FLEX LNG LTD (FLNG) Stock Fundamental Analysis
NYSE:FLNG - New York Stock Exchange, Inc. - BMG359472021 - Common Stock - Currency: USD
Taking everything into account, FLNG scores 4 out of 10 in our fundamental rating. FLNG was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. FLNG has only an average score on both its financial health and profitability. FLNG has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Of the past 5 years FLNG 4 years were profitable.
Of the past 5 years FLNG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FLNG (3.63%) is worse than 60.78% of its industry peers.
FLNG has a Return On Equity (11.45%) which is in line with its industry peers.
FLNG has a Return On Invested Capital (6.83%) 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 28.74%.
The last Return On Invested Capital (6.83%) for FLNG is above the 3 year average (6.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 11.45% | ||
| ROIC | 6.83% |
ROA(3y)5.92%
ROA(5y)3.83%
ROE(3y)17.71%
ROE(5y)11.22%
ROIC(3y)6.5%
ROIC(5y)5%
1.3 Margins
FLNG has a better Profit Margin (25.33%) than 75.49% of its industry peers.
In the last couple of years the Profit Margin of FLNG has grown nicely.
FLNG has a better Operating Margin (56.70%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of FLNG has grown nicely.
The Gross Margin of FLNG (80.49%) is better than 90.69% of its industry peers.
FLNG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 56.7% | ||
| PM (TTM) | 25.33% | ||
| GM | 80.49% |
OM growth 3Y8.38%
OM growth 5Y9.28%
PM growth 3Y87.25%
PM growth 5Y16.22%
GM growth 3Y1.72%
GM growth 5Y4.29%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that FLNG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FLNG (0.76) is worse than 63.24% of its industry peers.
FLNG has a debt to FCF ratio of 9.05. This is a negative value and a sign of low solvency as FLNG would need 9.05 years to pay back of all of its debts.
FLNG has a Debt to FCF ratio of 9.05. This is comparable to the rest of the industry: FLNG outperforms 46.08% of its industry peers.
A Debt/Equity ratio of 1.97 is on the high side and indicates that FLNG has dependencies on debt financing.
FLNG has a Debt to Equity ratio of 1.97. This is amonst the worse of the industry: FLNG underperforms 84.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 9.05 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.81
WACC8.44%
2.3 Liquidity
A Current Ratio of 2.21 indicates that FLNG has no problem at all paying its short term obligations.
FLNG has a Current ratio of 2.21. This is in the better half of the industry: FLNG outperforms 73.53% of its industry peers.
FLNG has a Quick Ratio of 2.18. This indicates that FLNG is financially healthy and has no problem in meeting its short term obligations.
FLNG has a Quick ratio of 2.18. This is in the better half of the industry: FLNG outperforms 75.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
FLNG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.24%.
FLNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.48% yearly.
EPS 1Y (TTM)-2.24%
EPS 3Y-4.38%
EPS 5Y46.48%
EPS Q2Q%-18.57%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.48%
3.2 Future
The Earnings Per Share is expected to decrease by -0.27% on average over the next years.
The Revenue is expected to grow by 0.25% on average over the next years.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.88 indicates a reasonable valuation of FLNG.
65.69% of the companies in the same industry are more expensive than FLNG, based on the Price/Earnings ratio.
FLNG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
The Price/Forward Earnings ratio is 11.69, which indicates a very decent valuation of FLNG.
Based on the Price/Forward Earnings ratio, FLNG is valued a bit cheaper than 60.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FLNG to the average of the S&P500 Index (22.70), we can say FLNG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
FLNG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, FLNG is valued a bit cheaper than 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 9.45 |
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)0.21
EPS Next 2Y-2.81%
EPS Next 3Y-0.27%
5. Dividend
5.1 Amount
FLNG has a Yearly Dividend Yield of 13.09%, which is a nice return.
FLNG's Dividend Yield is rather good when compared to the industry average which is at 6.67. FLNG pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, FLNG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.09% |
5.2 History
The dividend of FLNG is nicely growing with an annual growth rate of 165.66%!
