Nordic American Tankers Limited Common Stock (NAT)

FairStock Score: 12/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at a discount. Nordic American Tankers is not that in the classic sense. It owns 20 double-hull Suezmax crude tankers and charters them to oil companies and traders. Shipping is a commodity business: rates swing, and there is little pricing power. Still, the latest reported quarter—fiscal Q2 2026—showed revenue of $79.3 million and net income of $68.3 million, an 86.17% net margin. That is a spectacular number, but I treat peak-cycle shipping profits as temporary, not a steady annuity. The supplied FairStock calculations at the 2026-10-13 close show a P/E of 15.16 and P/B of 3.89. A Graham Number of $5.43 versus an $8.79 price leaves a margin of safety of -61.88%, so this is no asset bargain. Returns are mixed: ROE 25.66% but ROCE 7.17%, suggesting leverage and cycle effects. Debt/equity is 0.85 and Altman Z is 2.09, not a fortress balance sheet. Free cash flow of $119.1 million and a 10.1% FCF yield are attractive, and the 13.09% dividend yield will draw income investors. The Piotroski 9/9 is encouraging. But the FairStock Score is 12/100, PEG 0.02 likely reflects a profit spike, and no Lynch category exists because only 0 years of filed results are available. I would want a much wider discount before calling this a value opportunity. Good cash generation at a full price is still a full price.

In plain English: Nordic American Tankers owns and charters a fleet of 20 Suezmax crude oil tankers. In its latest reported quarter, the company was profitable and it pays a large dividend, but tanker shipping can swing sharply from good times to bad. The shares look expensive compared with a conservative asset-value estimate, and an independent scoring system rates the stock poorly, so the numbers do not suggest a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer