CHENIERE ENERGY INC (LNG) Stock Fundamental Analysis
USA - NYSE:LNG - US16411R2085 - Common Stock
232.28 USD
+0.49 (+0.21%)
231.8 USD
-0.48 (-0.21%)
Taking everything into account, LNG scores 5 out of 10 in our fundamental rating. LNG was compared to 211 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LNG had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 8.63%, LNG belongs to the top of the industry, outperforming 81.52% of the companies in the same industry.
LNG has a better Return On Equity (57.39%) than 94.79% of its industry peers.
With an excellent Return On Invested Capital value of 14.11%, LNG belongs to the best of the industry, outperforming 90.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LNG is below the industry average of 21.71%.
The 3 year average ROIC (19.06%) for LNG is well above the current ROIC(14.11%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of LNG (21.05%) is better than 74.41% 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 37.61%, LNG belongs to the best of the industry, outperforming 84.36% of the companies in the same industry.
In the last couple of years the Operating Margin of LNG has grown nicely.
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.
LNG has less shares outstanding than it did 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 2.01. 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.
Looking at the Altman-Z score, with a value of 2.01, LNG is in the better half of the industry, outperforming 66.82% of the companies in the same industry.
The Debt to FCF ratio of LNG is 9.59, which is on the high side as it means it would take LNG, 9.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LNG (9.59) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.28 is on the high side and indicates that LNG has dependencies on debt financing.
With a Debt to Equity ratio value of 3.28, LNG is not doing good in the industry: 85.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.28 | ||
| Debt/FCF | 9.59 | ||
| Altman-Z | 2.01 |
ROIC/WACC1.75
WACC8.08%
2.3 Liquidity
LNG has a Current 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.
LNG has a Current ratio of 0.98. This is comparable to the rest of the industry: LNG outperforms 43.13% of its industry peers.
A Quick Ratio of 0.85 indicates that LNG may have some problems paying its short term obligations.
LNG has a Quick ratio (0.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for LNG have decreased by -9.12% in the last 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 10.91% in the last year.
Measured over the past years, LNG shows a quite strong growth in Revenue. The Revenue has been growing by 10.05% on average per year.
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 11.00% yearly.
EPS Next Y1.86%
EPS Next 2Y1.99%
EPS Next 3Y0.58%
EPS Next 5Y1.66%
Revenue Next Year33.57%
Revenue Next 2Y23.4%
Revenue Next 3Y15.17%
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.
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
LNG is valuated correctly with a Price/Earnings ratio of 13.56.
The rest of the industry has a similar Price/Earnings ratio as LNG.
The average S&P500 Price/Earnings ratio is at 27.86. LNG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 15.69, which 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.
The average S&P500 Price/Forward Earnings ratio is at 23.32. LNG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LNG.
LNG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.64 | ||
| EV/EBITDA | 8.84 |
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)7.28
PEG (5Y)0.3
EPS Next 2Y1.99%
EPS Next 3Y0.58%
5. Dividend
5.1 Amount
LNG has a yearly dividend return of 0.84%, which is pretty low.
LNG's Dividend Yield is slightly below the industry average, which is at 5.98.
Compared to an average S&P500 Dividend Yield of 2.41, LNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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 2Y1.99%
EPS Next 3Y0.58%
232.28
+0.49 (+0.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change-0.23%
Ins Owners0.58%
Ins Owner Change0.04%
Market Cap51.05B
Analysts83.57
Price Target272.41 (17.28%)
Short Float %1.94%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)0.24%
PT rev (3m)3.07%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)6.92%
EPS NY rev (1m)12.03%
EPS NY rev (3m)25.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.06%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 15.69 | ||
| P/S | 2.79 | ||
| P/FCF | 21.64 | ||
| P/OCF | 10.03 | ||
| P/B | 7.61 | ||
| P/tB | 7.61 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)17.13
EY7.37%
EPS(NY)14.8
Fwd EY6.37%
FCF(TTM)10.73
FCFY4.62%
OCF(TTM)23.17
OCFY9.97%
SpS83.2
BVpS30.52
TBVpS30.52
PEG (NY)7.28
PEG (5Y)0.3
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
ROICexcg growth 3YN/A
ROICexcg 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 | 2.01 |
F-Score6
WACC8.08%
ROIC/WACC1.75
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 Y1.86%
EPS Next 2Y1.99%
EPS Next 3Y0.58%
EPS Next 5Y1.66%
Revenue 1Y (TTM)10.91%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%42.76%
Revenue Next Year33.57%
Revenue Next 2Y23.4%
Revenue Next 3Y15.17%
Revenue Next 5Y11%
EBIT growth 1Y-13.3%
EBIT growth 3YN/A
EBIT growth 5Y21.88%
EBIT Next Year29.93%
EBIT Next 3Y11.39%
EBIT Next 5Y7.59%
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%