FLEX LNG LTD (FLNG.OL) Stock Fundamental Analysis
Europe • Euronext Oslo • OSL:FLNG • BMG359472021
254 NOK
+4 (+1.6%)
Last: Sep 15, 2025, 07:00 PM
FLNG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 industry peers in the Oil, Gas & Consumable Fuels industry. While FLNG has a great profitability rating, there are some minor concerns on its financial health. FLNG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year FLNG was profitable.
- FLNG had a positive operating cash flow in the past year.
- FLNG had positive earnings in each of the past 5 years.
- FLNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.77%, FLNG is in line with its industry, outperforming 53.13% of the companies in the same industry.
- With a decent Return On Equity value of 13.00%, FLNG is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- FLNG's Return On Invested Capital of 6.02% is in line compared to the rest of the industry. FLNG outperforms 51.56% of its industry peers.
- FLNG had an Average Return On Invested Capital over the past 3 years of 6.24%. This is below the industry average of 8.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 13% | ||
| ROIC | 6.02% |
ROA(3y)5.29%
ROA(5y)4.5%
ROE(3y)16.49%
ROE(5y)13.74%
ROIC(3y)6.24%
ROIC(5y)5.55%
1.3 Margins
- The Profit Margin of FLNG (27.84%) is better than 90.63% of its industry peers.
- In the last couple of years the Profit Margin of FLNG has grown nicely.
- The Operating Margin of FLNG (54.11%) is better than 96.88% of its industry peers.
- In the last couple of years the Operating Margin of FLNG has grown nicely.
- With an excellent Gross Margin value of 79.84%, FLNG belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
- FLNG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.11% | ||
| PM (TTM) | 27.84% | ||
| GM | 79.84% |
OM growth 3Y-1.78%
OM growth 5Y3.9%
PM growth 3Y-11.24%
PM growth 5Y18.48%
GM growth 3Y-0.73%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FLNG is destroying value.
- Compared to 1 year ago, FLNG has more shares outstanding
- Compared to 5 years ago, FLNG has about the same amount of shares outstanding.
- Compared to 1 year ago, FLNG has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.83, we must say that FLNG is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.83, FLNG is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
- The Debt to FCF ratio of FLNG is 10.76, which is on the high side as it means it would take FLNG, 10.76 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.76, FLNG is in line with its industry, outperforming 42.19% of the companies in the same industry.
- A Debt/Equity ratio of 2.23 is on the high side and indicates that FLNG has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.23, FLNG is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.23 | ||
| Debt/FCF | 10.76 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.7
WACC8.59%
2.3 Liquidity
- FLNG has a Current Ratio of 2.84. This indicates that FLNG is financially healthy and has no problem in meeting its short term obligations.
- FLNG's Current ratio of 2.84 is amongst the best of the industry. FLNG outperforms 87.50% of its industry peers.
- A Quick Ratio of 2.81 indicates that FLNG has no problem at all paying its short term obligations.
- FLNG has a Quick ratio of 2.81. This is amongst the best in the industry. FLNG outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
- FLNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.13%.
- FLNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.48% yearly.
- FLNG shows a decrease in Revenue. In the last year, the revenue decreased by -2.98%.
- Measured over the past years, FLNG shows a very strong growth in Revenue. The Revenue has been growing by 24.33% on average per year.
EPS 1Y (TTM)-16.13%
EPS 3Y-4.38%
EPS 5Y46.48%
EPS Q2Q%-17.86%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y1.24%
Revenue growth 5Y24.33%
Sales Q2Q%1.52%
3.2 Future
- Based on estimates for the next years, FLNG will show a small growth in Earnings Per Share. The EPS will grow by 0.97% on average per year.
- FLNG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.47% yearly.
EPS Next Y-16.37%
EPS Next 2Y-2.64%
EPS Next 3Y0.97%
EPS Next 5YN/A
Revenue Next Year-3.76%
Revenue Next 2Y-0.16%
Revenue Next 3Y0.47%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.06, the valuation of FLNG can be described as correct.
- Based on the Price/Earnings ratio, FLNG is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- FLNG is valuated cheaply when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 11.32, which indicates a very decent valuation of FLNG.
- The rest of the industry has a similar Price/Forward Earnings ratio as FLNG.
- When comparing the Price/Forward Earnings ratio of FLNG to the average of the S&P500 Index (25.64), we can say FLNG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FLNG is valued a bit more expensive than the industry average as 65.63% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLNG indicates a rather cheap valuation: FLNG is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 10.33 |
4.3 Compensation for Growth
- The decent profitability rating of FLNG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-2.64%
EPS Next 3Y0.97%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 11.87%, FLNG is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.10, FLNG pays a better dividend. On top of this FLNG pays more dividend than 93.75% of the companies listed in the same industry.
- FLNG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.87% |
5.2 History
- The dividend of FLNG is nicely growing with an annual growth rate of 97.42%!
Dividend Growth(5Y)97.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 163.62% of the earnings are spent on dividend by FLNG. This is not a sustainable payout ratio.
- FLNG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP163.62%
EPS Next 2Y-2.64%
EPS Next 3Y0.97%
FLEX LNG LTD / FLNG.OL FAQ
Can you provide the ChartMill fundamental rating for FLEX LNG LTD?
ChartMill assigns a fundamental rating of 5 / 10 to FLNG.OL.
What is the valuation status for FLNG stock?
ChartMill assigns a valuation rating of 5 / 10 to FLEX LNG LTD (FLNG.OL). This can be considered as Fairly Valued.
How profitable is FLEX LNG LTD (FLNG.OL) stock?
FLEX LNG LTD (FLNG.OL) has a profitability rating of 7 / 10.
What is the valuation of FLEX LNG LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FLEX LNG LTD (FLNG.OL) is 12.06 and the Price/Book (PB) ratio is 1.81.
What is the earnings growth outlook for FLEX LNG LTD?
The Earnings per Share (EPS) of FLEX LNG LTD (FLNG.OL) is expected to decline by -16.37% in the next year.