FLEX LNG LTD (FLNG) Stock Fundamental Analysis
NYSE:FLNG - New York Stock Exchange, Inc. - BMG359472021 - Common Stock - Currency: USD
FLNG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. FLNG scores excellent on profitability, but there are some minor concerns on its financial health. FLNG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FLNG had positive earnings in the past year.
In the past year FLNG had a positive cash flow from operations.
In the past 5 years FLNG has always been profitable.
Each year in the past 5 years FLNG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FLNG (4.41%) is comparable to the rest of the industry.
FLNG has a better Return On Equity (14.59%) than 71.36% of its industry peers.
FLNG has a Return On Invested Capital of 6.22%. This is comparable to the rest of the industry: FLNG outperforms 54.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FLNG is significantly below the industry average of 23.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 14.59% | ||
| ROIC | 6.22% |
ROA(3y)5.29%
ROA(5y)4.5%
ROE(3y)16.49%
ROE(5y)13.74%
ROIC(3y)6.4%
ROIC(5y)5.69%
1.3 Margins
FLNG's Profit Margin of 33.02% is amongst the best of the industry. FLNG outperforms 86.39% of its industry peers.
FLNG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 55.51%, FLNG belongs to the top of the industry, outperforming 92.02% of the companies in the same industry.
FLNG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.38%, FLNG belongs to the top of the industry, outperforming 90.61% 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 | 55.51% | ||
| PM (TTM) | 33.02% | ||
| GM | 80.38% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FLNG is destroying value.
Compared to 1 year ago, FLNG has more shares outstanding
FLNG has about the same amout of shares outstanding than it did 5 years ago.
FLNG has a worse debt/assets ratio than last year.
2.2 Solvency
FLNG has an Altman-Z score of 0.80. This is a bad value and indicates that FLNG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FLNG (0.80) is worse than 60.56% of its industry peers.
The Debt to FCF ratio of FLNG is 9.90, which is on the high side as it means it would take FLNG, 9.90 years of fcf income to pay off all of its debts.
FLNG has a Debt to FCF ratio of 9.90. This is comparable to the rest of the industry: FLNG outperforms 51.64% of its industry peers.
A Debt/Equity ratio of 2.11 is on the high side and indicates that FLNG has dependencies on debt financing.
FLNG's Debt to Equity ratio of 2.11 is on the low side compared to the rest of the industry. FLNG is outperformed by 81.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 9.9 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.7
WACC8.83%
2.3 Liquidity
FLNG has a Current Ratio of 2.99. This indicates that FLNG is financially healthy and has no problem in meeting its short term obligations.
FLNG's Current ratio of 2.99 is amongst the best of the industry. FLNG outperforms 85.45% of its industry peers.
FLNG has a Quick Ratio of 2.96. This indicates that FLNG is financially healthy and has no problem in meeting its short term obligations.
FLNG has a Quick ratio of 2.96. This is amongst the best in the industry. FLNG outperforms 86.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
FLNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.71%.
The Earnings Per Share has been growing by 46.48% on average over the past years. This is a very strong growth
Looking at the last year, FLNG shows a decrease in Revenue. The Revenue has decreased by -3.95% in the last year.
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)-10.71%
EPS 3Y-4.38%
EPS 5Y46.48%
EPS Q2Q%-22.86%
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y1.24%
Revenue growth 5Y24.33%
Sales Q2Q%-1.99%
3.2 Future
The Earnings Per Share is expected to decrease by -0.27% on average over the next years.
The Revenue is expected to grow by 0.25% on average over the next years.
EPS Next Y-18.56%
EPS Next 2Y-2.87%
EPS Next 3Y-0.27%
EPS Next 5YN/A
Revenue Next Year-3.61%
Revenue Next 2Y-0.05%
Revenue Next 3Y0.25%
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
FLNG is valuated reasonably with a Price/Earnings ratio of 10.89.
Based on the Price/Earnings ratio, FLNG is valued a bit cheaper than the industry average as 68.54% of the companies are valued more expensively.
FLNG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.55.
A Price/Forward Earnings ratio of 10.76 indicates a reasonable valuation of FLNG.
FLNG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLNG is cheaper than 62.44% of the companies in the same industry.
FLNG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FLNG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLNG indicates a rather cheap valuation: FLNG is cheaper than 81.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
The decent profitability rating of FLNG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-2.87%
EPS Next 3Y-0.27%
5. Dividend
5.1 Amount
FLNG has a Yearly Dividend Yield of 12.13%, which is a nice return.
