CHENIERE ENERGY INC (LNG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LNG - US16411R2085 - Common Stock
190.33 USD
-1.37 (-0.71%)
190.33 USD
0 (0%)
Overall LNG gets a fundamental rating of 6 out of 10. We evaluated LNG against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While LNG has a great profitability rating, 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
In the past year LNG was profitable.
LNG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LNG reported negative net income in multiple years.
In the past 5 years LNG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.88%, LNG belongs to the best of the industry, outperforming 87.62% of the companies in the same industry.
LNG has a Return On Equity of 59.34%. This is amongst the best in the industry. LNG outperforms 95.24% of its industry peers.
With an excellent Return On Invested Capital value of 14.26%, LNG belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
LNG had an Average Return On Invested Capital over the past 3 years of 19.06%. This is below the industry average of 21.09%.
The last Return On Invested Capital (14.26%) 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 | 8.88% | ||
| ROE | 59.34% | ||
| ROIC | 14.26% |
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
The Profit Margin of LNG (21.12%) is better than 78.10% of its industry peers.
LNG's Profit Margin has improved in the last couple of years.
LNG has a better Operating Margin (37.16%) than 86.67% of its industry peers.
In the last couple of years the Operating Margin of LNG has grown nicely.
LNG has a Gross Margin of 46.44%. This is comparable to the rest of the industry: LNG outperforms 55.24% of its industry peers.
LNG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.16% | ||
| PM (TTM) | 21.12% | ||
| GM | 46.44% |
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
LNG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for LNG has been reduced compared to 1 year ago.
LNG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LNG has been reduced compared to a year ago.
2.2 Solvency
LNG has an Altman-Z score of 1.88. This is not the best score and indicates that LNG is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of LNG (1.88) is better than 66.19% of its industry peers.
LNG has a debt to FCF ratio of 10.15. This is a negative value and a sign of low solvency as LNG would need 10.15 years to pay back of all of its debts.
LNG has a Debt to FCF ratio (10.15) which is in line with its industry peers.
A Debt/Equity ratio of 3.25 is on the high side and indicates that LNG has dependencies on debt financing.
LNG has a worse Debt to Equity ratio (3.25) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.25 | ||
| Debt/FCF | 10.15 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.78
WACC8.01%
2.3 Liquidity
A Current Ratio of 0.94 indicates that LNG may have some problems paying its short term obligations.
The Current ratio of LNG (0.94) is comparable to the rest of the industry.
A Quick Ratio of 0.81 indicates that LNG may have some problems paying its short term obligations.
LNG has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
LNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.97%, which is quite good.
The Earnings Per Share has been growing by 45.40% on average over the past years. This is a very strong growth
The Revenue has grown by 17.85% in the past year. This is quite good.
LNG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.05% yearly.
EPS 1Y (TTM)13.97%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%20.87%
Revenue 1Y (TTM)17.85%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%18.02%
3.2 Future
The Earnings Per Share is expected to grow by 1.93% on average over the next years.
The Revenue is expected to grow by 11.00% on average over the next years. This is quite good.
EPS Next Y18.14%
EPS Next 2Y1.72%
EPS Next 3Y0.71%
EPS Next 5Y1.93%
Revenue Next Year29.69%
Revenue Next 2Y21.44%
Revenue Next 3Y15.18%
Revenue Next 5Y11%
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 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 reasonably with a Price/Earnings ratio of 10.60.
LNG's Price/Earnings ratio is a bit cheaper when compared to the industry. LNG is cheaper than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of LNG to the average of the S&P500 Index (26.59), we can say LNG is valued rather cheaply.
A Price/Forward Earnings ratio of 12.93 indicates a correct valuation of LNG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LNG to the average of the S&P500 Index (24.03), we can say LNG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 12.93 |
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 | 18.44 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LNG may justify a higher PE ratio.
PEG (NY)0.58
PEG (5Y)0.23
EPS Next 2Y1.72%
EPS Next 3Y0.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, LNG has a reasonable but not impressive dividend return.
In the last 3 months the price of LNG has falen by -20.17%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LNG's Dividend Yield is comparable with the industry average which is at 3.95.
