Nabors Industries (NBR) AI Stock Analysis

• Market Cap: $489.20M
• Dividend Yield: N/A
• Average Volume (3M): 512.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -0.94%
• EPS Growth: -19.18%
• Country: US
• Employees: 12,400
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Drilling
• EPS (TTM): 2.18
• Shares Outstanding: 15,699,567
• 10 Day Avg. Volume: 603,559
• 30 Day Avg. Volume: 512,431
• PEG Ratio: -0.07
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.72
• Enterprise Value/Market Cap: 5.71
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 5.08
• Enterprise Value/Ebitda: 0.83
• 1Y Price Target: $36.33
• Price Target Upside: 16.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 51 Neutral
• Price Target: $31.00 ▼(-0.51%Downside)

Nabors Industries' overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and negative profitability. While technical analysis and valuation metrics also present challenges, the company's strategic initiatives and positive corporate events provide some optimism for future improvement.

Positive Factors

Acquisition Impact

The Parker acquisition adds Quail Tools, a premier tubular rental franchise, while also adding some US and international rigs.

Financial Performance

NBR expects the acquisition to add $190mn of run-rate EBITDA, while being free cash flow accretive in year 1.

Negative Factors

Earnings Outlook

4Q EBITDA misses by 2%, guides 1Q25 lower by 6%.

Market Skepticism

Investors remain skeptical about management's expectation to be FCF positive and reduce debt by $150mn.

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 both land and offshore drilling operations. The company rents out its extensive fleet of drilling rigs to oil and gas producers, charging for the use of equipment and the accompanying personnel services. Key revenue streams include contract drilling services, rig leasing, and the sale of drilling-related technologies and automation solutions. Nabors also benefits from partnerships and collaborations that expand its market reach and technological capabilities, thereby contributing to its earnings by enhancing service offerings and operational efficiencies.

Nabors Industries Financial Statement Overview

Summary

Nabors Industries faces challenges with weak profitability due to negative net income margins, high leverage with a debt-to-equity ratio of 7.84, and inconsistent cash flow performance. The high debt levels and negative net income are significant concerns, although there is some operational efficiency improvement in EBIT and EBITDA.

Income Statement

Nabors Industries has shown a consistent decline in net income, reflected in negative net profit margins over the years, which is a significant concern. The gross profit margin remains moderate at 18.7% for TTM, showing some stability in core operations. Revenue growth has been inconsistent, with minor fluctuations in total revenue. Both EBIT and EBITDA margins have been improving, but overall profitability remains weak due to high interest and other costs.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 7.84 in the TTM period, indicating potential financial risk. Stockholders' equity is low, contributing to a weak equity ratio of 6.8%. Negative return on equity highlights the company's struggle to generate profits from shareholders' investments. The high level of debt remains a significant concern for financial stability.

Cash Flow

Nabors Industries has a volatile cash flow profile. The operating cash flow to net income ratio indicates the company’s ability to convert income into cash, with a ratio of -4.84 in TTM due to negative net income. Free cash flow has turned negative, indicating challenges in maintaining liquidity after capital expenditures. Despite these issues, the company maintains some level of operational cash inflow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.93B	2.93B	3.01B	2.65B	2.02B	2.13B
Gross Profit	549.61M	554.31M	570.31M	322.69M	37.27M	-52.73M
EBITDA	855.09M	813.23M	959.70M	597.28M	481.52M	354.41M
Net Income	-116.05M	-176.08M	-11.78M	-350.26M	-569.27M	-805.64M
Balance Sheet
Total Assets	5.05B	4.50B	5.28B	4.73B	5.53B	5.50B
Cash, Cash Equivalents and Short-Term Investments	404.11M	397.30M	1.07B	452.31M	991.49M	481.75M
Total Debt	2.69B	2.51B	3.15B	2.54B	3.27B	2.98B
Total Liabilities	3.60B	3.30B	4.00B	3.51B	4.13B	3.80B
Stockholders Equity	342.66M	135.00M	326.61M	368.96M	590.66M	1.15B
Cash Flow
Free Cash Flow	-66.32M	13.51M	97.01M	127.64M	191.14M	154.24M
Operating Cash Flow	561.93M	581.43M	637.86M	501.09M	428.78M	349.76M
Investing Cash Flow	-523.75M	-555.46M	-570.42M	-368.71M	-117.22M	-165.46M
Financing Cash Flow	-28.90M	-662.05M	592.59M	-661.53M	488.42M	-148.00M

Nabors Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 31.16 is below the 20-day moving average (MA) of 31.35, above the 50-day MA of 29.33, and below the 200-day MA of 51.33, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 51.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NBR.

Nabors Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	€4.73B	18.07	11.45%	4.73%	10.17%	-4.71%
SDRL	71 Outperform	$1.80B	5.45	12.75%	―	-15.60%	32.51%
HP	69 Neutral	$1.63B	7.49	7.57%	6.09%	12.23%	-37.06%
BORR	65 Neutral	$504.94M	10.49	5.17%	3.79%	19.15%	15.37%
RIG	60 Neutral	$2.45B	―	-6.65%	―	24.47%	-55.45%
PTEN	59 Neutral	$2.44B	―	-24.93%	5.07%	5.82%	-481.39%
NBR	51 Neutral	$489.20M	―	-44.00%	―	-0.94%	-19.18%

Nabors Industries Corporate Events

Nabors Industries Holds Successful Shareholder Meeting

On June 3, 2025, Nabors Industries held its annual general meeting of shareholders, with 82.49% of outstanding shares represented. During the meeting, all directors were elected by a majority vote, PricewaterhouseCoopers LLP was approved as the independent auditor, executive compensation was endorsed, and an amendment to the 2016 Stock Plan was ratified, indicating strong shareholder support for the company’s governance and strategic decisions.

The most recent analyst rating on (NBR) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Nabors Industries stock, see the NBR Stock Forecast page.