CHENIERE ENERGY INC (LNG) Stock Fundamental Analysis
NYSE:LNG - New York Stock Exchange, Inc. - US16411R2085 - Common Stock - Currency: USD
Taking everything into account, LNG scores 5 out of 10 in our fundamental rating. LNG was compared to 213 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.
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.
Each year in the past 5 years LNG had a positive operating cash flow.
1.2 Ratios
LNG has a Return On Assets of 7.13%. This is in the better half of the industry: LNG outperforms 72.77% of its industry peers.
The Return On Equity of LNG (55.60%) is better than 94.84% of its industry peers.
LNG has a Return On Invested Capital of 12.56%. This is amongst the best in the industry. LNG outperforms 85.92% of its industry peers.
LNG had an Average Return On Invested Capital over the past 3 years of 19.06%. This is significantly below the industry average of 25.73%.
The 3 year average ROIC (19.06%) for LNG is well above the current ROIC(12.56%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 55.6% | ||
| ROIC | 12.56% |
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
Looking at the Profit Margin, with a value of 18.37%, LNG is in the better half of the industry, outperforming 69.95% of the companies in the same industry.
In the last couple of years the Profit Margin of LNG has grown nicely.
LNG has a Operating Margin of 35.13%. This is in the better half of the industry: LNG outperforms 77.93% of its industry peers.
In the last couple of years the Operating Margin of LNG has grown nicely.
LNG has a Gross Margin (45.34%) 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 | 35.13% | ||
| PM (TTM) | 18.37% | ||
| GM | 45.34% |
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
LNG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LNG has less shares outstanding
LNG has less shares outstanding than it did 5 years ago.
LNG has a better debt/assets ratio than last year.
2.2 Solvency
LNG has an Altman-Z score of 1.92. 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 1.92. This is in the better half of the industry: LNG outperforms 64.79% of its industry peers.
LNG has a debt to FCF ratio of 7.14. This is a slightly negative value and a sign of low solvency as LNG would need 7.14 years to pay back of all of its debts.
LNG has a Debt to FCF ratio (7.14) which is comparable to the rest of the industry.
LNG has a Debt/Equity ratio of 4.03. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.03, LNG is not doing good in the industry: 88.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.03 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.29
WACC9.77%
2.3 Liquidity
LNG has a Current Ratio of 1.19. This is a normal value and indicates that LNG is financially healthy and should not expect problems in meeting its short term obligations.
LNG has a Current ratio of 1.19. This is comparable to the rest of the industry: LNG outperforms 52.58% of its industry peers.
A Quick Ratio of 1.06 indicates that LNG should not have too much problems paying its short term obligations.
LNG has a Quick ratio (1.06) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
LNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.71%.
Measured over the past years, LNG shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.40% on average per year.
The Revenue has decreased by -2.56% in the past year.
LNG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.05% yearly.
EPS 1Y (TTM)-33.71%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%-26.29%
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%28%
3.2 Future
Based on estimates for the next years, LNG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.51% on average per year.
LNG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.44% yearly.
EPS Next Y-17.81%
EPS Next 2Y0%
EPS Next 3Y-0.69%
EPS Next 5Y9.51%
Revenue Next Year30.87%
Revenue Next 2Y21.84%
Revenue Next 3Y12.3%
Revenue Next 5Y9.44%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.09 indicates a rather expensive valuation of LNG.
Compared to the rest of the industry, the Price/Earnings ratio of LNG is on the same level as its industry peers.
LNG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.42 indicates a correct valuation of LNG.
LNG's Price/Forward Earnings is on the same level as the industry average.
LNG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 16.42 |
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.
Based on the Price/Free Cash Flow ratio, LNG is valued a bit cheaper than 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.37 | ||
| EV/EBITDA | 10.04 |
4.3 Compensation for Growth
LNG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y0%
EPS Next 3Y-0.69%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, LNG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.81, LNG is paying slightly less dividend.
With a Dividend Yield of 0.87, LNG pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
LNG pays out 13.50% of its income as dividend. This is a sustainable payout ratio.
DP13.5%
EPS Next 2Y0%
EPS Next 3Y-0.69%
233.62
+1.96 (+0.85%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners90.25%
Inst Owner Change-0.08%
Ins Owners0.62%
Ins Owner Change-0.19%
Market Cap51.81B
Analysts85.52
Price Target259.64 (11.14%)
Short Float %1.99%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend1.79
Dividend Growth(5Y)N/A
DP13.5%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.33%
Min EPS beat(2)-42.43%
Max EPS beat(2)61.09%
EPS beat(4)3
Avg EPS beat(4)61.17%
Min EPS beat(4)-42.43%
Max EPS beat(4)121.2%
EPS beat(8)6
Avg EPS beat(8)78.65%
EPS beat(12)8
Avg EPS beat(12)67.75%
EPS beat(16)8
Avg EPS beat(16)-30.27%
Revenue beat(2)2
Avg Revenue beat(2)5.38%
Min Revenue beat(2)1.05%
Max Revenue beat(2)9.71%
Revenue beat(4)2
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-8.53%
Max Revenue beat(4)9.71%
Revenue beat(8)6
Avg Revenue beat(8)2.7%
Revenue beat(12)10
Avg Revenue beat(12)9.7%
Revenue beat(16)12
Avg Revenue beat(16)11.72%
PT rev (1m)-0.14%
PT rev (3m)1.96%
EPS NQ rev (1m)-7.58%
EPS NQ rev (3m)-6.47%
EPS NY rev (1m)-7.41%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)6.93%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 16.42 | ||
| P/S | 3.07 | ||
| P/FCF | 16.37 | ||
| P/OCF | 9.64 | ||
| P/B | 9.28 | ||
| P/tB | 9.28 | ||
| EV/EBITDA | 10.04 |
EPS(TTM)13.67
EY5.85%
EPS(NY)14.23
Fwd EY6.09%
FCF(TTM)14.27
FCFY6.11%
OCF(TTM)24.24
OCFY10.38%
SpS76.17
BVpS25.16
TBVpS25.16
PEG (NY)N/A
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 55.6% | ||
| ROCE | 15% | ||
| ROIC | 12.56% | ||
| ROICexc | 13.41% | ||
| ROICexgc | 13.41% | ||
| OM | 35.13% | ||
| PM (TTM) | 18.37% | ||
| GM | 45.34% | ||
| FCFM | 18.73% |
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-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.03 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 179.76% | ||
| Cap/Sales | 13.09% | ||
| Interest Coverage | 6.4 | ||
| Cash Conversion | 75.03% | ||
| Profit Quality | 102% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.92 |
F-Score5
WACC9.77%
ROIC/WACC1.29
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)-33.71%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%-26.29%
EPS Next Y-17.81%
EPS Next 2Y0%
EPS Next 3Y-0.69%
EPS Next 5Y9.51%
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%28%
Revenue Next Year30.87%
Revenue Next 2Y21.84%
Revenue Next 3Y12.3%
Revenue Next 5Y9.44%
EBIT growth 1Y-31.49%
EBIT growth 3YN/A
EBIT growth 5Y21.88%
EBIT Next Year30.19%
EBIT Next 3Y11.34%
EBIT Next 5Y6.42%
FCF growth 1Y-64.54%
FCF growth 3Y28.05%
FCF growth 5YN/A
OCF growth 1Y-52.38%
OCF growth 3Y29.76%
OCF growth 5Y24.09%