CHENIERE ENERGY INC (LNG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LNG - US16411R2085 - Common Stock
212.71 USD
+4.67 (+2.24%)
Overall LNG gets a fundamental rating of 6 out of 10. We evaluated LNG against 207 industry peers in the Oil, Gas & Consumable Fuels industry. LNG has an excellent profitability rating, but 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.
- In multiple years LNG reported negative net income over the last 5 years.
- LNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LNG has a better Return On Assets (8.88%) than 87.44% of its industry peers.
- LNG's Return On Equity of 59.34% is amongst the best of the industry. LNG outperforms 94.69% of its industry peers.
- The Return On Invested Capital of LNG (14.26%) is better than 92.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LNG is below the industry average of 21.94%.
- The last Return On Invested Capital (14.26%) for LNG is well below the 3 year average (19.06%), which needs to be investigated, but indicates that LNG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.88% | ||
| ROE | 59.34% | ||
| ROIC | 14.26% |
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 (21.12%) is better than 78.26% of its industry peers.
- LNG's Profit Margin has improved in the last couple of years.
- The Operating Margin of LNG (37.16%) is better than 87.44% of its industry peers.
- LNG's Operating Margin has improved in the last couple of years.
- LNG has a Gross Margin (46.44%) 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 | 37.16% | ||
| PM (TTM) | 21.12% | ||
| GM | 46.44% |
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.
- The number of shares outstanding for LNG has been reduced compared to 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 1.94. 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 better Altman-Z score (1.94) than 64.25% of its industry peers.
- The Debt to FCF ratio of LNG is 10.15, which is on the high side as it means it would take LNG, 10.15 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.15, LNG is in line with its industry, outperforming 54.59% of the companies in the same industry.
- A Debt/Equity ratio of 3.25 is on the high side and indicates that LNG has dependencies on debt financing.
- LNG has a Debt to Equity ratio of 3.25. This is amonst the worse of the industry: LNG underperforms 85.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.25 | ||
| Debt/FCF | 10.15 | ||
| Altman-Z | 1.94 |
ROIC/WACC1.75
WACC8.16%
2.3 Liquidity
- LNG has a Current Ratio of 0.94. 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 (0.94) which is in line with its industry peers.
- A Quick Ratio of 0.81 indicates that LNG may have some problems paying its short term obligations.
- LNG's Quick ratio of 0.81 is in line compared to the rest of the industry. LNG outperforms 41.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- LNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.97%, which is quite good.
- 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 grown by 17.85% in the past year. This is quite good.
- 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)13.97%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%20.87%
Revenue 1Y (TTM)17.85%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%18.02%
3.2 Future
- The Earnings Per Share is expected to grow by 1.93% 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 Y18.64%
EPS Next 2Y0.92%
EPS Next 3Y-0.01%
EPS Next 5Y1.93%
Revenue Next Year29.51%
Revenue Next 2Y21.11%
Revenue Next 3Y15.38%
Revenue Next 5Y11%
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
- With a Price/Earnings ratio of 11.85, the valuation of LNG can be described as very reasonable.
- Based on the Price/Earnings ratio, LNG is valued a bit cheaper than the industry average as 76.81% of the companies are valued more expensively.
- LNG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 14.68, which indicates a correct valuation of LNG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LNG indicates a somewhat cheap valuation: LNG is cheaper than 60.39% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. LNG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as LNG.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LNG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.6 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of LNG may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)0.26
EPS Next 2Y0.92%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.07%, LNG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.73, LNG has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, LNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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 11.09% of its income as dividend. This is a sustainable payout ratio.
DP11.09%
EPS Next 2Y0.92%
EPS Next 3Y-0.01%
CHENIERE ENERGY INC / LNG FAQ
Can you provide the ChartMill fundamental rating for CHENIERE ENERGY INC?
ChartMill assigns a fundamental rating of 6 / 10 to LNG.
What is the valuation status of CHENIERE ENERGY INC (LNG) stock?
ChartMill assigns a valuation rating of 6 / 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.
What is the financial health of CHENIERE ENERGY INC (LNG) stock?
The financial health rating of CHENIERE ENERGY INC (LNG) is 4 / 10.
How sustainable is the dividend of CHENIERE ENERGY INC (LNG) stock?
The dividend rating of CHENIERE ENERGY INC (LNG) is 3 / 10 and the dividend payout ratio is 11.09%.