Compared to the average S&P500 Dividend Yield of 1.88, LNG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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
LNG pays out 11.09% of its income as dividend. This is a sustainable payout ratio.
DP11.09%
EPS Next 2Y1.72%
EPS Next 3Y0.71%
190.33
-1.37 (-0.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.84%
Inst Owner Change-1.02%
Ins Owners0.59%
Ins Owner Change0.05%
Market Cap40.96B
Revenue(TTM)18.96B
Net Income(TTM)4.00B
Analysts83.57
Price TargetN/A
Short Float %2.26%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.79
Dividend Growth(5Y)N/A
DP11.09%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)122.92%
Min EPS beat(2)60.11%
Max EPS beat(2)185.73%
EPS beat(4)3
Avg EPS beat(4)66.13%
Min EPS beat(4)-42.43%
Max EPS beat(4)185.73%
EPS beat(8)6
Avg EPS beat(8)74.38%
EPS beat(12)10
Avg EPS beat(12)111.74%
EPS beat(16)10
Avg EPS beat(16)27.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-3.94%
Max Revenue beat(2)3.18%
Revenue beat(4)3
Avg Revenue beat(4)4.58%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)18.01%
Revenue beat(8)5
Avg Revenue beat(8)2.8%
Revenue beat(12)9
Avg Revenue beat(12)7%
Revenue beat(16)13
Avg Revenue beat(16)13.1%
PT rev (1m)-0.06%
PT rev (3m)0.54%
EPS NQ rev (1m)3.45%
EPS NQ rev (3m)9.27%
EPS NY rev (1m)7.37%
EPS NY rev (3m)29.93%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)-7.25%
Revenue NY rev (1m)-1.04%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 12.93 | ||
| P/S | 2.16 | ||
| P/FCF | 18.44 | ||
| P/OCF | 7.99 | ||
| P/B | 6.07 | ||
| P/tB | 6.07 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)17.95
EY9.43%
EPS(NY)14.72
Fwd EY7.74%
FCF(TTM)10.32
FCFY5.42%
OCF(TTM)23.81
OCFY12.51%
SpS88.1
BVpS31.36
TBVpS31.36
PEG (NY)0.58
PEG (5Y)0.23
Graham Number112.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.88% | ||
| ROE | 59.34% | ||
| ROCE | 17.04% | ||
| ROIC | 14.26% | ||
| ROICexc | 14.64% | ||
| ROICexgc | 14.64% | ||
| OM | 37.16% | ||
| PM (TTM) | 21.12% | ||
| GM | 46.44% | ||
| FCFM | 11.72% |
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-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.25 | ||
| Debt/FCF | 10.15 | ||
| Debt/EBITDA | 2.63 | ||
| Cap/Depr | 225.56% | ||
| Cap/Sales | 15.31% | ||
| Interest Coverage | 7.9 | ||
| Cash Conversion | 61.5% | ||
| Profit Quality | 55.48% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.88 |
F-Score7
WACC8.01%
ROIC/WACC1.78
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)13.97%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%20.87%
EPS Next Y18.14%
EPS Next 2Y1.72%
EPS Next 3Y0.71%
EPS Next 5Y1.93%
Revenue 1Y (TTM)17.85%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%18.02%
Revenue Next Year29.69%
Revenue Next 2Y21.44%
Revenue Next 3Y15.18%
Revenue Next 5Y11%
EBIT growth 1Y3.27%
EBIT growth 3YN/A
EBIT growth 5Y21.88%
EBIT Next Year29.96%
EBIT Next 3Y11.38%
EBIT Next 5Y7.72%
FCF growth 1Y-71.21%
FCF growth 3Y28.05%
FCF growth 5YN/A
OCF growth 1Y-46.89%
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 6 / 10 to LNG.
Can you provide the valuation status for CHENIERE ENERGY INC?
ChartMill assigns a valuation rating of 6 / 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 10.6 and the Price/Book (PB) ratio is 6.07.
How financially healthy is CHENIERE ENERGY INC?
The financial health rating of CHENIERE ENERGY INC (LNG) is 4 / 10.