Nordic American Partners Limited engages in acquiring and chartering double-hull tankers. The company was founded in 1995 and is based in Hamilton, Bermuda.
NAT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for NORDIC AMERICAN TANKERS Ltd. To summarize, we found that NORDIC AMERICAN TANKERS Ltd ranked in the 31th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for NORDIC AMERICAN TANKERS Ltd ended up being:
The company's compound free cash flow growth rate over the past 4.07 years comes in at 0%; that's greater than only 24.27% of US stocks we're applying DCF forecasting to.
NORDIC AMERICAN TANKERS Ltd's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 24.24% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 11. This value is greater than 78.97% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NAT, try CAT, GD, UNP, CTAS, and NDSN.
Tanker rates for Very Large Crude Carriers (VLCCs) are highly sensitive to oil transportation volumes, which in turn, are a function of global oil production and consumption. And so it follows that the lower the demand for oil, the lower the demand for tankers. However, a special case developed in...
Robert Boslego on Seeking Alpha | September 9, 2020
Nordic American Tankers (NAT) is the most popular tanker stock, commanding superior stock valuations because of its long dividend history. But its capacity to declare generous dividends has been curtailed by debt covenants from its February 2019 Credit Facility with Beal Bank. This may be a blessing in disguise, because...
Lambros Papaeconomou on Seeking Alpha | September 1, 2020
Tanker stocks have a "tree falls in empty woods and no one hears it" problem. They have a compelling longer-term pitch — almost no newbuild contracts, a giant plus for rates — but buyers are looking elsewhere.A new FreightWaves analysis reveals the extent of the slide in trading value and volumes for tanker and dry bulk shares.Tanker stock daily trading values The number of shares traded per day is one indicator of investor interest. To account for widely divergent share prices, the data can be analyzed in terms of dollar value.FreightWaves used data from Yahoo Finance and NASDAQ on the number of shares traded per day, multiplied by the average of the daily high and low price to estimate daily trading value.Data was compiled over a one-year period (July 22, 2019-July 21, 2020)...