CHENIERE ENERGY INC (LNG) Stock Fundamental Analysis
USA - NYSE:LNG - US16411R2085 - Common Stock
219.59 USD
-1.95 (-0.88%)
219.75 USD
+0.16 (+0.07%)
Taking everything into account, LNG scores 5 out of 10 in our fundamental rating. LNG was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. LNG scores excellent on profitability, but there are some minor concerns on its financial health. LNG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LNG had positive earnings in the past year.
In the past year LNG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: LNG reported negative net income in multiple years.
LNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.63%, LNG belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
LNG has a better Return On Equity (57.39%) than 94.74% of its industry peers.
LNG has a Return On Invested Capital of 14.11%. This is amongst the best in the industry. LNG outperforms 90.43% of its industry peers.
LNG had an Average Return On Invested Capital over the past 3 years of 19.06%. This is below the industry average of 21.70%.
The last Return On Invested Capital (14.11%) for LNG is well below the 3 year average (19.06%), which needs to be investigated, but indicates that LNG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 57.39% | ||
| ROIC | 14.11% |
ROA(3y)11.27%
ROA(5y)5.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.06%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 21.05%, LNG is doing good in the industry, outperforming 74.64% of the companies in the same industry.
LNG's Profit Margin has improved in the last couple of years.
LNG has a Operating Margin of 37.61%. This is amongst the best in the industry. LNG outperforms 85.17% of its industry peers.
LNG's Operating Margin has improved in the last couple of years.
LNG has a Gross Margin (47.15%) which is in line with its industry peers.
LNG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.61% | ||
| PM (TTM) | 21.05% | ||
| GM | 47.15% |
OM growth 3YN/A
OM growth 5Y10.75%
PM growth 3YN/A
PM growth 5Y25.47%
GM growth 3Y90.4%
GM growth 5Y6.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LNG is creating value.
Compared to 1 year ago, LNG has less shares outstanding
Compared to 5 years ago, LNG has less shares outstanding
LNG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.97 indicates that LNG is not a great score, but indicates only limited risk for bankruptcy at the moment.
LNG has a Altman-Z score of 1.97. This is in the better half of the industry: LNG outperforms 66.99% of its industry peers.
LNG has a debt to FCF ratio of 9.59. This is a negative value and a sign of low solvency as LNG would need 9.59 years to pay back of all of its debts.
LNG has a Debt to FCF ratio (9.59) which is comparable to the rest of the industry.
LNG has a Debt/Equity ratio of 3.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.28, LNG is doing worse than 85.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.28 | ||
| Debt/FCF | 9.59 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.77
WACC7.96%
2.3 Liquidity
A Current Ratio of 0.98 indicates that LNG may have some problems paying its short term obligations.
LNG's Current ratio of 0.98 is in line compared to the rest of the industry. LNG outperforms 43.54% of its industry peers.
LNG has a Quick Ratio of 0.98. This is a bad value and indicates that LNG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LNG (0.85) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
LNG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.12%.
LNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.40% yearly.
Looking at the last year, LNG shows a quite strong growth in Revenue. The Revenue has grown by 10.91% in the last year.
The Revenue has been growing by 10.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-9.12%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%90.1%
Revenue 1Y (TTM)10.91%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%42.76%
3.2 Future
The Earnings Per Share is expected to grow by 1.66% on average over the next years.
LNG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.62% yearly.
EPS Next Y6.43%
EPS Next 2Y1.82%
EPS Next 3Y0.83%
EPS Next 5Y1.66%
Revenue Next Year31.61%
Revenue Next 2Y22.93%
Revenue Next 3Y15.31%
Revenue Next 5Y10.62%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LNG is valuated correctly with a Price/Earnings ratio of 12.82.
LNG's Price/Earnings ratio is a bit cheaper when compared to the industry. LNG is cheaper than 60.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, LNG is valued rather cheaply.
A Price/Forward Earnings ratio of 14.89 indicates a correct valuation of LNG.
LNG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, LNG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
LNG's Enterprise Value to EBITDA is on the same level as the industry average.
LNG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.46 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LNG does not grow enough to justify the current Price/Earnings ratio.
LNG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.99
PEG (5Y)0.28
EPS Next 2Y1.82%
EPS Next 3Y0.83%
5. Dividend
5.1 Amount
LNG has a yearly dividend return of 0.90%, which is pretty low.
LNG's Dividend Yield is slightly below the industry average, which is at 6.15.
With a Dividend Yield of 0.90, LNG pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
LNG has been paying a dividend for over 5 years, so it has already some track record.
LNG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
11.25% of the earnings are spent on dividend by LNG. This is a low number and sustainable payout ratio.
