CHENIERE ENERGY INC (LNG)
US16411R2085 - Common Stock
LNG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While LNG has a great profitability rating, there are quite some 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.
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.
In the past 5 years LNG always reported a positive cash flow from operatings.
1.2 Ratios
LNG has a better Return On Assets (11.53%) than 76.67% of its industry peers.
The Return On Equity of LNG (116.45%) is better than 96.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.82%, LNG belongs to the top of the industry, outperforming 89.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 116.45% | ||
| ROIC | 19.82% |
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 (28.55%) is better than 75.24% of its industry peers.
LNG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 49.97%, LNG belongs to the best of the industry, outperforming 87.14% of the companies in the same industry.
LNG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 64.23%, LNG is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
LNG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.97% | ||
| PM (TTM) | 28.55% | ||
| GM | 64.23% |
OM growth 3Y39.17%
OM growth 5Y23.26%
PM growth 3YN/A
PM growth 5Y52.38%
GM growth 3Y24.19%
GM growth 5Y19.61%
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.
LNG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LNG has less shares outstanding
LNG has a better debt/assets ratio than last year.
2.2 Solvency
LNG has an Altman-Z score of 1.86. 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 1.86. This is comparable to the rest of the industry: LNG outperforms 56.19% of its industry peers.
The Debt to FCF ratio of LNG is 6.10, which is on the high side as it means it would take LNG, 6.10 years of fcf income to pay off all of its debts.
LNG has a Debt to FCF ratio of 6.10. This is comparable to the rest of the industry: LNG outperforms 55.71% of its industry peers.
LNG has a Debt/Equity ratio of 5.14. This is a high value indicating a heavy dependency on external financing.
LNG has a worse Debt to Equity ratio (5.14) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.14 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 1.86 |
ROIC/WACC2.89
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.98 indicates that LNG may have some problems paying its short term obligations.
With a Current ratio value of 0.98, LNG is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.92 indicates that LNG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.92, LNG is in line with its industry, outperforming 43.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
LNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.99%.
Measured over the past years, LNG shows a very strong growth in Earnings Per Share. The EPS has been growing by 83.71% on average per year.
LNG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -47.86%.
The Revenue has been growing by 20.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-33.99%
EPS 3YN/A
EPS 5Y83.71%
EPS Q2Q%-90.36%
Revenue 1Y (TTM)-47.86%
Revenue growth 3Y29.65%
Revenue growth 5Y20.62%
Sales Q2Q%-41.82%
3.2 Future
Based on estimates for the next years, LNG will show a very negative growth in Earnings Per Share. The EPS will decrease by -21.80% on average per year.
The Revenue is expected to grow by 1.02% on average over the next years.
EPS Next Y-79.9%
EPS Next 2Y-49.95%
EPS Next 3Y-31.94%
EPS Next 5Y-21.8%
Revenue Next Year-21.03%
Revenue Next 2Y-0.77%
Revenue Next 3Y5.71%
Revenue Next 5Y1.02%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.57, the valuation of LNG can be described as reasonable.
Based on the Price/Earnings ratio, LNG is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LNG to the average of the S&P500 Index (24.41), we can say LNG is valued rather cheaply.
The Price/Forward Earnings ratio is 17.38, which indicates a rather expensive current valuation of LNG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LNG indicates a slightly more expensive valuation: LNG is more expensive than 68.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. LNG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 17.38 |
4.2 Price Multiples
LNG's Enterprise Value to EBITDA is on the same level as the industry average.
66.67% of the companies in the same industry are more expensive than LNG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
The decent profitability rating of LNG may justify a higher PE ratio.
A cheap valuation may be justified as LNG's earnings are expected to decrease with -31.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-49.95%
EPS Next 3Y-31.94%
5. Dividend
5.1 Amount
LNG has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 5.93, LNG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.30, LNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
8.06% of the earnings are spent on dividend by LNG. This is a low number and sustainable payout ratio.
DP8.06%
EPS Next 2Y-49.95%
EPS Next 3Y-31.94%
CHENIERE ENERGY INC
NYSE:LNG (7/26/2024, 7:04:00 PM)
After market: 177.72 +1 (+0.57%)176.72
+0.37 (+0.21%)
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 Cap40.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 17.38 | ||
| 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)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.53% | ||
| ROE | 116.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 49.97% | ||
| PM (TTM) | 28.55% | ||
| GM | 64.23% | ||
| 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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.92 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-33.99%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-79.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-47.86%
Revenue growth 3Y29.65%
Revenue growth 5Y
Sales 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