GOLAR LNG LTD (GLNG)
BMG9456A1009 - Common Stock
We assign a fundamental rating of 3 out of 10 to GLNG. GLNG was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of GLNG while its profitability can be described as average. GLNG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GLNG was profitable.
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
Looking at the Return On Assets, with a value of -1.15%, GLNG is doing worse than 81.43% of the companies in the same industry.
GLNG has a Return On Equity of -2.26%. This is in the lower half of the industry: GLNG underperforms 78.10% of its industry peers.
GLNG has a Return On Invested Capital of 2.36%. This is in the lower half of the industry: GLNG underperforms 78.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GLNG is significantly below the industry average of 30.77%.
The 3 year average ROIC (2.06%) for GLNG is below the current ROIC(2.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.15% | ||
| ROE | -2.26% | ||
| ROIC | 2.36% |
ROA(3y)8.54%
ROA(5y)2.94%
ROE(3y)17.72%
ROE(5y)3.57%
ROIC(3y)2.06%
ROIC(5y)2.4%
1.3 Margins
Looking at the Operating Margin, with a value of 35.40%, GLNG is in the better half of the industry, outperforming 67.62% of the companies in the same industry.
GLNG's Operating Margin has improved in the last couple of years.
GLNG has a better Gross Margin (68.74%) than 74.29% of its industry peers.
GLNG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.4% | ||
| PM (TTM) | N/A | ||
| GM | 68.74% |
OM growth 3Y-3.75%
OM growth 5Y9.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.93%
GM growth 5Y5.36%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for GLNG has been increased compared to 5 years ago.
GLNG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that GLNG is in the distress zone and has some risk of bankruptcy.
GLNG's Altman-Z score of 1.36 is in line compared to the rest of the industry. GLNG outperforms 46.67% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that GLNG is not too dependend on debt financing.
GLNG has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACC0.31
WACC7.68%
2.3 Liquidity
GLNG has a Current Ratio of 1.49. This is a normal value and indicates that GLNG is financially healthy and should not expect problems in meeting its short term obligations.
GLNG has a Current ratio of 1.49. This is in the better half of the industry: GLNG outperforms 62.86% of its industry peers.
A Quick Ratio of 1.49 indicates that GLNG should not have too much problems paying its short term obligations.
GLNG has a better Quick ratio (1.49) than 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
GLNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.38%, which is quite impressive.
The Revenue has grown by 11.48% in the past year. This is quite good.
The Revenue has been decreasing by -7.07% on average over the past years.
EPS 1Y (TTM)59.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%78.04%
Revenue 1Y (TTM)11.48%
Revenue growth 3Y4.51%
Revenue growth 5Y-7.07%
Sales Q2Q%-12.18%
3.2 Future
The Earnings Per Share is expected to decrease by -18.40% on average over the next years. This is quite bad
The Revenue is expected to grow by 16.28% on average over the next years. This is quite good.
EPS Next Y-23.74%
EPS Next 2Y-8.76%
EPS Next 3Y-18.4%
EPS Next 5YN/A
Revenue Next Year-0.2%
Revenue Next 2Y25.68%
Revenue Next 3Y16.28%
Revenue Next 5YN/A
3.3 Evolution
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
With a Price/Earnings ratio of 13.71, GLNG is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GLNG is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 24.41. GLNG is valued slightly cheaper when compared to this.
GLNG is valuated rather expensively with a Price/Forward Earnings ratio of 17.82.
69.05% of the companies in the same industry are cheaper than GLNG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.59. GLNG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 17.82 |
4.2 Price Multiples
GLNG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GLNG is more expensive than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.03 |
4.3 Compensation for Growth
A cheap valuation may be justified as GLNG's earnings are expected to decrease with -18.40% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.76%
EPS Next 3Y-18.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.94%, GLNG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.93, GLNG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, GLNG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of GLNG decreases each year by -10.40%.
GLNG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-10.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of GLNG are negative and hence is the payout ratio. GLNG will probably not be able to sustain this dividend level.
GLNG's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-169.82%
EPS Next 2Y-8.76%
EPS Next 3Y-18.4%
GOLAR LNG LTD
NASDAQ:GLNG (7/26/2024, 7:00:01 PM)
After market: 35.24 0 (0%)35.24
-0.12 (-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 Cap3.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
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 | 13.71 | ||
| Fwd PE | 17.82 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.15% | ||
| ROE | -2.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.4% | ||
| PM (TTM) | N/A | ||
| GM | 68.74% | ||
| 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)59.38%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-23.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.48%
Revenue growth 3Y4.51%
Revenue growth 5Y
Sales 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