Nordic American Tankers Limited (NAT)
Valuation Overview•Is Nordic American Tankers Limited Overvalued or Undervalued?
Market price has outpaced base-case intrinsic cash flows, pricing in significant future growth optimism.
Moderate quality score of 56/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
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Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
NAT demonstrates strong business quality with robust profitability and healthy margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-4.8% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 28.7% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $104.7M | -16.4% | -4.8% | -3.8% | -4.1% | |
| EBITDA | $54.0M | — | +0.1% | — | — | |
| Net Income | $68.3M | -73.7% | -6.7% | — | -20.0% | |
| EPS (Diluted) | $0.32 | -73.6% | -8.1% | -29.8% | -26.7% | |
| Free Cash Flow | $68.8M | -192.9% | -17.8% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 38.0% | 29.5% | 14.0% | 11.2% |
| Operating Margin | 28.7% | 21.6% | 6.5% | 5.3% |
| Net Margin | 33.2% | 14.2% | -2.8% | -10.6% |
| FCF Margin | 31.5% | 4.3% | -8.0% | -1.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $0.30 | $0.32 | +5.5% | ||
| Q2'26 | $0.16 | $0.17 | +6.3% | ||
| Q1'26 | $0.14 | $0.06 | -58.1% | ||
| Q4'25 | $0.10 | $-0.01 | -110.0% | ||
| Q3'25 | $0.03 | $-0.00 | -113.4% | ||
| Q2'25 | $-0.01 | $0.02 | +300.0% | ||
| Q1'25 | $0.03 | $0.01 | -66.7% | ||
| Q4'24 | $0.05 | $0.04 | -20.0% |
Total return is +151.0% (1Y), outperforming the benchmark by +135.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +145.7% | +133.3% | — |
| 1Y | +151.0% | +135.3% | +23.6% |
| 3YCAGR | +31.7% | +11.2% | +37.2% |
| 5YCAGR | +34.0% | +22.1% | +91.1% |
| 10YCAGR | +0.2% | -13.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Nordic American Tankers Limited (NAT) valuation, health, and returns.
Nordic American Tankers Limited is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. overvalued (implying -53.3% downside from DCF intrinsic value of $3.85)
Nordic American Tankers Limited has multiple valuation anchors: DCF Intrinsic Value: $3.85 | Peer Relative Fair Value: $8.30 | Wall Street Analyst Target: $3.50 (implying -54.1% upside). A convergence of these signals offers higher conviction.
Nordic American Tankers Limited displays fair financial health with a composite quality score of 56/100, supported by a Altman Z-Score of 2.2 (grey zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 2.8%.
Nordic American Tankers Limited pays a 5.2% dividend yield, covered by a 690% payout ratio with 1 years of growth, supplemented by a 0.0% buyback yield.
Nordic American Tankers Limited's current growth trajectory is Decelerating. The company achieved -16.4% 1Y revenue growth and -73.6% 1Y EPS growth, compared to its 3Y revenue CAGR of -4.8%.
Wall Street consensus is Hold based on 19 analysts, beating EPS expectations in 25% of recent quarters with a 2-quarter streak. The consensus price target represents a -54.1% change from current levels.
Investment risks for Nordic American Tankers Limited include: -18.4% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.21x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.