FLEX LNG LTD (FLNG) Stock Fundamental Analysis
NYSE:FLNG - New York Stock Exchange, Inc. - BMG359472021 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FLNG. FLNG was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. FLNG has an excellent profitability rating, 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
In the past year FLNG was profitable.
FLNG had a positive operating cash flow in the past year.
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
FLNG has a Return On Assets (4.41%) which is in line with its industry peers.
FLNG has a Return On Equity of 14.59%. This is in the better half of the industry: FLNG outperforms 71.63% of its industry peers.
With a Return On Invested Capital value of 6.22%, FLNG perfoms like the industry average, outperforming 55.77% of the companies in the same industry.
FLNG had an Average Return On Invested Capital over the past 3 years of 6.40%. This is significantly below the industry average of 23.86%.
| 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
The Profit Margin of FLNG (33.02%) is better than 86.06% of its industry peers.
In the last couple of years the Profit Margin of FLNG has grown nicely.
FLNG's Operating Margin of 55.51% is amongst the best of the industry. FLNG outperforms 91.83% of its industry peers.
In the last couple of years the Operating Margin of FLNG has grown nicely.
The Gross Margin of FLNG (80.38%) is better than 90.87% of its industry peers.
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.
FLNG has more shares outstanding than it did 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
FLNG has an Altman-Z score of 0.82. This is a bad value and indicates that FLNG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.82, FLNG is in line with its industry, outperforming 41.35% of the companies in the same industry.
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.
FLNG has a Debt/Equity ratio of 2.11. This is a high value indicating a heavy dependency on external financing.
FLNG has a worse Debt to Equity ratio (2.11) than 80.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 9.9 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.71
WACC8.81%
2.3 Liquidity
A Current Ratio of 2.99 indicates that FLNG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.99, FLNG belongs to the top of the industry, outperforming 85.58% of the companies in the same industry.
A Quick Ratio of 2.96 indicates that FLNG has no problem at all paying its short term obligations.
FLNG has a better Quick ratio (2.96) than 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
The earnings per share for FLNG have decreased strongly by -10.71% in the last year.
FLNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.48% yearly.
The Revenue has decreased by -3.95% in the past 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.
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
With a Price/Earnings ratio of 11.40, the valuation of FLNG can be described as very reasonable.
Based on the Price/Earnings ratio, FLNG is valued a bit cheaper than 67.79% of the companies in the same industry.
FLNG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
The Price/Forward Earnings ratio is 11.26, which indicates a very decent valuation of FLNG.
Based on the Price/Forward Earnings ratio, FLNG is valued a bit cheaper than 60.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.80. FLNG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
FLNG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FLNG is valued cheaply inside the industry as 83.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.48 | ||
| EV/EBITDA | 10.04 |
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
FLNG has a Yearly Dividend Yield of 13.02%, which is a nice return.
Compared to an average industry Dividend Yield of 6.35, FLNG pays a better dividend. On top of this FLNG pays more dividend than 95.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, FLNG pays a better dividend.
| 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.
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%
25.07
-0.05 (-0.2%)
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 Cap1.37B
Analysts73.85
Price Target28.17 (12.37%)
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 | 11.4 | ||
| Fwd PE | 11.26 | ||
| P/S | 3.84 | ||
| P/FCF | 7.48 | ||
| P/OCF | 7.48 | ||
| P/B | 1.69 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 10.04 |
EPS(TTM)2.2
EY8.78%
EPS(NY)2.23
Fwd EY8.88%
FCF(TTM)3.35
FCFY13.37%
OCF(TTM)3.35
OCFY13.37%
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
WACC8.81%
ROIC/WACC0.71
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%