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NATNordic American Tankers Limited
$7.62$1.6B
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  4. Financial Ratios

Nordic American Tankers Limited (NAT) Financial Ratios

Latest Ratios: P/E Ratio 131.4x · EV/EBITDA 23.0x · ROE 2.6%. (1997–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

NAT Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.6B$728M$525M$877M$618M$275M$440M$701M$284M$255M$777M
Enterprise Value$2.0B$1.1B$755M$1.1B$865M$561M$739M$1.1B$671M$586M$1.1B
P/E Ratio →131.3859.3111.368.9440.91—8.68————
P/S Ratio5.522.491.502.241.821.401.242.210.980.862.17
P/B Ratio3.621.631.031.631.140.550.741.180.470.300.89
P/FCF——4.1813.33——4.7413.94———
P/OCF81.3436.724.096.2925.62—3.9713.27—8.056.08

P/E links to full P/E history page with 30-year chart

NAT EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—3.782.162.932.552.872.083.322.321.973.18
EV / EBITDA22.9712.765.666.409.99—4.9610.9721.7410.768.19
EV / EBIT68.7023.059.768.8720.50—9.0832.61——21.25
EV / FCF——6.0217.45——7.9620.91———

NAT Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin19.8%19.8%30.3%38.5%16.2%-35.0%27.9%14.3%-5.9%-11.3%16.9%
Operating Margin9.9%9.9%22.1%32.7%10.7%-43.0%22.9%10.1%-10.3%-15.6%13.4%
Net Profit Margin4.2%4.2%13.3%25.2%4.5%-61.0%14.1%-3.3%-33.0%-69.0%-1.2%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE2.6%2.6%8.9%18.3%2.9%-21.8%8.4%-1.7%-13.2%-24.0%-0.5%
ROA1.4%1.4%5.5%11.2%1.7%-13.1%5.0%-1.0%-8.1%-15.6%-0.3%
ROIC2.8%2.8%7.5%12.0%3.5%-7.5%6.6%2.5%-2.1%-2.9%3.0%
ROCE3.6%3.6%9.9%15.8%4.5%-9.8%8.5%3.2%-2.6%-3.6%3.8%

NAT Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.950.950.530.560.570.640.600.670.730.460.51
Debt / EBITDA4.894.892.021.683.53—2.394.1714.147.143.19
Net Debt / Equity—0.850.450.500.460.570.500.590.640.390.41
Net Debt / EBITDA4.364.361.731.512.85—2.003.6612.546.072.60
Debt / FCF——1.844.11——3.226.97———
Interest Coverage1.341.342.524.241.56-3.532.590.76-0.78-8.314.75

NAT Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.242.241.651.551.971.582.512.193.115.017.61
Quick Ratio1.681.681.180.941.291.272.021.812.554.106.64
Cash Ratio0.680.680.660.440.820.511.460.841.362.303.82
Asset Turnover—0.320.430.450.390.230.360.310.270.230.26
Inventory Turnover6.266.268.555.695.7512.6613.1812.0915.0914.3314.23
Days Sales Outstanding—23.7616.9324.5022.0217.486.5328.2928.5327.6118.45

NAT Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield5.2%11.6%16.7%10.2%3.7%3.5%15.3%2.0%3.5%21.2%16.2%
Payout Ratio690.3%690.3%188.0%91.0%150.2%—134.4%————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield0.8%1.7%8.8%11.2%2.4%—11.5%————
FCF Yield——23.9%7.5%——21.1%7.2%———
Buyback Yield0.0%0.0%0.7%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield5.2%11.6%17.4%10.2%3.7%3.5%15.3%2.0%3.5%21.2%16.2%
Shares Outstanding—$212M$210M$209M$202M$163M$149M$143M$142M$104M$93M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetAdequate
Cash FlowDeteriorating
Top Statement Risk

Dividend Exceeds Sustainable Cash Flow

Elevated Valuation Refracted Through Volatile Cycle

NAT's TTM P/E of 128.62 suggests the market is pricing in a sharp earnings recovery, but the forward P/E of 8.29 and P/B of 3.55 indicate this valuation is highly sensitive to spot rate assumptions and asset value preservation.

The extreme disparity between trailing and forward multiples highlights the cyclical distortion; the high TTM P/E likely reflects depressed earnings from the prior trough in 2025, not current operational strength. Compared to peers like Teekay Tankers (P/E 9.98) and DHT Holdings (P/E 16.79), NAT trades at a premium that appears difficult to justify without sustained, above-cycle Suezmax rates. Investors should note the P/B of 3.55 is the highest among its direct peers, suggesting the market is assigning significant value to future earnings potential or dividend yield rather than current asset-based valuation.

