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 208 industry peers in the Oil, Gas & Consumable Fuels industry. While FLNG belongs to the best of the industry regarding profitability, 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.
Each year in the past 5 years FLNG has been profitable.
In the past 5 years FLNG always reported a positive cash flow from operatings.
1.2 Ratios
FLNG has a Return On Assets (4.41%) which is in line with its industry peers.
FLNG has a better Return On Equity (14.59%) than 71.63% of its industry peers.
FLNG has a Return On Invested Capital (6.22%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FLNG is significantly below the industry average of 23.87%.
| 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 86.06% of its industry peers.
FLNG's Profit Margin has improved in the last couple of years.
FLNG's Operating Margin of 55.51% is amongst the best of the industry. FLNG outperforms 91.83% of its industry peers.
FLNG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 80.38%, FLNG belongs to the best of the industry, outperforming 90.87% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FLNG is destroying value.
The number of shares outstanding for FLNG has been increased compared to 1 year ago.
Compared to 5 years ago, FLNG has about the same amount of shares outstanding.
FLNG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that FLNG is in the distress zone and has some risk of bankruptcy.
FLNG's Altman-Z score of 0.82 is in line compared to the rest of the industry. FLNG outperforms 41.83% of its industry peers.
FLNG has a debt to FCF ratio of 9.90. This is a negative value and a sign of low solvency as FLNG would need 9.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.90, FLNG is in line with its industry, outperforming 51.92% of the companies in the same industry.
A Debt/Equity ratio of 2.11 is on the high side and indicates that FLNG has dependencies on debt financing.
The Debt to Equity ratio of FLNG (2.11) is worse than 80.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 9.9 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.7
WACC8.91%
2.3 Liquidity
A Current Ratio of 2.99 indicates that FLNG has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.99, FLNG belongs to the best of the industry, outperforming 85.58% of the companies in the same industry.
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's Quick ratio of 2.96 is amongst the best of the industry. FLNG outperforms 86.54% 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%.
Measured over the past years, FLNG shows a very strong growth in Earnings Per Share. The EPS has been growing by 46.48% on average per year.
The Revenue has decreased by -3.95% in the past year.
FLNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.33% yearly.
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.
Based on estimates for the next years, FLNG will show a small growth in Revenue. The Revenue will grow by 0.25% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 11.62, which indicates a very decent valuation of FLNG.
Compared to the rest of the industry, the Price/Earnings ratio of FLNG indicates a somewhat cheap valuation: FLNG is cheaper than 66.83% of the companies listed in the same industry.
FLNG is valuated cheaply when we compare the Price/Earnings ratio to 27.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.48, the valuation of FLNG can be described as reasonable.
Based on the Price/Forward Earnings ratio, FLNG is valued a bit cheaper than the industry average as 60.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 37.11. FLNG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FLNG is on the same level as its industry peers.
FLNG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLNG is cheaper than 82.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| EV/EBITDA | 10.12 |
4.3 Compensation for Growth
FLNG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-2.87%
EPS Next 3Y-0.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.02%, FLNG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.37, FLNG pays a better dividend. On top of this FLNG pays more dividend than 95.19% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.02% |
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.
The dividend of FLNG decreased 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%
25.56
+1.39 (+5.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners24.72%
Inst Owner Change0.91%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap1.39B
Analysts73.85
Price Target28.17 (10.21%)
Short Float %6.34%
Short Ratio4.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.02% |
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)0%
PT rev (3m)-2.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 11.48 | ||
| P/S | 3.91 | ||
| P/FCF | 7.62 | ||
| P/OCF | 7.62 | ||
| P/B | 1.73 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 10.12 |
EPS(TTM)2.2
EY8.61%
EPS(NY)2.23
Fwd EY8.71%
FCF(TTM)3.35
FCFY13.12%
OCF(TTM)3.35
OCFY13.12%
SpS6.54
BVpS14.8
TBVpS14.8
PEG (NY)N/A
PEG (5Y)0.25
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 | 0.82 |
F-Score4
WACC8.91%
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%