FLEX LNG LTD (FLNG) Stock Fundamental Analysis
NYSE:FLNG - New York Stock Exchange, Inc. - BMG359472021 - Common Stock - Currency: USD
Overall FLNG gets a fundamental rating of 5 out of 10. We evaluated FLNG against 211 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 decent growth rate and is not valued too expensively.
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.
FLNG had positive earnings in each of the past 5 years.
Each year in the past 5 years FLNG had a positive operating cash flow.
1.2 Ratios
FLNG's Return On Assets of 4.41% is in line compared to the rest of the industry. FLNG outperforms 56.87% of its industry peers.
FLNG has a better Return On Equity (14.59%) than 71.56% of its industry peers.
FLNG has a Return On Invested Capital (6.22%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for FLNG is significantly below the industry average of 23.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 14.59% | ||
| ROIC | 6.22% |
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
Looking at the Profit Margin, with a value of 33.02%, FLNG belongs to the top of the industry, outperforming 86.26% of the companies in the same industry.
FLNG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 55.51%, FLNG belongs to the top of the industry, outperforming 91.94% of the companies in the same industry.
In the last couple of years the Operating Margin of FLNG has grown nicely.
FLNG has a Gross Margin of 80.38%. This is amongst the best in the industry. FLNG outperforms 91.00% of its industry peers.
In the last couple of years the Gross Margin of FLNG has remained more or less at the same level.
| 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.
FLNG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FLNG has about the same amount of shares outstanding.
The debt/assets ratio for FLNG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that FLNG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.78, FLNG is in line with its industry, outperforming 40.76% of the companies in the same industry.
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.
FLNG's Debt to FCF ratio of 9.90 is in line compared to the rest of the industry. FLNG outperforms 52.61% of its industry peers.
A Debt/Equity ratio of 2.11 is on the high side and indicates that FLNG has dependencies on debt financing.
FLNG's Debt to Equity ratio of 2.11 is on the low side compared to the rest of the industry. FLNG is outperformed by 80.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 9.9 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.71
WACC8.78%
2.3 Liquidity
A Current Ratio of 2.99 indicates that FLNG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.99, FLNG belongs to the top of the industry, outperforming 85.31% of the companies in the same industry.
FLNG has a Quick Ratio of 2.96. This indicates that FLNG is financially healthy and has no problem in meeting its short term obligations.
FLNG's Quick ratio of 2.96 is amongst the best of the industry. FLNG outperforms 86.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
FLNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.71%.
FLNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.48% yearly.
FLNG shows a decrease in Revenue. In the last year, the revenue decreased by -3.95%.
FLNG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.33% yearly.
EPS 1Y (TTM)-10.71%
EPS 3Y-4.38%
EPS 5Y46.48%
EPS Q2Q%-22.86%
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y1.24%
Revenue growth 5Y24.33%
Sales Q2Q%-1.99%
3.2 Future
The Earnings Per Share is expected to decrease by -0.27% on average over the next years.
FLNG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.25% yearly.
EPS Next Y-18.56%
EPS Next 2Y-2.87%
EPS Next 3Y-0.27%
EPS Next 5YN/A
Revenue Next Year-3.61%
Revenue Next 2Y-0.05%
Revenue Next 3Y0.25%
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
FLNG is valuated reasonably with a Price/Earnings ratio of 10.58.
Compared to the rest of the industry, the Price/Earnings ratio of FLNG indicates a somewhat cheap valuation: FLNG is cheaper than 71.56% of the companies listed in the same industry.
FLNG is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.46, which indicates a very decent valuation of FLNG.
FLNG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FLNG is cheaper than 65.88% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, FLNG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FLNG.
FLNG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FLNG is cheaper than 84.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.94 | ||
| EV/EBITDA | 9.67 |
4.3 Compensation for Growth
The decent profitability rating of FLNG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-2.87%
EPS Next 3Y-0.27%
5. Dividend
5.1 Amount
FLNG has a Yearly Dividend Yield of 13.22%, which is a nice return.
FLNG's Dividend Yield is rather good when compared to the industry average which is at 6.51. FLNG pays more dividend than 94.31% of the companies in the same industry.
FLNG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.22% |
5.2 History
The dividend of FLNG is nicely growing with an annual growth rate of 97.42%!
FLNG has been paying a dividend for over 5 years, so it has already some track record.
The dividend of FLNG decreased recently.
Dividend Growth(5Y)97.42%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FLNG pays out 137.38% of its income as dividend. 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-2.87%
EPS Next 3Y-0.27%
23.28
+0.12 (+0.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners24.72%
Inst Owner Change0%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap1.27B
Analysts73.85
Price Target28.17 (21.01%)
Short Float %7.41%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.22% |
Yearly Dividend3
Dividend Growth(5Y)97.42%
DP137.38%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-1.23%
PT rev (3m)-0.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.46 | ||
| P/S | 3.56 | ||
| P/FCF | 6.94 | ||
| P/OCF | 6.94 | ||
| P/B | 1.57 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 9.67 |
EPS(TTM)2.2
EY9.45%
EPS(NY)2.23
Fwd EY9.56%
FCF(TTM)3.35
FCFY14.4%
OCF(TTM)3.35
OCFY14.4%
SpS6.54
BVpS14.8
TBVpS14.8
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 14.59% | ||
| ROCE | 7.88% | ||
| ROIC | 6.22% | ||
| ROICexc | 7.54% | ||
| ROICexgc | 7.54% | ||
| 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)6.4%
ROIC(5y)5.69%
ROICexc(3y)7.59%
ROICexc(5y)6.55%
ROICexgc(3y)7.59%
ROICexgc(5y)6.55%
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 | 1.88 | ||
| Cash Conversion | 66.89% | ||
| Profit Quality | 155.33% | ||
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.96 | ||
| Altman-Z | 0.78 |
F-Score4
WACC8.78%
ROIC/WACC0.71
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)-10.71%
EPS 3Y-4.38%
EPS 5Y46.48%
EPS Q2Q%-22.86%
EPS Next Y-18.56%
EPS Next 2Y-2.87%
EPS Next 3Y-0.27%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.95%
Revenue growth 3Y1.24%
Revenue growth 5Y24.33%
Sales Q2Q%-1.99%
Revenue Next Year-3.61%
Revenue Next 2Y-0.05%
Revenue Next 3Y0.25%
Revenue Next 5YN/A
EBIT growth 1Y-8.92%
EBIT growth 3Y-0.56%
EBIT growth 5Y29.17%
EBIT Next Year29.53%
EBIT Next 3Y11.48%
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%