Margin Expansion Driven by Rate Recovery

While gross margin has rebounded sharply to 48.5% in Q2 2026 from a trough of 10.2% in Q2 2025, the 10-quarter average net margin of just 4.20% underscores the inherent fragility of profitability in NAT's spot-driven, fixed-cost model.

The recent surge in operating margin to 39.3% demonstrates strong operating leverage, where incremental revenue from higher Time Charter Equivalent (TCE) rates flows rapidly to the bottom line after covering fixed vessel operating expenses. However, the structural thinness of the net margin, even in strong quarters, leaves virtually no buffer for adverse market moves or unexpected costs like dry-docking. This margin profile confirms that NAT's earning power is almost entirely dictated by the volatile Suezmax spot market, making any estimate of 'normalized' profitability highly speculative.

ROIC Recovery Masked by Eroding Equity Base

The ROIC has improved to 4.0% in Q2 2026 from near-zero levels in early 2025, yet this return remains significantly below the cost of capital for a capital-intensive business and is partly inflated by a shrinking equity denominator.

The ROIC trend is more informative than the ROE, which swung to 14.6% in Q2 2026 but is heavily distorted by the declining book value of equity due to accumulated losses and dividend payouts. An ROIC of 4.0% in a capital-heavy industry like tanker shipping suggests the company is not generating returns sufficient to cover its reinvestment needs over a full cycle. The driver of the recent improvement appears to be a sharp increase in operating margins rather than enhanced asset efficiency, as indicated by the persistently low asset turnover of around 0.12.

Ample Liquidity, Yet Operational Volatility Persists

The current ratio has improved to a healthy 3.27 in Q2 2026 from a concerning 0.73 in Q3 2024, providing a substantial liquidity buffer, but this position is supported by volatile cash flows from operations that may not be sustainable.

The surge in liquidity, reflected in both the current and quick ratios, appears driven by a combination of increased cash holdings and higher working capital as charter rates improve. However, the prior analysis of cash flow indicates that operational cash generation is erratic, and the improved position may be temporary if rates soften. Under severe stress scenario of spot rates collapsing below operating cost, the company's liquidity would be tested, though the current 3.27x current ratio offers a meaningful cushion relative to its recent historical lows.

P/E Ratio: A Cyclical Trap for Yield Investors

The single most misapplied metric to NAT is its P/E ratio, which is currently 128.62, because earnings in this volatile cyclical business are not predictive of future cash flows and can fluctuate from large positive to negative within a single year.

Investors, particularly those attracted to the 5.4% dividend yield, may incorrectly assume the P/E ratio reflects sustainable earnings power. For a spot-market tanker operator, current earnings are a snapshot of a specific point in the shipping cycle and are highly unlikely to be repeated. A more appropriate metric for evaluation is the Net Asset Value (NAV) of the fleet, which estimates the market value of the ships minus liabilities, as it provides a more stable, asset-based anchor for valuation that is less distorted by temporary rate spikes or troughs. The P/E ratio obscures the fundamental risk that the 'E' could evaporate in the next quarter.

Download Financial Ratios Data

Includes 30+ ratios · 29 years · Updated daily

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NAT — Frequently Asked Questions

Quick answers to the most common questions about buying NAT stock.

What is Nordic American Tankers Limited's P/E ratio?

Nordic American Tankers Limited's current P/E ratio is 131.4x. The historical average is 18.4x. This places it at the 100th percentile of its historical range.

What is Nordic American Tankers Limited's EV/EBITDA?

Nordic American Tankers Limited's current EV/EBITDA is 23.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.3x.

What is Nordic American Tankers Limited's ROE?

Nordic American Tankers Limited's return on equity (ROE) is 2.6%. The historical average is 4.3%.

Is NAT stock overvalued?

Based on historical data, Nordic American Tankers Limited is trading at a P/E of 131.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Nordic American Tankers Limited's dividend yield?

Nordic American Tankers Limited's current dividend yield is 5.25% with a payout ratio of 690.3%.

What are Nordic American Tankers Limited's profit margins?

Nordic American Tankers Limited has 19.8% gross margin and 9.9% operating margin.

How much debt does Nordic American Tankers Limited have?

Nordic American Tankers Limited's Debt/EBITDA ratio is 4.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.