Compared to an average industry Dividend Yield of 6.74, FLNG pays a better dividend. On top of this FLNG pays more dividend than 92.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, FLNG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.13% |
5.2 History
The dividend of FLNG is nicely growing with an annual growth rate of 97.42%!
FLNG has been paying a dividend for over 5 years, so it has already some track record.
FLNG has decreased its dividend recently.
Dividend Growth(5Y)97.42%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
137.38% of the earnings are spent on dividend by FLNG. This is not a sustainable payout ratio.
FLNG's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP137.38%
EPS Next 2Y-2.87%
EPS Next 3Y-0.27%
23.95
-0.79 (-3.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners22.75%
Inst Owner Change7.9%
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap1.31B
Analysts72.86
Price Target27.93 (16.62%)
Short Float %7.67%
Short Ratio6.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.13% |
Yearly Dividend3
Dividend Growth(5Y)97.42%
DP137.38%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.99%
Min EPS beat(2)-10.02%
Max EPS beat(2)0.05%
EPS beat(4)3
Avg EPS beat(4)4.53%
Min EPS beat(4)-10.02%
Max EPS beat(4)18.84%
EPS beat(8)3
Avg EPS beat(8)-3.3%
EPS beat(12)5
Avg EPS beat(12)-0.08%
EPS beat(16)7
Avg EPS beat(16)0.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)-0.94%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-3.29%
Max Revenue beat(4)-0.94%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)1
Avg Revenue beat(12)-2.22%
Revenue beat(16)2
Avg Revenue beat(16)-1.95%
PT rev (1m)-3.68%
PT rev (3m)5.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.62%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 10.76 | ||
| P/S | 3.66 | ||
| P/FCF | 7.14 | ||
| P/OCF | 7.14 | ||
| P/B | 1.62 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 9.8 |
EPS(TTM)2.2
EY9.19%
EPS(NY)2.23
Fwd EY9.3%
FCF(TTM)3.35
FCFY14%
OCF(TTM)3.35
OCFY14%
SpS6.54
BVpS14.8
TBVpS14.8
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 14.59% | ||
| ROCE | 7.88% | ||
| ROIC | 6.22% | ||
| ROICexc | 7.54% | ||
| ROICexgc | 7.54% | ||
| OM | 55.51% | ||
| PM (TTM) | 33.02% | ||
| GM | 80.38% | ||
| FCFM | 51.3% |
ROA(3y)5.29%
ROA(5y)4.5%
ROE(3y)16.49%
ROE(5y)13.74%
ROIC(3y)6.4%
ROIC(5y)5.69%
ROICexc(3y)7.59%
ROICexc(5y)6.55%
ROICexgc(3y)7.59%
ROICexgc(5y)6.55%
ROCE(3y)8.11%
ROCE(5y)7.21%
ROICexcg growth 3Y2.05%
ROICexcg growth 5Y20.33%
ROICexc growth 3Y2.05%
ROICexc growth 5Y20.33%
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%
F-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 9.9 | ||
| Debt/EBITDA | 6.23 | ||
| Cap/Depr | 0.01% | ||
| Cap/Sales | 0% | ||
| Interest Coverage | 1.88 | ||
| Cash Conversion | 66.89% | ||
| Profit Quality | 155.33% | ||
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.96 | ||
| Altman-Z | 0.8 |
F-Score4
WACC8.83%
ROIC/WACC0.7
Cap/Depr(3y)0%
Cap/Depr(5y)406.61%
Cap/Sales(3y)0%
Cap/Sales(5y)99.57%
Profit Quality(3y)139.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.71%
EPS 3Y-4.38%
EPS 5Y46.48%
EPS Q2Q%-22.86%
EPS Next Y-18.56%
EPS Next 2Y-2.87%
EPS Next 3Y-0.27%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y1.24%
Revenue growth 5Y24.33%
Sales Q2Q%-1.99%
Revenue Next Year-3.61%
Revenue Next 2Y-0.05%
Revenue Next 3Y0.25%
Revenue Next 5YN/A
EBIT growth 1Y-8.92%
EBIT growth 3Y-0.56%
EBIT growth 5Y29.17%
EBIT Next Year29.53%
EBIT Next 3Y11.48%
EBIT Next 5YN/A
FCF growth 1Y4.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.44%
OCF growth 3Y-5.24%
OCF growth 5Y28.82%