Nabors Industries Ltd. (NBR)

FairStock Score: 74/100 — STEADY

Key Financials

AI Analysis

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

As a Buffett/Graham investor, I see Nabors as a cyclical oilfield-services operator, not a wide-moat franchise. Its four segments—U.S. Drilling, International Drilling, Drilling Solutions, Rig Technologies—sell capital-intensive drilling services, where pricing power depends on rig demand and commodity prices. The filed numbers are volatile: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $814.8 million and net income was negative $22.3 million; fiscal Q1 2026, ended 2026-03-31, had revenue of $783.5 million and a net loss of $15.2 million. Yet fiscal Q3 2025, ended 2025-09-30, produced net income of $274.2 million and diluted EPS of $16.85, pulling FY2025 to net income of $286.6 million and EPS of $17.39 after FY2024's net loss of $176.1 million. That is why FairStock labels it a TURNAROUND, but the latest two quarters show the turnaround is not yet steady. Financial health is the main worry: debt-to-equity is 1.48, ROCE is only 3.28%, and Altman Z-Score is 0.04. Free cash flow is $39.7 million, a 3.1% FCF yield. At the 2026-10-13 close of $80.39, FairStock's P/E is 5.42, P/B 2.19, EV/EBITDA 2.22, PEG 0.20, and Graham Number is $110.71, a 27.39% margin of safety. The price looks statistically cheap, but the low trailing P/E may reflect one outsized quarter. I would want evidence of durable earnings and lower leverage before trusting the margin of safety.

In plain English: Nabors Industries provides drilling services and equipment for oil and gas wells around the world. The business looks uneven: it had a profitable year, but it lost money in the last two reported quarters and carries a lot of debt. At $80.39, the shares look cheap on several simple measures, but the weak recent results make that cheapness uncertain.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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