CHENIERE ENERGY INC (LNG)

US16411R2085 - Common Stock

160.46  -1.51 (-0.93%)

After market: 161.5 +1.04 (+0.65%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to LNG. LNG was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While LNG has a great profitability rating, there are some minor concerns on its financial health. LNG has a correct valuation and a medium 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.
LNG had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of LNG (22.94%) is better than 89.67% of its industry peers.
Looking at the Return On Equity, with a value of 195.28%, LNG belongs to the top of the industry, outperforming 96.24% of the companies in the same industry.
LNG has a better Return On Invested Capital (33.20%) than 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

LNG has a better Profit Margin (48.45%) 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.
LNG's Operating Margin has improved in the last couple of years.
LNG has a Gross Margin of 80.65%. This is amongst the best in the industry. LNG outperforms 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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LNG is creating value.
Compared to 1 year ago, LNG has less shares outstanding
The number of shares outstanding for LNG has been reduced compared to 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 2.48. 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.
With a decent Altman-Z score value of 2.48, LNG is doing good in the industry, outperforming 64.79% of the companies in the same industry.
The Debt to FCF ratio of LNG is 3.84, which is a good value as it means it would take LNG, 3.84 years of fcf income to pay off all of its debts.
LNG's Debt to FCF ratio of 3.84 is fine compared to the rest of the industry. LNG outperforms 60.56% 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 2.48
ROIC/WACC4.76
WACC6.97%

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 70.89% of its industry peers.
LNG has a Quick Ratio of 1.51. This is a normal value and indicates that LNG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.51, LNG is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
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.
LNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.71% yearly.
LNG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -38.99%.
The Revenue has been growing by 20.62% on average over the past years. This is a very strong growth!
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

Based on estimates for the next years, LNG will show a very negative growth in Earnings Per Share. The EPS will decrease by -22.10% on average per year.
The Revenue is expected to decrease by -0.06% on average over the next years.
EPS Next Y-78.13%
EPS Next 2Y-50.26%
EPS Next 3Y-34.38%
EPS Next 5Y-22.1%
Revenue Next Year-18.87%
Revenue Next 2Y1.09%
Revenue Next 3Y4.87%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 3.95 indicates a rather cheap valuation of LNG.
LNG's Price/Earnings ratio is rather cheap when compared to the industry. LNG is cheaper than 92.02% of the companies in the same industry.
LNG is valuated cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.07 indicates a rather expensive valuation of LNG.
LNG's Price/Forward Earnings ratio is in line with the industry average.
LNG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.40.
Industry RankSector Rank
PE 3.95
Fwd PE 18.07

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LNG is valued cheaper than 84.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LNG is valued cheaply inside the industry as 80.28% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.98
EV/EBITDA 3.48

4.3 Compensation for Growth

The excellent profitability rating of LNG may justify a higher PE ratio.
LNG's earnings are expected to decrease with -34.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-50.26%
EPS Next 3Y-34.38%

2

5. Dividend

5.1 Amount

LNG has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
LNG's Dividend Yield is slightly below the industry average, which is at 5.79.
With a Dividend Yield of 1.08, LNG pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector Rank
Dividend Yield 1.08%

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-50.26%
EPS Next 3Y-34.38%

CHENIERE ENERGY INC

NYSE:LNG (4/22/2024, 7:13:06 PM)

After market: 161.5 +1.04 (+0.65%)

160.46

-1.51 (-0.93%)

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 Cap37.66B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.08%
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)
Max EPS beat(4)
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)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 RankSector Rank
PE 3.95
Fwd PE 18.07
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-78.13%
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