Nabors Industries Ltd (NBR, Financial), a prominent player in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. The company's market cap stands at $1.3 billion, with its stock price currently at $136.19. Over the past week, the stock has gained 11.26%, and over the past three months, it has seen a substantial gain of 36.75%. According to the GF Value, a measure defined by GuruFocus.com that calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is currently fairly valued at $124.78. However, three months ago, the stock was modestly undervalued with a GF Value of $117.23.
Company Overview
Nabors Industries Ltd operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and international markets. The company's operations span over 15 countries, with 300 actively marketed rigs for land-based drilling operations and 29 actively marketed rigs for offshore platform drilling operations. Nabors Industries Ltd has five reportable segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies. The company's key revenue is generated from International Drilling.
Profitability Analysis
With a Profitability Rank of 3/10, Nabors Industries Ltd is less profitable than many of its peers. The company's Operating Margin stands at 7.81%, which is better than 48.05% of 974 companies in the same industry. However, the company's ROE is -7.02%, and its ROA is -0.62%, both of which are lower than industry averages. The company's ROIC is 0.87%, which is better than 37.42% of 1077 companies in the same industry. Over the past 10 years, the company has only been profitable for one year.
Growth Prospects
Nabors Industries Ltd has a Growth Rank of 3/10, indicating that its revenue and profitability growth is lower than many of its peers. The company's 3-year and 5-year revenue growth rates per share are -11.70% and -11.10% respectively. However, the company's future 3-year to 5-year total revenue growth rate estimate is 8.44%, which is better than 67.94% of 262 companies in the same industry. The company's 3-year and 5-year EPS without NRI growth rates are 27.30% and 12.00% respectively.
Major Stock Holders
The top three holders of Nabors Industries Ltd's stock are Jim Simons (Trades, Portfolio), who holds 152,125 shares (1.59%), Steven Cohen (Trades, Portfolio), who holds 21,100 shares (0.22%), and Paul Tudor Jones (Trades, Portfolio), who holds 19,572 shares (0.21%).
Competitive Landscape
Nabors Industries Ltd faces competition from several companies in the Oil & Gas industry. Its main competitors include Diamond Offshore Drilling Inc (DO, Financial) with a market cap of $1.65 billion, Vantage Drilling International (VTDRF, Financial) with a market cap of $347.269 million, and Independence Contract Drilling Inc (ICD, Financial) with a market cap of $44.014 million.
Conclusion
In conclusion, Nabors Industries Ltd has seen a significant surge in its stock price over the past three months. The company's profitability and growth ranks are lower than many of its peers, but its future 3-year to 5-year total revenue growth rate estimate is promising. The company faces competition from several companies in the Oil & Gas industry, but it continues to hold a strong position in the market. The company's stock is currently fairly valued according to the GF Value, indicating that it may be a good investment opportunity for value investors.
