FLEX LNG LTD (FLNG)
BMG359472021 - Common Stock
Overall FLNG gets a fundamental rating of 5 out of 10. We evaluated FLNG against 214 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FLNG was profitable.
In the past year FLNG had a positive cash flow from operations.
In the past 5 years FLNG has always been profitable.
FLNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FLNG's Return On Assets of 4.43% is on the low side compared to the rest of the industry. FLNG is outperformed by 62.15% of its industry peers.
FLNG has a Return On Equity (14.16%) which is in line with its industry peers.
The Return On Invested Capital of FLNG (6.71%) is comparable to the rest of the industry.
FLNG had an Average Return On Invested Capital over the past 3 years of 6.50%. This is significantly below the industry average of 44.55%.
The 3 year average ROIC (6.50%) for FLNG is below the current ROIC(6.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 14.16% | ||
| ROIC | 6.71% |
ROA(3y)5.92%
ROA(5y)3.83%
ROE(3y)17.71%
ROE(5y)11.22%
ROIC(3y)6.5%
ROIC(5y)5%
1.3 Margins
With a decent Profit Margin value of 32.35%, FLNG is doing good in the industry, outperforming 74.77% of the companies in the same industry.
FLNG's Profit Margin has improved in the last couple of years.
FLNG's Operating Margin of 58.53% is amongst the best of the industry. FLNG outperforms 90.19% 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 81.58%, FLNG belongs to the best of the industry, outperforming 89.25% of the companies in the same industry.
In the last couple of years the Gross Margin of FLNG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.53% | ||
| PM (TTM) | 32.35% | ||
| GM | 81.58% |
OM growth 3Y8.38%
OM growth 5Y9.28%
PM growth 3Y87.25%
PM growth 5Y16.22%
GM growth 3Y1.72%
GM growth 5Y4.29%
2. Health
2.1 Basic Checks
FLNG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FLNG has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FLNG has been reduced compared to 5 years ago.
The debt/assets ratio for FLNG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that FLNG is in the distress zone and has some risk of bankruptcy.
FLNG has a worse Altman-Z score (0.81) than 63.55% of its industry peers.
The Debt to FCF ratio of FLNG is 10.35, which is on the high side as it means it would take FLNG, 10.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FLNG (10.35) is worse than 60.28% of its industry peers.
FLNG has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.02, FLNG is doing worse than 84.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | 10.35 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.92
WACC7.27%
2.3 Liquidity
FLNG has a Current Ratio of 2.89. This indicates that FLNG is financially healthy and has no problem in meeting its short term obligations.
FLNG's Current ratio of 2.89 is amongst the best of the industry. FLNG outperforms 81.78% of its industry peers.
A Quick Ratio of 2.86 indicates that FLNG has no problem at all paying its short term obligations.
FLNG has a better Quick ratio (2.86) than 82.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.86 |
3. Growth
3.1 Past
FLNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.83%.
FLNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 64.57% yearly.
The Revenue has been growing slightly by 6.64% in the past year.
FLNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.88% yearly.
EPS 1Y (TTM)-20.83%
EPS 3Y56.48%
EPS 5Y64.57%
EPS growth Q2Q-41.67%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y31.15%
Revenue growth 5Y36.88%
Revenue growth Q2Q-0.71%
3.2 Future
Based on estimates for the next years, FLNG will show a decrease in Earnings Per Share. The EPS will decrease by -1.41% on average per year.
FLNG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.82% yearly.
EPS Next Y3.82%
EPS Next 2Y0.19%
EPS Next 3Y-1.41%
EPS Next 5YN/A
Revenue Next Year-1.15%
Revenue Next 2Y-0.93%
Revenue Next 3Y-0.82%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.04, the valuation of FLNG can be described as reasonable.
FLNG's Price/Earnings ratio is in line with the industry average.
FLNG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
FLNG is valuated reasonably with a Price/Forward Earnings ratio of 10.61.
Based on the Price/Forward Earnings ratio, FLNG is valued a bit cheaper than the industry average as 61.68% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.88. FLNG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.61 |
4.2 Price Multiples
FLNG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FLNG is more expensive than 64.02% of the companies in the same industry.
FLNG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FLNG is cheaper than 71.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.17 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FLNG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)0.17
EPS Next 2Y0.19%
EPS Next 3Y-1.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.32%, FLNG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.78, FLNG pays a better dividend. On top of this FLNG pays more dividend than 92.52% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, FLNG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.32% |
5.2 History
The dividend of FLNG is nicely growing with an annual growth rate of 165.66%!
FLNG has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)165.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FLNG pays out 150.97% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of FLNG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP150.97%
EPS Next 2Y0.19%
EPS Next 3Y-1.41%
FLEX LNG LTD
NYSE:FLNG (5/3/2024, 7:04:00 PM)
After market: 26.6 0 (0%)26.6
+0.09 (+0.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.32% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.89
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 14.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 58.53% | ||
| PM (TTM) | 32.35% | ||
| GM | 81.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20.83%
EPS 3Y56.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.64%
Revenue growth 3Y31.15%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y