About NORDIC AMERICAN TANKERS Ltd
Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 25 Suezmax crude oil tankers.
The company was formerly known as Nordic American Tanker Shipping Limited and changed its name to Nordic American Tankers Limited in June 2011. Nordic American Tankers Limited was incorporated in 1995 and is based in Hamilton, Bermuda.
NAT operates in the Transportation, Communications, Electric, Gas, And Sanitary Services | Transportation | approximately 20 employees | led by CEO Herbjørn Hansson.
$465 million 10.0x P/E 0.9x P/B 5.2x EV/EBITDA 8.9% ROE -10.7% rev. growth 18.0% yield
NORDIC AMERICAN TANKERS Ltd earns a Buy rating from our quantitative model with a composite score of 74/100, ranking #25 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 88/100, which places NAT in the top 12 percent of all stocks on this measure. momentum at 85/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, NAT ranks 5th out of 50 peers, placing it in the 90th percentile. At $465 million, the company is a small-cap stock with higher potential but also higher risk.
Quality Analysis
NORDIC AMERICAN TANKERS Ltd's quality score of 82/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 8.9% trails the sector median of 12.0%. Gross margins of 64.4% reflect strong pricing power and competitive moats. Operating margins of 22.1% sit above the 15.0% sector average.
Net margins of 13.3% show the company is profitable, though not with exceptional efficiency.
Valuation Assessment
A value score of 88/100 puts NAT in the top 12 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 10.0x, an EV/EBITDA of 5.2x, a price-to-book of 0.9x, a price-to-sales of 1.3x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
NORDIC AMERICAN TANKERS Ltd's momentum score of 85/100 places it among the strongest trending stocks in the market. The stock has been outperforming roughly 85 percent of all other companies over the relevant measurement window. The academic literature, starting with Jegadeesh and Titman's seminal 1993 research, demonstrates that stocks with this kind of relative strength tend to continue outperforming for three to twelve months.
Revenue growth of -10.7% is declining, which makes the momentum signal more precarious. A beta of 0.39 means NORDIC AMERICAN TANKERS Ltd moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Small-cap illiquidity. At $465 million, NAT has lower trading volume and wider bid-ask spreads than large-cap peers. This can amplify short-term price volatility and make it harder for larger investors to build or exit positions without moving the stock.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support NORDIC AMERICAN TANKERS Ltd's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
NORDIC AMERICAN TANKERS Ltd earns a Buy rating with a composite score of 74/100 and 4 out of 5 stars, ranking #25 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position NAT above the majority of the market.
Explore the full NAT analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
