When you look at NYSE:LNG, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Uncover the potential of CHENIERE ENERGY INC (NYSE:LNG) as our stock screener's choice for an undervalued stock. NYSE:LNG maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Unpacking NYSE:LNG's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:LNG boasts a 8 out of 10:

• Based on the Price/Earnings ratio of 3.08, the valuation of LNG can be described as very cheap.
• 92.56% of the companies in the same industry are more expensive than LNG, based on the Price/Earnings ratio.
• When comparing the Price/Earnings ratio of LNG to the average of the S&P500 Index (26.29), we can say LNG is valued rather cheaply.
• LNG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNG indicates a rather cheap valuation: LNG is cheaper than 87.44% of the companies listed in the same industry.
• 81.40% of the companies in the same industry are more expensive than LNG, based on the Price/Free Cash Flow ratio.
• LNG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• LNG has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as LNG's earnings are expected to grow with 21.71% in the coming years.

Profitability Assessment of NYSE:LNG

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:LNG, the assigned 6 is a significant indicator of profitability:

• LNG's Return On Assets of 29.82% is amongst the best of the industry. LNG outperforms 90.23% of its industry peers.
• With an excellent Return On Equity value of 300.22%, LNG belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
• LNG's Return On Invested Capital of 44.37% is amongst the best of the industry. LNG outperforms 95.81% of its industry peers.
• LNG has a Profit Margin of 50.46%. This is amongst the best in the industry. LNG outperforms 86.51% of its industry peers.
• The Operating Margin of LNG (80.22%) is better than 94.42% of its industry peers.
• Looking at the Gross Margin, with a value of 83.93%, LNG belongs to the top of the industry, outperforming 89.77% of the companies in the same industry.

Health Assessment of NYSE:LNG

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:LNG scores a 6 out of 10:

• With a decent Altman-Z score value of 2.91, LNG is doing good in the industry, outperforming 73.49% of the companies in the same industry.
• The Debt to FCF ratio of LNG is 3.14, which is a good value as it means it would take LNG, 3.14 years of fcf income to pay off all of its debts.
• LNG has a better Debt to FCF ratio (3.14) than 62.33% of its industry peers.
• LNG has a better Current ratio (1.54) than 64.19% of its industry peers.
• The Quick ratio of LNG (1.43) is better than 67.44% of its industry peers.

ChartMill's Evaluation of Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:LNG has achieved a 5 out of 10:

• The Earnings Per Share has grown by an impressive 430.84% over the past year.
• LNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.80% yearly.
• Measured over the past years, LNG shows a very strong growth in Revenue. The Revenue has been growing by 42.94% on average per year.
• Based on estimates for the next years, LNG will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.12% on average per year.

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For an up to date full fundamental analysis you can check the fundamental report of LNG

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.