Why Nabors Industries Ltd's Stock Skyrocketed 19% in a Quarter: A Deep Dive
Nabors Industries Ltd (NYSE:NBR), a leading player in the Oil & Gas industry, has seen a significant shift in its stock performance recently. Over the past week, the company's stock price has decreased by 13.07%, but it has seen an impressive increase of 18.59% over the past three months. The current GF Value of the stock stands at $125.53, suggesting that the stock is modestly undervalued. This is consistent with the past GF Value of $117.85, which also indicated that the stock was modestly undervalued.
Company Overview: Nabors Industries Ltd
Nabors Industries Ltd operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the U.S. and international markets. The company has operations in over 15 countries and its five reportable segments include U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies. The key revenue of the company is generated from International Drilling. With a market cap of $1.06 billion, Nabors Industries Ltd is a significant player in the Oil & Gas industry.
Profitability Analysis
When it comes to profitability, Nabors Industries Ltd has a Profitability Rank of 3/10, indicating that the company is not very profitable. The company's Operating Margin of 7.81% is better than 48.17% of companies in the same industry. However, the company's negative ROE and ROA suggest that the company is not generating a good return on its equity or assets. The company's ROIC of 0.87% is better than 37.95% of companies in the same industry.
Growth Prospects
Nabors Industries Ltd has a Growth Rank of 3/10, indicating that the company's growth is not very strong. The company's negative 3-year and 5-year Revenue Growth Rate per Share suggest that the company's revenue has been decreasing. However, the company's future total revenue growth rate of 8.44% is better than 67.95% of companies in the same industry. The company's 3-year and 5-year EPS without NRI growth rates are better than over half of the companies in the same industry.
Major Stock Holders
The top three holders of Nabors Industries Ltd's stock are Jim Simons (Trades, Portfolio), Steven Cohen (Trades, Portfolio), and Paul Tudor Jones (Trades, Portfolio). Jim Simons (Trades, Portfolio) holds 152,125 shares, accounting for 1.59% of the company's stock. Steven Cohen (Trades, Portfolio) holds 21,100 shares, accounting for 0.22% of the company's stock. Paul Tudor Jones (Trades, Portfolio) holds 19,572 shares, accounting for 0.21% of the company's stock.
Competitive Landscape
Nabors Industries Ltd faces competition from several companies in the Oil & Gas industry. Diamond Offshore Drilling Inc (NYSE:DO) with a market cap of $1.44 billion, Vantage Drilling International (VTDRF) with a market cap of $318.826 million, and Independence Contract Drilling Inc (NYSE:ICD) with a market cap of $40.987 million are some of the main competitors of Nabors Industries Ltd.
Conclusion
In conclusion, Nabors Industries Ltd has seen a significant increase in its stock price over the past three months, despite a decrease over the past week. The company's GF Value suggests that the stock is modestly undervalued. However, the company's profitability and growth are not very strong. The company faces competition from several companies in the Oil & Gas industry. Despite these challenges, the company's future total revenue growth rate is promising, and it has the backing of major stockholders like Jim Simons (Trades, Portfolio), Steven Cohen (Trades, Portfolio), and Paul Tudor Jones (Trades, Portfolio).
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
