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 26th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 56%. In terms of the factors that were most noteworthy in this DCF analysis for NAT, they are:
Interest coverage, a measure of earnings relative to interest payments, is 0.73; that's higher than merely 24.68% of US stocks in the Industrials sector that have positive free cash flow.
NORDIC AMERICAN TANKERS Ltd's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 78.98% of tickers in our DCF set.
NORDIC AMERICAN TANKERS Ltd's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 23.06% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of NORDIC AMERICAN TANKERS Ltd? See CCRN, FSS, GD, KEX, and NLSN.
In view of the solid position of the company and the prospects as explained in our first quarter report of 2020 two days ago (May 18), the Board has today decided to declare the dividend for the second quarter of 2020 to 20 cents ($0.20) to be paid on Friday September 4th 2020 to shareholders on record Friday August 28th. With this quarterly dividend of 20 cents for the second quarter of 2020, the accumulated declared cash dividend for the first two quarters of 2020 is 34 cents ($0.34) per share. This amount of 34 cents is paid to shareholders over a period of less than 4 months.