40.31 USD
+0.6 (+1.51%)
GLNG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While GLNG is still in line with the averages on profitability rating, there are concerns on its financial health. GLNG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- GLNG had positive earnings in the past year.
- In the past year GLNG had a positive cash flow from operations.
- In multiple years GLNG reported negative net income over the last 5 years.
- GLNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GLNG's Return On Assets of 1.28% is on the low side compared to the rest of the industry. GLNG is outperformed by 61.84% of its industry peers.
- GLNG has a Return On Equity of 3.15%. This is in the lower half of the industry: GLNG underperforms 60.39% of its industry peers.
- With a Return On Invested Capital value of 1.70%, GLNG is not doing good in the industry: 70.53% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for GLNG is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (1.70%) for GLNG is above the 3 year average (1.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 3.15% | ||
| ROIC | 1.7% |
ROA(3y)6.14%
ROA(5y)4.09%
ROE(3y)10.59%
ROE(5y)6.9%
ROIC(3y)1.67%
ROIC(5y)1.97%
1.3 Margins
- GLNG's Profit Margin of 18.31% is fine compared to the rest of the industry. GLNG outperforms 72.95% of its industry peers.
- In the last couple of years the Profit Margin of GLNG has declined.
- GLNG has a better Operating Margin (26.12%) than 66.18% of its industry peers.
- In the last couple of years the Operating Margin of GLNG has declined.
- With a decent Gross Margin value of 58.32%, GLNG is doing good in the industry, outperforming 67.63% of the companies in the same industry.
- In the last couple of years the Gross Margin of GLNG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.12% | ||
| PM (TTM) | 18.31% | ||
| GM | 58.32% |
OM growth 3Y-23.38%
OM growth 5Y-9.29%
PM growth 3Y-50.3%
PM growth 5YN/A
GM growth 3Y-10.75%
GM growth 5Y-3.68%
2. Health
2.1 Basic Checks
- GLNG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- GLNG has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GLNG has more shares outstanding
- Compared to 1 year ago, GLNG has a worse debt to assets ratio.
2.2 Solvency
- GLNG has an Altman-Z score of 1.03. This is a bad value and indicates that GLNG is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.03, GLNG perfoms like the industry average, outperforming 45.89% of the companies in the same industry.
- A Debt/Equity ratio of 0.75 indicates that GLNG is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.75, GLNG is doing worse than 64.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.21
WACC8.26%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that GLNG should not have too much problems paying its short term obligations.
- The Current ratio of GLNG (1.32) is comparable to the rest of the industry.
- A Quick Ratio of 1.32 indicates that GLNG should not have too much problems paying its short term obligations.
- GLNG has a Quick ratio of 1.32. This is in the better half of the industry: GLNG outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
- GLNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.49%.
- The Earnings Per Share has been decreasing by -2.16% on average over the past years.
- Looking at the last year, GLNG shows a quite strong growth in Revenue. The Revenue has grown by 19.15% in the last year.
- GLNG shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -10.32% yearly.
EPS 1Y (TTM)-41.49%
EPS 3Y-2.16%
EPS 5YN/A
EPS Q2Q%1.74%
Revenue 1Y (TTM)19.15%
Revenue growth 3Y0.01%
Revenue growth 5Y-10.32%
Sales Q2Q%89.08%
3.2 Future
- Based on estimates for the next years, GLNG will show a very negative growth in Earnings Per Share. The EPS will decrease by -49.19% on average per year.
- The Revenue is expected to grow by 14.64% on average over the next years. This is quite good.
EPS Next Y-17.7%
EPS Next 2Y-32.73%
EPS Next 3Y-49.19%
EPS Next 5YN/A
Revenue Next Year37.2%
Revenue Next 2Y17.66%
Revenue Next 3Y14.64%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 30.31 indicates a quite expensive valuation of GLNG.
- 61.35% of the companies in the same industry are cheaper than GLNG, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. GLNG is around the same levels.
- Based on the Price/Forward Earnings ratio of 55.96, the valuation of GLNG can be described as expensive.
- Based on the Price/Forward Earnings ratio, GLNG is valued a bit more expensive than the industry average as 62.32% of the companies are valued more cheaply.
- GLNG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.31 | ||
| Fwd PE | 55.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GLNG is valued a bit more expensive than the industry average as 71.98% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 39.5 |
4.3 Compensation for Growth
- GLNG's earnings are expected to decrease with -49.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-32.73%
EPS Next 3Y-49.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.47%, GLNG has a reasonable but not impressive dividend return.
- GLNG's Dividend Yield is comparable with the industry average which is at 3.73.
- GLNG's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
- The dividend of GLNG is nicely growing with an annual growth rate of 12.28%!
- GLNG has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of GLNG decreased recently.
Dividend Growth(5Y)12.28%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- GLNG pays out 173.93% of its income as dividend. This is not a sustainable payout ratio.
- GLNG's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP173.93%
EPS Next 2Y-32.73%
EPS Next 3Y-49.19%
GOLAR LNG LTD / GLNG FAQ
What is the ChartMill fundamental rating of GOLAR LNG LTD (GLNG) stock?
ChartMill assigns a fundamental rating of 3 / 10 to GLNG.
What is the valuation status of GOLAR LNG LTD (GLNG) stock?
ChartMill assigns a valuation rating of 0 / 10 to GOLAR LNG LTD (GLNG). This can be considered as Overvalued.
How profitable is GOLAR LNG LTD (GLNG) stock?
GOLAR LNG LTD (GLNG) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for GLNG stock?
The Earnings per Share (EPS) of GOLAR LNG LTD (GLNG) is expected to decline by -17.7% in the next year.
Can you provide the dividend sustainability for GLNG stock?
The dividend rating of GOLAR LNG LTD (GLNG) is 4 / 10 and the dividend payout ratio is 173.93%.