FLEX LNG LTD (FLNG.OL) Stock Fundamental Analysis
OSL:FLNG - Euronext Oslo - BMG359472021 - Common Stock - Currency: NOK
FLNG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Oil, Gas & Consumable Fuels industry. While FLNG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FLNG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FLNG had positive earnings in the past year.
FLNG had a positive operating cash flow in the past year.
In the past 5 years FLNG has always been profitable.
FLNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FLNG (4.41%) is comparable to the rest of the industry.
FLNG has a Return On Equity of 14.59%. This is comparable to the rest of the industry: FLNG outperforms 57.14% of its industry peers.
FLNG has a Return On Invested Capital (6.07%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FLNG is significantly below the industry average of 11.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 14.59% | ||
| ROIC | 6.07% |
ROA(3y)5.29%
ROA(5y)4.5%
ROE(3y)16.49%
ROE(5y)13.74%
ROIC(3y)6.24%
ROIC(5y)5.55%
1.3 Margins
The Profit Margin of FLNG (33.02%) is better than 87.30% of its industry peers.
FLNG's Profit Margin has improved in the last couple of years.
FLNG has a Operating Margin of 55.51%. This is amongst the best in the industry. FLNG outperforms 95.24% of its industry peers.
In the last couple of years the Operating Margin of FLNG has grown nicely.
The Gross Margin of FLNG (80.38%) is better than 87.30% of its industry peers.
FLNG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.51% | ||
| PM (TTM) | 33.02% | ||
| GM | 80.38% |
OM growth 3Y-1.78%
OM growth 5Y3.9%
PM growth 3Y-11.24%
PM growth 5Y18.48%
GM growth 3Y-0.73%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FLNG is destroying value.
Compared to 1 year ago, FLNG has more shares outstanding
FLNG has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, FLNG has a worse debt to assets ratio.
2.2 Solvency
FLNG has an Altman-Z score of 0.76. This is a bad value and indicates that FLNG is not financially healthy and even has some risk of bankruptcy.
FLNG has a Altman-Z score of 0.76. This is in the lower half of the industry: FLNG underperforms 73.02% of its industry peers.
The Debt to FCF ratio of FLNG is 9.90, which is on the high side as it means it would take FLNG, 9.90 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.90, FLNG perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
FLNG has a Debt/Equity ratio of 2.11. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.11, FLNG is doing worse than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 9.9 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.84
WACC7.22%
2.3 Liquidity
FLNG has a Current Ratio of 2.99. This indicates that FLNG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.99, FLNG belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
A Quick Ratio of 2.96 indicates that FLNG has no problem at all paying its short term obligations.
FLNG has a better Quick ratio (2.96) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
The earnings per share for FLNG have decreased by -2.24% in the last year.
Measured over the past years, FLNG shows a very strong growth in Earnings Per Share. The EPS has been growing by 46.48% on average per year.
The Revenue has decreased by -3.95% in the past year.
The Revenue has been growing by 24.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-2.24%
EPS 3Y-4.38%
EPS 5Y46.48%
EPS Q2Q%-18.57%
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y1.24%
Revenue growth 5Y24.33%
Sales Q2Q%-6.48%
3.2 Future
The Earnings Per Share is expected to decrease by -0.27% on average over the next years.
Based on estimates for the next years, FLNG will show a small growth in Revenue. The Revenue will grow by 0.25% on average per year.
EPS Next Y-15.5%
EPS Next 2Y-2.81%
EPS Next 3Y-0.27%
EPS Next 5YN/A
Revenue Next Year-3.34%
Revenue Next 2Y0.06%
Revenue Next 3Y0.25%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.30 indicates a reasonable valuation of FLNG.
Compared to the rest of the industry, the Price/Earnings ratio of FLNG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, FLNG is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.00, the valuation of FLNG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FLNG is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, FLNG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FLNG is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FLNG indicates a somewhat cheap valuation: FLNG is cheaper than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.54 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
FLNG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-2.81%
EPS Next 3Y-0.27%
5. Dividend
5.1 Amount
FLNG has a Yearly Dividend Yield of 13.91%, which is a nice return.
Compared to an average industry Dividend Yield of 60.92, FLNG pays a better dividend. On top of this FLNG pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, FLNG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.91% |
5.2 History
The dividend of FLNG is nicely growing with an annual growth rate of 97.42%!