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)165.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
183.03% 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.
DP183.03%
EPS Next 2Y-2.81%
EPS Next 3Y-0.27%
23.31
+0.39 (+1.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners22.75%
Inst Owner Change-89.42%
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap1.27B
Analysts78.46
Price Target27.09 (16.22%)
Short Float %6.91%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.09% |
Yearly Dividend3.37
Dividend Growth(5Y)165.66%
DP183.03%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.38%
Min EPS beat(2)-10.02%
Max EPS beat(2)9.26%
EPS beat(4)2
Avg EPS beat(4)3.91%
Min EPS beat(4)-10.02%
Max EPS beat(4)18.84%
EPS beat(8)3
Avg EPS beat(8)3.13%
EPS beat(12)5
Avg EPS beat(12)0.14%
EPS beat(16)6
Avg EPS beat(16)-0.64%
Revenue beat(2)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-3.29%
Max Revenue beat(2)-2.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.52%
Min Revenue beat(4)-3.29%
Max Revenue beat(4)-1.7%
Revenue beat(8)1
Avg Revenue beat(8)-1.91%
Revenue beat(12)2
Avg Revenue beat(12)-1.95%
Revenue beat(16)3
Avg Revenue beat(16)-1.83%
PT rev (1m)-0.79%
PT rev (3m)-4.94%
EPS NQ rev (1m)-4.31%
EPS NQ rev (3m)-4.31%
EPS NY rev (1m)-5.4%
EPS NY rev (3m)-5.4%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 11.69 | ||
| P/S | 3.5 | ||
| P/FCF | 6.88 | ||
| P/OCF | 6.88 | ||
| P/B | 1.58 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)2.36
EY10.12%
EPS(NY)1.99
Fwd EY8.55%
FCF(TTM)3.39
FCFY14.54%
OCF(TTM)3.39
OCFY14.54%
SpS6.65
BVpS14.71
TBVpS14.71
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 11.45% | ||
| ROCE | 8.64% | ||
| ROIC | 6.83% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 7.77% | ||
| OM | 56.7% | ||
| PM (TTM) | 25.33% | ||
| GM | 80.49% | ||
| FCFM | 50.95% |
ROA(3y)5.92%
ROA(5y)3.83%
ROE(3y)17.71%
ROE(5y)11.22%
ROIC(3y)6.5%
ROIC(5y)5%
ROICexc(3y)7.44%
ROICexc(5y)5.64%
ROICexgc(3y)7.44%
ROICexgc(5y)5.64%
ROCE(3y)8.23%
ROCE(5y)6.33%
ROICexcg growth 3Y39.85%
ROICexcg growth 5Y33.26%
ROICexc growth 3Y39.85%
ROICexc growth 5Y33.26%
OM growth 3Y8.38%
OM growth 5Y9.28%
PM growth 3Y87.25%
PM growth 5Y16.22%
GM growth 3Y1.72%
GM growth 5Y4.29%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.97 | ||
| Debt/FCF | 9.05 | ||
| Debt/EBITDA | 5.62 | ||
| Cap/Depr | 0.01% | ||
| Cap/Sales | 0% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.79% | ||
| Profit Quality | 201.15% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 0.76 |
F-Score5
WACC8.44%
ROIC/WACC0.81
Cap/Depr(3y)126.94%
Cap/Depr(5y)609.44%
Cap/Sales(3y)25.81%
Cap/Sales(5y)148.17%
Profit Quality(3y)N/A
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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.48%
Revenue Next Year-3.34%
Revenue Next 2Y0.06%
Revenue Next 3Y0.25%
Revenue Next 5YN/A
EBIT growth 1Y-6.71%
EBIT growth 3Y42.14%
EBIT growth 5Y49.58%
EBIT Next Year26.07%
EBIT Next 3Y9.67%
EBIT Next 5Y4.48%
FCF growth 1Y-24.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.85%
OCF growth 3Y25.15%
OCF growth 5Y37.42%