One-glance verdict
Undervalued
$16.67 our estimate vs market $7.91
Wall Street consensus: $8.50 (-49.0% lower than our fair-value estimate)
53% below our estimate, below the bear case
Fundamentals snapshot
Nordic American Tankers Limited
NAT · NYQ · Energy · Oil & Gas Midstream
Current price
$7.91
52-week range
$3.33 - $8.88
Market cap
$1.67B
Balance sheet
Stretched
1.35x Concerning
Net debt $273.27M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Free cash flow was positive in 2/10 years.
- Reward Dividend yield is 13.7% with 30-year payout history.
- Risk Net debt grew 53.2% over 3 years.
- Risk Insider ownership is only 5.7% (peer median: 17.2%).
What this company does
Nordic American Tankers Limited
Nordic American Tankers Limited (NAT) is a company that owns and operates large ships called tankers to move crude oil around the world. Their main source of money comes from charging oil companies and traders to ship their oil using these vessels. This matters because it shows how much business they're doing and how well they can make money by providing this essential service of transporting oil.
How the company got here
Nordic American Tankers (NAT) was founded in 1995 and is based in Bermuda. Initially, the company focused on acquiring and operating three new Suezmax double-hull crude oil tankers. These vessels were chartered to British Petroleum (BP) for seven years. As these charters neared their end, shareholders voted to continue the company's operations, transforming NAT into an active operating company in 2004. Since then, NAT has expanded its fleet, primarily focusing on Suezmax tankers, and has been publicly traded on the New York Stock Exchange (NYSE) since its inception. The company has a history of paying quarterly dividends to shareholders, a practice it has maintained since 1997.
What it actually does
Nordic American Tankers (NAT) is a shipping company that owns, operates, and charters large oil tankers. Specifically, NAT focuses exclusively on Suezmax tankers, which are vessels capable of carrying up to 1 million barrels of crude oil. These ships are essential for transporting crude oil globally from producers to refineries or storage facilities. NAT's business model relies on the demand for oil transportation, operating its fleet primarily in the spot market, meaning they are hired out on a voyage-by-voyage basis.
Suezmax Tankers
The core of Nordic American Tankers' business is its fleet of Suezmax tankers. These are very large crude carriers, designed to transport significant volumes of oil. The company exclusively operates this type of vessel, which allows for a standardized and efficient operation. NAT's Suezmax tankers are chartered out to major oil companies, oil traders, and other entities that require the transportation of crude oil. The company's strategy emphasizes a homogenous fleet, meaning all its vessels are of the same type and size, simplifying operations and maintenance.
What management is betting on now
Nordic American Tankers' current strategy centers on maintaining a high-quality fleet of Suezmax tankers and prioritizing safety for its crew, ships, and the environment. Management aims to grow the company by evaluating market opportunities and employment options to enhance shareholder value and the company's ability to pay dividends. They are also focused on strengthening customer relationships with major oil companies and are investing in new vessels, with plans to build two new Suezmax tankers for delivery in 2028. A key aspect of their strategy is the consistent payment of quarterly dividends, a practice they have maintained for many years.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$291.69M
Net income
$12.27M
Diluted EPS
0.06
Operating cash flow
$19.82M
Free cash flow
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Sources
Revenue
$349.74M
Net income
$46.64M
Diluted EPS
0.22
Operating cash flow
$128.16M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $16.67 vs current price $7.91
Wall Street consensus is the average analyst price target: $8.50 (-49.0% lower than our fair-value estimate).
Our most-likely fair value is $16.67 a share — about 110.7% above today's price of $7.91, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $273.3M. Interest coverage 1.4x.
Net debt
$273.27M
Interest coverage
1.35x
Nordic American Tankers Limited's profit covers its interest bill about 1.4 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
NAT
BASELINE
Nordic American Tankers Limited
Total debt $406.57M Interest coverage 1.35x This is the baseline the peer rows are being compared against.
Total debt $2.43B Interest coverage 2.57x +90% vs NAT Carries about 1.9x more debt cushion than NAT.
Total debt $652.77M Interest coverage 7.17x +431% vs NAT Carries about 5.3x more debt cushion than NAT.
Total debt $441.86M Interest coverage 12.14x +798% vs NAT Carries about 9.0x more debt cushion than NAT.
Total debt $37.50M Interest coverage 74.24x +5,392% vs NAT Carries about 54.9x more debt cushion than NAT.
What you should know
The case for and against NAT
2 Rewards
2 Risks
Rewards
-
Free cash flow was positive in 2/10 years.
-
Dividend yield is 13.7% with 30-year payout history.
Risks
-
Net debt grew 53.2% over 3 years.
-
Insider ownership is only 5.7% (peer median: 17.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.41x
Forward P/E
8.99x
P/B
3.51x
P/S
4.51x
EV/EBITDA
11.89x
PEG ratio
1.21x
Profitability
How much profit each dollar creates
Gross margin
53.2%
Operating margin
51.9%
Net margin
33.3%
ROE
25.7%
ROA
7.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.85x
Current ratio
3.27x
Quick ratio
2.27x
Total debt
$406.57M
Total cash
$133.29M
Growth
How the business has been compounding
Revenue TTM
$1.37B
Revenue 5Y CAGR
11.2%
EPS TTM
0.59
EPS 5Y CAGR
-5.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$311.56M
Free CF TTM
$-114.63M
FCF margin
-8.4%
Dividend
Shareholder payout
Yield
13.7%
Payout ratio
105.1%
Last ex-div date
2026-09-10