Dividend Growth(5Y)97.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
137.38% of the earnings are spent on dividend by FLNG. This is not a sustainable payout ratio.
FLNG's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP137.38%
EPS Next 2Y-2.81%
EPS Next 3Y-0.27%
OSL:FLNG (3/7/2025, 7:00:00 PM)
237.6
+1.2 (+0.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners22.75%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap12.95B
Analysts72.86
Price Target300.48 (26.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.91% |
Yearly Dividend32.48
Dividend Growth(5Y)97.42%
DP137.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.99%
Min EPS beat(2)-10.02%
Max EPS beat(2)0.05%
EPS beat(4)3
Avg EPS beat(4)4.53%
Min EPS beat(4)-10.02%
Max EPS beat(4)18.84%
EPS beat(8)3
Avg EPS beat(8)-3.3%
EPS beat(12)5
Avg EPS beat(12)-0.08%
EPS beat(16)7
Avg EPS beat(16)0.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)-0.94%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-3.29%
Max Revenue beat(4)-0.94%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)1
Avg Revenue beat(12)-2.22%
Revenue beat(16)2
Avg Revenue beat(16)-1.95%
PT rev (1m)-2.95%
PT rev (3m)-3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.99%
EPS NY rev (1m)-6.46%
EPS NY rev (3m)-18.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-3.29%
Revenue NY rev (3m)-6.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 11 | ||
| P/S | 3.36 | ||
| P/FCF | 6.54 | ||
| P/OCF | 6.54 | ||
| P/B | 1.48 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 9.4 |
EPS(TTM)25.56
EY10.76%
EPS(NY)21.6
Fwd EY9.09%
FCF(TTM)36.31
FCFY15.28%
OCF(TTM)36.31
OCFY15.28%
SpS70.79
BVpS160.24
TBVpS160.24
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 14.59% | ||
| ROCE | 7.88% | ||
| ROIC | 6.07% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 7.35% | ||
| OM | 55.51% | ||
| PM (TTM) | 33.02% | ||
| GM | 80.38% | ||
| FCFM | 51.3% |
ROA(3y)5.29%
ROA(5y)4.5%
ROE(3y)16.49%
ROE(5y)13.74%
ROIC(3y)6.24%
ROIC(5y)5.55%
ROICexc(3y)7.39%
ROICexc(5y)6.39%
ROICexgc(3y)7.39%
ROICexgc(5y)6.39%
ROCE(3y)8.11%
ROCE(5y)7.21%
ROICexcg growth 3Y2.05%
ROICexcg growth 5Y20.33%
ROICexc growth 3Y2.05%
ROICexc growth 5Y20.33%
OM growth 3Y-1.78%
OM growth 5Y3.9%
PM growth 3Y-11.24%
PM growth 5Y18.48%
GM growth 3Y-0.73%
GM growth 5Y-0.23%
F-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 9.9 | ||
| Debt/EBITDA | 6.23 | ||
| Cap/Depr | 0.01% | ||
| Cap/Sales | 0% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.89% | ||
| Profit Quality | 155.33% | ||
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.96 | ||
| Altman-Z | 0.76 |
F-Score4
WACC7.22%
ROIC/WACC0.84
Cap/Depr(3y)0%
Cap/Depr(5y)406.61%
Cap/Sales(3y)0%
Cap/Sales(5y)99.57%
Profit Quality(3y)139.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.24%
EPS 3Y-4.38%
EPS 5Y46.48%
EPS Q2Q%-18.57%
EPS Next Y-15.5%
EPS Next 2Y-2.81%
EPS Next 3Y-0.27%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y1.24%
Revenue growth 5Y24.33%
Sales Q2Q%-6.48%
Revenue Next Year-3.34%
Revenue Next 2Y0.06%
Revenue Next 3Y0.25%
Revenue Next 5YN/A
EBIT growth 1Y-8.92%
EBIT growth 3Y-0.56%
EBIT growth 5Y29.17%
EBIT Next Year38.57%
EBIT Next 3Y9.37%
EBIT Next 5YN/A
FCF growth 1Y4.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.44%
OCF growth 3Y-5.24%
OCF growth 5Y28.82%