Why Nabors Industries Ltd's Stock Skyrocketed 14% in a Quarter
Nabors Industries Ltd (NYSE:NBR), a prominent player in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. As of October 17, 2023, the company's stock price stands at $127.32, marking a 13.88% increase over the past quarter. This rise is even more impressive considering the stock's 9.74% gain over the past week alone. With a market cap of $1.22 billion, Nabors Industries Ltd is currently fairly valued according to its GF Value of $125.1. This is a notable improvement from three months ago when the stock was modestly undervalued with a GF Value of $117.85.
Unpacking Nabors Industries Ltd
Nabors Industries Ltd is a leading company in the Oil & Gas industry. The company owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and international markets. Nabors Industries Ltd also offers performance tools, directional drilling services, tubular running services, and innovative technologies. With operations in over 15 countries, the company has five reportable segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies. The majority of the company's revenue is generated from International Drilling.
Profitability Analysis
Despite its recent stock price surge, Nabors Industries Ltd's profitability rank stands at 3/10, indicating that it is less profitable than many of its peers. The company's operating margin of 7.81% is better than 48.17% of 984 companies in the same industry. However, its ROE of -7.02% and ROA of -0.62% are less impressive, better than only 25.07% and 36.01% of companies respectively. The company's ROIC of 0.87% is better than 37.85% of companies. Over the past 10 years, the company has only had one year of profitability, better than 10.58% of 955 companies.
Growth Prospects
Nabors Industries Ltd's growth rank is 2/10, indicating that it has experienced less growth 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, better than 15.13% and 15.57% of companies. However, the company's future 3-year to 5-year total revenue growth rate estimate is 7.75%, better than 67.95% of companies. The company's 3-year and 5-year EPS without NRI growth rates are 27.30% and 12.00% respectively, better than 55.41% and 53.33% of companies.
Top Holders
The top three holders of Nabors Industries Ltd's stock are Jim Simons (Trades, Portfolio) with 152,125 shares (1.59%), Steven Cohen (Trades, Portfolio) with 21,100 shares (0.22%), and Paul Tudor Jones (Trades, Portfolio) with 19,572 shares (0.21%).
Competitive Landscape
Nabors Industries Ltd faces stiff competition in the Oil & Gas industry. Its main competitors include Diamond Offshore Drilling Inc (NYSE:DO) with a market cap of $1.41 billion, Vantage Drilling International (VTDRF) with a market cap of $319.156 million, and Independence Contract Drilling Inc (NYSE:ICD) with a market cap of $42.115 million.
Conclusion
In conclusion, Nabors Industries Ltd's stock has seen a significant surge over the past three months, with a 13.88% increase. Despite its low profitability and growth ranks, the company's future 3-year to 5-year total revenue growth rate estimate is promising. However, with stiff competition in the Oil & Gas industry, it remains to be seen whether the company can maintain its current momentum and improve its profitability and growth in the future.
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.