DP11.25%
EPS Next 2Y1.82%
EPS Next 3Y0.83%
219.59
-1.95 (-0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change-0.86%
Ins Owners0.58%
Ins Owner Change0.04%
Market Cap48.26B
Revenue(TTM)18.28B
Net Income(TTM)3.85B
Analysts83.57
Price Target272.5 (24.09%)
Short Float %1.81%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend1.79
Dividend Growth(5Y)N/A
DP11.25%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)71.65%
Min EPS beat(2)-42.43%
Max EPS beat(2)185.73%
EPS beat(4)3
Avg EPS beat(4)77.3%
Min EPS beat(4)-42.43%
Max EPS beat(4)185.73%
EPS beat(8)6
Avg EPS beat(8)88.74%
EPS beat(12)9
Avg EPS beat(12)84.01%
EPS beat(16)9
Avg EPS beat(16)-3.9%
Revenue beat(2)2
Avg Revenue beat(2)10.6%
Min Revenue beat(2)3.18%
Max Revenue beat(2)18.01%
Revenue beat(4)3
Avg Revenue beat(4)5.54%
Min Revenue beat(4)-0.08%
Max Revenue beat(4)18.01%
Revenue beat(8)6
Avg Revenue beat(8)3.55%
Revenue beat(12)10
Avg Revenue beat(12)8.65%
Revenue beat(16)13
Avg Revenue beat(16)12.64%
PT rev (1m)0.03%
PT rev (3m)1.32%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)4.49%
EPS NY rev (3m)32.66%
Revenue NQ rev (1m)-5.91%
Revenue NQ rev (3m)-3.6%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 14.89 | ||
| P/S | 2.64 | ||
| P/FCF | 20.46 | ||
| P/OCF | 9.48 | ||
| P/B | 7.2 | ||
| P/tB | 7.2 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)17.13
EY7.8%
EPS(NY)14.75
Fwd EY6.72%
FCF(TTM)10.73
FCFY4.89%
OCF(TTM)23.17
OCFY10.55%
SpS83.2
BVpS30.52
TBVpS30.52
PEG (NY)1.99
PEG (5Y)0.28
Graham Number108.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 57.39% | ||
| ROCE | 16.85% | ||
| ROIC | 14.11% | ||
| ROICexc | 14.7% | ||
| ROICexgc | 14.7% | ||
| OM | 37.61% | ||
| PM (TTM) | 21.05% | ||
| GM | 47.15% | ||
| FCFM | 12.9% |
ROA(3y)11.27%
ROA(5y)5.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.06%
ROIC(5y)N/A
ROICexc(3y)20.8%
ROICexc(5y)N/A
ROICexgc(3y)20.85%
ROICexgc(5y)N/A
ROCE(3y)22.77%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y17.88%
ROICexc growth 3YN/A
ROICexc growth 5Y17.89%
OM growth 3YN/A
OM growth 5Y10.75%
PM growth 3YN/A
PM growth 5Y25.47%
GM growth 3Y90.4%
GM growth 5Y6.04%
F-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.28 | ||
| Debt/FCF | 9.59 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 217.69% | ||
| Cap/Sales | 14.94% | ||
| Interest Coverage | 6.74 | ||
| Cash Conversion | 62.6% | ||
| Profit Quality | 61.29% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.97 |
F-Score6
WACC7.96%
ROIC/WACC1.77
Cap/Depr(3y)174.77%
Cap/Depr(5y)163.44%
Cap/Sales(3y)10.04%
Cap/Sales(5y)11.17%
Profit Quality(3y)256.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.12%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%90.1%
EPS Next Y6.43%
EPS Next 2Y1.82%
EPS Next 3Y0.83%
EPS Next 5Y1.66%
Revenue 1Y (TTM)10.91%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%42.76%
Revenue Next Year31.61%
Revenue Next 2Y22.93%
Revenue Next 3Y15.31%
Revenue Next 5Y10.62%
EBIT growth 1Y-13.3%
EBIT growth 3YN/A
EBIT growth 5Y21.88%
EBIT Next Year29.93%
EBIT Next 3Y11.39%
EBIT Next 5Y7.63%
FCF growth 1Y-72.25%
FCF growth 3Y28.05%
FCF growth 5YN/A
OCF growth 1Y-50.82%
OCF growth 3Y29.76%
OCF growth 5Y24.09%
CHENIERE ENERGY INC / LNG FAQ
Can you provide the ChartMill fundamental rating for CHENIERE ENERGY INC?
ChartMill assigns a fundamental rating of 5 / 10 to LNG.
Can you provide the valuation status for CHENIERE ENERGY INC?
ChartMill assigns a valuation rating of 4 / 10 to CHENIERE ENERGY INC (LNG). This can be considered as Fairly Valued.
Can you provide the profitability details for CHENIERE ENERGY INC?
CHENIERE ENERGY INC (LNG) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for LNG stock?
The Price/Earnings (PE) ratio for CHENIERE ENERGY INC (LNG) is 12.82 and the Price/Book (PB) ratio is 7.2.
How financially healthy is CHENIERE ENERGY INC?
The financial health rating of CHENIERE ENERGY INC (LNG) is 4 / 10.