CHENIERE ENERGY INC (LNG) Stock Fundamental Analysis
USA - NYSE:LNG - US16411R2085 - Common Stock
219.59 USD
-1.95 (-0.88%)
219.75 USD
+0.16 (+0.07%)
Overall LNG gets a fundamental rating of 5 out of 10. We evaluated LNG against 209 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 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
Looking at the Return On Assets, with a value of 8.63%, LNG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
With an excellent Return On Equity value of 57.39%, LNG belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.11%, LNG belongs to the best of the industry, outperforming 90.43% 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 21.70%.
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
LNG's Profit Margin of 21.05% is fine compared to the rest of the industry. LNG outperforms 74.64% of its industry peers.
In the last couple of years the Profit Margin of LNG has grown nicely.
The Operating Margin of LNG (37.61%) is better than 85.17% of its industry peers.
LNG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 47.15%, LNG perfoms like the industry average, outperforming 55.50% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
An Altman-Z score of 1.97 indicates that LNG is not a great score, but indicates only limited risk for bankruptcy at the moment.
LNG's Altman-Z score of 1.97 is fine compared to the rest of the industry. LNG outperforms 66.99% of its industry peers.
LNG has a debt to FCF ratio of 9.59. This is a negative value and a sign of low solvency as LNG would need 9.59 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.59, LNG perfoms like the industry average, outperforming 53.11% of the companies in the same industry.
A Debt/Equity ratio of 3.28 is on the high side and indicates that LNG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.28, LNG is doing worse than 85.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.28 | ||
| Debt/FCF | 9.59 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.78
WACC7.93%
2.3 Liquidity
A Current Ratio of 0.98 indicates that LNG may have some problems paying its short term obligations.
LNG has a Current ratio (0.98) which is in line with its industry peers.
LNG has a Quick 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 Quick ratio (0.85) which is comparable to the rest of the industry.
| 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.
LNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.40% yearly.
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
Based on estimates for the next years, LNG will show a small growth in Earnings Per Share. The EPS will grow by 1.66% on average per year.
Based on estimates for the next years, LNG will show a quite strong growth in Revenue. The Revenue will grow by 10.62% on average per year.
EPS Next Y6.43%
EPS Next 2Y1.82%
EPS Next 3Y0.83%
EPS Next 5Y1.66%
Revenue Next Year31.61%
Revenue Next 2Y22.93%
Revenue Next 3Y15.31%
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
A Price/Earnings ratio of 12.82 indicates a correct valuation of LNG.
60.29% of the companies in the same industry are more expensive than LNG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.89. LNG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 14.89, LNG is valued correctly.
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 22.99. LNG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNG is on the same level as its industry peers.
LNG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.46 | ||
| EV/EBITDA | 8.51 |
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.
The excellent profitability rating of LNG may justify a higher PE ratio.
PEG (NY)1.99
PEG (5Y)0.28
EPS Next 2Y1.82%
EPS Next 3Y0.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, LNG is not a good candidate for dividend investing.
LNG's Dividend Yield is slightly below the industry average, which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.31, LNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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 2Y1.82%
EPS Next 3Y0.83%
219.59
-1.95 (-0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change-0.86%
Ins Owners0.58%
Ins Owner Change0.04%
Market Cap48.26B
Revenue(TTM)18.28B
Net Income(TTM)3.85B
Analysts83.57
Price Target272.5 (24.09%)
Short Float %1.81%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)0.03%
PT rev (3m)1.32%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)4.49%
EPS NY rev (3m)32.66%
Revenue NQ rev (1m)-5.91%
Revenue NQ rev (3m)-3.6%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 14.89 | ||
| P/S | 2.64 | ||
| P/FCF | 20.46 | ||
| P/OCF | 9.48 | ||
| P/B | 7.2 | ||
| P/tB | 7.2 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)17.13
EY7.8%
EPS(NY)14.75
Fwd EY6.72%
FCF(TTM)10.73
FCFY4.89%
OCF(TTM)23.17
OCFY10.55%
SpS83.2
BVpS30.52
TBVpS30.52
PEG (NY)1.99
PEG (5Y)0.28
Graham Number108.46
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
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-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 | 1.97 |
F-Score6
WACC7.93%
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)-9.12%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%90.1%
EPS Next Y6.43%
EPS Next 2Y1.82%
EPS Next 3Y0.83%
EPS Next 5Y1.66%
Revenue 1Y (TTM)10.91%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%42.76%
Revenue Next Year31.61%
Revenue Next 2Y22.93%
Revenue Next 3Y15.31%
Revenue Next 5Y10.62%
EBIT growth 1Y-13.3%
EBIT growth 3YN/A
EBIT growth 5Y21.88%
EBIT Next Year29.93%
EBIT Next 3Y11.39%
EBIT Next 5Y7.63%
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%
CHENIERE ENERGY INC / LNG FAQ
Can you provide the ChartMill fundamental rating for CHENIERE ENERGY INC?
ChartMill assigns a fundamental rating of 5 / 10 to LNG.
Can you provide the valuation status for CHENIERE ENERGY INC?
ChartMill assigns a valuation rating of 4 / 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 12.82 and the Price/Book (PB) ratio is 7.2.
How financially healthy is CHENIERE ENERGY INC?
The financial health rating of CHENIERE ENERGY INC (LNG) is 4 / 10.