CHENIERE ENERGY INC (LNG)

US16411R2085 - Common Stock

161.28  +0.14 (+0.09%)

After market: 161.28 0 (0%)

Fundamental Rating

6

Overall LNG gets a fundamental rating of 6 out of 10. We evaluated LNG against 214 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.



8

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.
Each year in the past 5 years LNG had a positive operating cash flow.

1.2 Ratios

LNG has a Return On Assets of 22.94%. This is amongst the best in the industry. LNG outperforms 89.20% of its industry peers.
LNG has a Return On Equity of 195.28%. This is amongst the best in the industry. LNG outperforms 96.24% of its industry peers.
LNG has a Return On Invested Capital of 33.20%. This is amongst the best in the industry. LNG outperforms 94.84% of its industry peers.
Industry RankSector Rank
ROA 22.94%
ROE 195.28%
ROIC 33.2%
ROA(3y)6.81%
ROA(5y)4.4%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

The Profit Margin of LNG (48.45%) is better than 87.32% of its industry peers.
LNG's Profit Margin has improved in the last couple of years.
LNG's Operating Margin of 76.00% is amongst the best of the industry. LNG outperforms 93.43% of its industry peers.
In the last couple of years the Operating Margin of LNG has grown nicely.
The Gross Margin of LNG (80.65%) is better than 88.26% of its industry peers.
LNG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 76%
PM (TTM) 48.45%
GM 80.65%
OM growth 3Y39.17%
OM growth 5Y23.26%
PM growth 3YN/A
PM growth 5Y52.38%
GM growth 3Y24.19%
GM growth 5Y19.61%

6

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
LNG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LNG has an improved debt to assets ratio.

2.2 Solvency

LNG has an Altman-Z score of 2.47. 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.
LNG has a Altman-Z score of 2.47. This is in the better half of the industry: LNG outperforms 67.14% of its industry peers.
LNG has a debt to FCF ratio of 3.84. This is a good value and a sign of high solvency as LNG would need 3.84 years to pay back of all of its debts.
LNG's Debt to FCF ratio of 3.84 is fine compared to the rest of the industry. LNG outperforms 61.03% of its industry peers.
LNG has a Debt/Equity ratio of 4.72. This is a high value indicating a heavy dependency on external financing.
LNG has a Debt to Equity ratio of 4.72. This is amonst the worse of the industry: LNG underperforms 92.02% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.72
Debt/FCF 3.84
Altman-Z 2.47
ROIC/WACC4.94
WACC6.72%

2.3 Liquidity

LNG has a Current Ratio of 1.63. This is a normal value and indicates that LNG is financially healthy and should not expect problems in meeting its short term obligations.
LNG's Current ratio of 1.63 is fine compared to the rest of the industry. LNG outperforms 71.83% of its industry peers.
A Quick Ratio of 1.51 indicates that LNG should not have too much problems paying its short term obligations.
The Quick ratio of LNG (1.51) is better than 72.77% of its industry peers.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.51

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 608.38% over the past year.
The Earnings Per Share has been growing by 83.71% on average over the past years. This is a very strong growth
Looking at the last year, LNG shows a very negative growth in Revenue. The Revenue has decreased by -38.99% in the last year.
LNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.62% yearly.
EPS 1Y (TTM)608.38%
EPS 3YN/A
EPS 5Y83.71%
EPS growth Q2Q-62.93%
Revenue 1Y (TTM)-38.99%
Revenue growth 3Y29.65%
Revenue growth 5Y20.62%
Revenue growth Q2Q-46.91%

3.2 Future

LNG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -22.10% yearly.
LNG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.06% yearly.
EPS Next Y-78.18%
EPS Next 2Y-51.12%
EPS Next 3Y-35.01%
EPS Next 5Y-22.1%
Revenue Next Year-14.75%
Revenue Next 2Y2.93%
Revenue Next 3Y4.77%
Revenue Next 5Y-0.06%

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 decreasing.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 3.97, the valuation of LNG can be described as very cheap.
92.96% of the companies in the same industry are more expensive than LNG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LNG to the average of the S&P500 Index (26.48), we can say LNG is valued rather cheaply.
The Price/Forward Earnings ratio is 18.21, which indicates a rather expensive current valuation of LNG.
61.50% of the companies in the same industry are cheaper than LNG, based on the Price/Forward Earnings ratio.
LNG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 3.97
Fwd PE 18.21

4.2 Price Multiples

82.63% of the companies in the same industry are more expensive than LNG, based on the Enterprise Value to EBITDA ratio.
LNG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LNG is cheaper than 80.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.01
EV/EBITDA 3.47

4.3 Compensation for Growth

LNG has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LNG's earnings are expected to decrease with -35.01% in the coming years.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-51.12%
EPS Next 3Y-35.01%

2

5. Dividend

5.1 Amount

LNG has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.82, LNG is paying slightly less dividend.
With a Dividend Yield of 1.09, LNG pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.09%

5.2 History

LNG has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

LNG pays out 3.98% of its income as dividend. This is a sustainable payout ratio.
DP3.98%
EPS Next 2Y-51.12%
EPS Next 3Y-35.01%

CHENIERE ENERGY INC

NYSE:LNG (3/28/2024, 8:22:16 PM)

After market: 161.28 0 (0%)

161.28

+0.14 (+0.09%)

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 Cap37.85B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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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 RankSector Rank
PE 3.97
Fwd PE 18.21
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)0.05
Profitability
Industry RankSector Rank
ROA 22.94%
ROE 195.28%
ROCE
ROIC
ROICexc
ROICexgc
OM 76%
PM (TTM) 48.45%
GM 80.65%
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 Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 4.72
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.63
Quick Ratio 1.51
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)
Growth
EPS 1Y (TTM)608.38%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-78.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-38.99%
Revenue growth 3Y29.65%
Revenue growth 5Y
Revenue growth 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