M	-148.00M

Nabors Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.61
• 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 NBR, the sentiment is Positive. The current price of 41.61 is above the 20-day moving average (MA) of 40.16, above the 50-day MA of 36.63, and above the 200-day MA of 39.93, indicating a bullish trend. The MACD of 1.27 indicates Positive momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 73.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBR.

Nabors Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HP	69 Neutral	$2.22B	-66.72	-1.08%	4.53%	25.92%	-109.50%
BORR	67 Neutral	$729.46M	12.35	5.35%	8.92%	7.73%	-25.36%
SDRL	66 Neutral	$1.89B	25.89	15.28%	―	-13.36%	-82.21%
RIG	58 Neutral	$3.42B	-1.69	-16.08%	―	23.26%	-284.22%
NBR	56 Neutral	$652.45M	―	-49.08%	―	3.49%	18.16%
PTEN	54 Neutral	$2.05B	-1.88	-32.21%	6.18%	-7.98%	-1011.04%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Nabors Industries Corporate Events

Nabors Industries Amends Credit Agreement for Equity Repurchase

On September 4, 2025, Nabors Industries, Inc., a subsidiary of Nabors Industries Ltd., amended its credit agreement to allow for repurchase of up to $100 million in equity annually. This amendment impacts Nabors Delaware’s financial operations by adjusting its ability to make dividends and equity buybacks on a dollar-for-dollar basis.

Nabors Industries Amends Receivables Purchase Agreements

On August 29, 2025, Nabors Industries, Inc. and its subsidiaries, along with Wells Fargo Bank and other parties, executed amendments to their existing Receivables Purchase and Sale Agreements, originally dated September 13, 2019. These amendments, including the addition of Parker Drilling Company subsidiaries as originators, aim to enhance the company’s financial agreements without increasing the facility limit of $250 million, while also updating indemnification obligations.

Nabors Industries Sells Quail Tools for $600 Million

On August 20, 2025, Nabors Industries announced the sale of its subsidiary Quail Tools to Superior Energy Services for $600 million, comprising $375 million in cash and a $250 million seller note. This transaction is expected to reduce Nabors’ net debt by more than 25%, strengthen its balance sheet, and enhance financial flexibility, while retaining other profitable operations acquired from Parker Wellbore.

Nabors Industries Appoints David Tudor to Board

On July 24, 2025, Nabors Industries appointed David J. Tudor to its Board of Directors, expanding the board to eight members. Tudor, with extensive experience in the energy sector, will serve on the Audit and Risk Oversight Committees. His appointment is seen as a strategic move to enhance Nabors’ direction and reflects the company’s commitment to incorporating independent directors with strong industry backgrounds. Tudor’s leadership roles in various energy organizations and his insights are expected to benefit Nabors and its stakeholders.