FLEX LNG LTD (FLNG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FLNG - BMG359472021 - Common Stock
26.09 USD
-0.1 (-0.38%)
Overall FLNG gets a fundamental rating of 5 out of 10. We evaluated FLNG against 207 industry peers in the Oil, Gas & Consumable Fuels industry. FLNG has an excellent profitability rating, but there are some minor concerns on its financial health. FLNG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year FLNG was profitable.
- In the past year FLNG had a positive cash flow from operations.
- Each year in the past 5 years FLNG has been profitable.
- FLNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FLNG's Return On Assets of 3.68% is in line compared to the rest of the industry. FLNG outperforms 54.11% of its industry peers.
- FLNG has a Return On Equity of 13.34%. This is in the better half of the industry: FLNG outperforms 72.95% of its industry peers.
- FLNG has a Return On Invested Capital (5.77%) which is comparable to the rest of the industry.
- FLNG had an Average Return On Invested Capital over the past 3 years of 6.40%. This is significantly below the industry average of 21.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 13.34% | ||
| ROIC | 5.77% |
ROA(3y)5.29%
ROA(5y)4.5%
ROE(3y)16.49%
ROE(5y)13.74%
ROIC(3y)6.4%
ROIC(5y)5.69%
1.3 Margins
- FLNG has a better Profit Margin (28.05%) than 85.99% of its industry peers.
- FLNG's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 52.15%, FLNG belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
- In the last couple of years the Operating Margin of FLNG has grown nicely.
- With an excellent Gross Margin value of 79.31%, FLNG belongs to the best of the industry, outperforming 89.37% of the companies in the same industry.
- FLNG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.15% | ||
| PM (TTM) | 28.05% | ||
| GM | 79.31% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FLNG is destroying value.
- The number of shares outstanding for FLNG has been increased compared to 1 year ago.
- The number of shares outstanding for FLNG remains at a similar level compared to 5 years ago.
- The debt/assets ratio for FLNG is higher compared to a year ago.
2.2 Solvency
- FLNG has an Altman-Z score of 0.84. 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 0.84. This is comparable to the rest of the industry: FLNG outperforms 41.55% of its industry peers.
- FLNG has a debt to FCF ratio of 11.97. This is a negative value and a sign of low solvency as FLNG would need 11.97 years to pay back of all of its debts.
- The Debt to FCF ratio of FLNG (11.97) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.39 is on the high side and indicates that FLNG has dependencies on debt financing.
- FLNG's Debt to Equity ratio of 2.39 is on the low side compared to the rest of the industry. FLNG is outperformed by 83.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 11.97 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.7
WACC8.24%
2.3 Liquidity
- A Current Ratio of 3.10 indicates that FLNG has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.10, FLNG belongs to the best of the industry, outperforming 83.57% of the companies in the same industry.
- FLNG has a Quick Ratio of 3.05. This indicates that FLNG is financially healthy and has no problem in meeting its short term obligations.
- FLNG has a Quick ratio of 3.05. This is amongst the best in the industry. FLNG outperforms 84.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 3.05 |
3. Growth
3.1 Past
- FLNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.68%.
- 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.
- FLNG shows a decrease in Revenue. In the last year, the revenue decreased by -3.20%.
- Measured over the past years, FLNG shows a very strong growth in Revenue. The Revenue has been growing by 24.33% on average per year.
EPS 1Y (TTM)-19.68%
EPS 3Y-4.38%
EPS 5Y46.48%
EPS Q2Q%-18.87%
Revenue 1Y (TTM)-3.2%
Revenue growth 3Y1.24%
Revenue growth 5Y24.33%
Sales Q2Q%-5.29%
3.2 Future
- FLNG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.49% yearly.
- Based on estimates for the next years, FLNG will show a small growth in Revenue. The Revenue will grow by 0.32% on average per year.
EPS Next Y-17.79%
EPS Next 2Y-7.32%
EPS Next 3Y0.49%
EPS Next 5YN/A
Revenue Next Year-5.3%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.32%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.04, FLNG is valued correctly.
- Based on the Price/Earnings ratio, FLNG is valued a bit cheaper than 64.25% of the companies in the same industry.
- When comparing the Price/Earnings ratio of FLNG to the average of the S&P500 Index (27.25), we can say FLNG is valued rather cheaply.
- A Price/Forward Earnings ratio of 12.87 indicates a correct valuation of FLNG.
- Based on the Price/Forward Earnings ratio, FLNG is valued a bit cheaper than 64.73% of the companies in the same industry.
- FLNG is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 12.87 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as FLNG.
- 83.09% of the companies in the same industry are more expensive than FLNG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.08 | ||
| EV/EBITDA | 10.9 |
4.3 Compensation for Growth
- The decent profitability rating of FLNG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-7.32%
EPS Next 3Y0.49%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 11.25%, FLNG is a good candidate for dividend investing.
- FLNG's Dividend Yield is rather good when compared to the industry average which is at 3.73. FLNG pays more dividend than 94.69% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, FLNG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.25% |
5.2 History
- On average, the dividend of FLNG grows each year by 97.42%, which is quite nice.
- FLNG has been paying a dividend for over 5 years, so it has already some track record.
- FLNG has decreased its dividend recently.
Dividend Growth(5Y)97.42%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 164.77% of the earnings are spent on dividend by FLNG. This is not a sustainable payout ratio.
- The dividend of FLNG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP164.77%
EPS Next 2Y-7.32%
EPS Next 3Y0.49%
FLEX LNG LTD / FLNG FAQ
Can you provide the ChartMill fundamental rating for FLEX LNG LTD?
ChartMill assigns a fundamental rating of 5 / 10 to FLNG.
What is the valuation status for FLNG stock?
ChartMill assigns a valuation rating of 6 / 10 to FLEX LNG LTD (FLNG). This can be considered as Fairly Valued.
How profitable is FLEX LNG LTD (FLNG) stock?
FLEX LNG LTD (FLNG) has a profitability rating of 7 / 10.
What is the valuation of FLEX LNG LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FLEX LNG LTD (FLNG) is 13.05 and the Price/Book (PB) ratio is 1.93.
What is the earnings growth outlook for FLEX LNG LTD?
The Earnings per Share (EPS) of FLEX LNG LTD (FLNG) is expected to decline by -17.79% in the next year.