CHENIERE ENERGY INC (LNG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LNG - US16411R2085 - Common Stock
208.46 USD
+2.67 (+1.3%)
208.99 USD
+0.53 (+0.25%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LNG is not valued too expensively and it also shows a decent 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.
In multiple years LNG reported negative net income over the last 5 years.
Each year in the past 5 years LNG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.88%, LNG belongs to the top of the industry, outperforming 85.71% 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.
LNG has a better Return On Invested Capital (14.26%) than 92.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LNG is below the industry average of 21.41%.
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
LNG has a better Profit Margin (21.12%) than 77.14% of its industry peers.
In the last couple of years the Profit Margin of LNG has grown nicely.
With an excellent Operating Margin value of 37.16%, LNG belongs to the best of the industry, outperforming 86.19% of the companies in the same industry.
LNG's Operating Margin has improved in the last couple of years.
LNG has a Gross Margin of 46.44%. This is comparable to the rest of the industry: LNG outperforms 54.76% of its industry peers.
In the last couple of years the Gross Margin of LNG has grown nicely.
| 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.
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 1.95 indicates that LNG is not a great score, but indicates only limited risk for bankruptcy at the moment.
LNG's Altman-Z score of 1.95 is fine compared to the rest of the industry. LNG outperforms 66.67% 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.
Looking at the Debt to FCF ratio, with a value of 10.15, LNG is in line with its industry, outperforming 54.29% of the companies in the same industry.
LNG has a Debt/Equity ratio of 3.25. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.25, LNG is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.25 | ||
| Debt/FCF | 10.15 | ||
| Altman-Z | 1.95 |
ROIC/WACC1.78
WACC8.03%
2.3 Liquidity
LNG has a Current Ratio of 0.94. 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 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.
With a Quick ratio value of 0.81, LNG perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.97% over the past year.
The Earnings Per Share has been growing by 45.40% on average over the past years. This is a very strong growth
Looking at the last year, LNG shows a quite strong growth in Revenue. The Revenue has grown by 17.85% in the last year.
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
Based on estimates for the next years, LNG will show a small growth in Earnings Per Share. The EPS will grow by 1.93% on average per year.
The Revenue is expected to grow by 10.62% on average over the next years. This is quite good.
EPS Next Y10.03%
EPS Next 2Y1.98%
EPS Next 3Y0.96%
EPS Next 5Y1.93%
Revenue Next Year31.05%
Revenue Next 2Y22.49%
Revenue Next 3Y15.34%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.61, the valuation of LNG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LNG indicates a somewhat cheap valuation: LNG is cheaper than 70.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, LNG is valued rather cheaply.
A Price/Forward Earnings ratio of 14.09 indicates a correct valuation of LNG.
LNG's Price/Forward Earnings is on the same level as the industry average.
LNG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
LNG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as LNG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.62 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
LNG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LNG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)0.26
EPS Next 2Y1.98%
EPS Next 3Y0.96%
5. Dividend
5.1 Amount
LNG has a Yearly Dividend Yield of 1.07%.
LNG's Dividend Yield is slightly below the industry average, which is at 5.90.
Compared to an average S&P500 Dividend Yield of 2.40, LNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
11.09% of the earnings are spent on dividend by LNG. This is a low number and sustainable payout ratio.
DP11.09%
EPS Next 2Y1.98%
EPS Next 3Y0.96%
208.46
+2.67 (+1.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change-1.04%
Ins Owners0.58%
Ins Owner Change0.01%
Market Cap45.81B
Revenue(TTM)18.96B
Net Income(TTM)4.00B
Analysts83.57
Price Target273.77 (31.33%)
Short Float %1.92%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)0.46%
PT rev (3m)0.74%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)7.58%
EPS NY rev (1m)3.38%
EPS NY rev (3m)21.01%
Revenue NQ rev (1m)-3.56%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 14.09 | ||
| P/S | 2.42 | ||
| P/FCF | 20.62 | ||
| P/OCF | 8.94 | ||
| P/B | 6.79 | ||
| P/tB | 6.79 | ||
| EV/EBITDA | 8 |
EPS(TTM)17.95
EY8.61%
EPS(NY)14.8
Fwd EY7.1%
FCF(TTM)10.11
FCFY4.85%
OCF(TTM)23.32
OCFY11.19%
SpS86.28
BVpS30.71
TBVpS30.71
PEG (NY)1.16
PEG (5Y)0.26
Graham Number111.37
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 | 1.95 |
F-Score7
WACC8.03%
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 Y10.03%
EPS Next 2Y1.98%
EPS Next 3Y0.96%
EPS Next 5Y1.93%
Revenue 1Y (TTM)17.85%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%18.02%
Revenue Next Year31.05%
Revenue Next 2Y22.49%
Revenue Next 3Y15.34%
Revenue Next 5Y10.62%
EBIT growth 1Y3.27%
EBIT growth 3YN/A
EBIT growth 5Y21.88%
EBIT Next Year29.93%
EBIT Next 3Y11.39%
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 5 / 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 11.61 and the Price/Book (PB) ratio is 6.79.
How financially healthy is CHENIERE ENERGY INC?
The financial health rating of CHENIERE ENERGY INC (LNG) is 4 / 10.