GOLAR LNG LTD (GLNG)
BMG9456A1009 - Common Stock
We assign a fundamental rating of 3 out of 10 to GLNG. GLNG was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. While GLNG is still in line with the averages on profitability rating, there are concerns on its financial health. GLNG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
GLNG had positive earnings in the past year.
In the past year GLNG had a positive cash flow from operations.
In multiple years GLNG reported negative net income over the last 5 years.
In the past 5 years GLNG always reported a positive cash flow from operatings.
1.2 Ratios
GLNG has a Return On Assets of 0.31%. This is in the lower half of the industry: GLNG underperforms 76.47% of its industry peers.
GLNG has a worse Return On Equity (0.66%) than 73.04% of its industry peers.
GLNG has a Return On Invested Capital of 1.73%. This is in the lower half of the industry: GLNG underperforms 76.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GLNG is significantly below the industry average of 29.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.31% | ||
| ROE | 0.66% | ||
| ROIC | 1.73% |
ROA(3y)8.54%
ROA(5y)2.94%
ROE(3y)17.72%
ROE(5y)3.57%
ROIC(3y)2.06%
ROIC(5y)2.4%
1.3 Margins
GLNG has a worse Profit Margin (4.92%) than 65.20% of its industry peers.
Looking at the Operating Margin, with a value of 29.84%, GLNG is in the better half of the industry, outperforming 63.73% of the companies in the same industry.
GLNG's Operating Margin has improved in the last couple of years.
GLNG's Gross Margin of 57.12% is fine compared to the rest of the industry. GLNG outperforms 64.71% of its industry peers.
In the last couple of years the Gross Margin of GLNG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.84% | ||
| PM (TTM) | 4.92% | ||
| GM | 57.12% |
OM growth 3Y-3.75%
OM growth 5Y9.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.93%
GM growth 5Y5.36%
2. Health
2.1 Basic Checks
GLNG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GLNG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GLNG has been increased compared to 5 years ago.
The debt/assets ratio for GLNG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that GLNG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.35, GLNG perfoms like the industry average, outperforming 46.57% of the companies in the same industry.
GLNG has a Debt/Equity ratio of 0.53. This is a neutral value indicating GLNG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, GLNG is in line with its industry, outperforming 42.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.21
WACC8.06%
2.3 Liquidity
GLNG has a Current Ratio of 1.55. This is a normal value and indicates that GLNG is financially healthy and should not expect problems in meeting its short term obligations.
GLNG has a Current ratio of 1.55. This is in the better half of the industry: GLNG outperforms 62.25% of its industry peers.
A Quick Ratio of 1.55 indicates that GLNG should not have too much problems paying its short term obligations.
The Quick ratio of GLNG (1.55) is better than 70.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
GLNG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.62%, which is quite good.
The Revenue has decreased by -1.27% in the past year.
Measured over the past years, GLNG shows a decrease in Revenue. The Revenue has been decreasing by -7.07% on average per year.
EPS 1Y (TTM)16.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5.31%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y4.51%
Revenue growth 5Y-7.07%
Sales Q2Q%-3.64%
3.2 Future
Based on estimates for the next years, GLNG will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.86% on average per year.
GLNG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.76% yearly.
EPS Next Y-36.6%
EPS Next 2Y-20.72%
EPS Next 3Y-27.82%
EPS Next 5Y-17.86%
Revenue Next Year-9.75%
Revenue Next 2Y20%
Revenue Next 3Y11.76%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.13 indicates a rather expensive valuation of GLNG.
Compared to the rest of the industry, the Price/Earnings ratio of GLNG indicates a slightly more expensive valuation: GLNG is more expensive than 61.76% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GLNG to the average of the S&P500 Index (27.73), we can say GLNG is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 27.69, the valuation of GLNG can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GLNG indicates a slightly more expensive valuation: GLNG is more expensive than 69.12% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GLNG to the average of the S&P500 Index (22.83), we can say GLNG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 27.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLNG is valued a bit more expensive than the industry average as 79.41% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 37.22 |
4.3 Compensation for Growth
GLNG's earnings are expected to decrease with -27.82% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.72%
EPS Next 3Y-27.82%
5. Dividend
5.1 Amount
GLNG has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.08, GLNG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, GLNG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of GLNG decreases each year by -10.40%.
GLNG has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GLNG decreased recently.
Dividend Growth(5Y)-10.4%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GLNG pays out 1225.20% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of GLNG has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP1225.2%
EPS Next 2Y-20.72%
EPS Next 3Y-27.82%
GOLAR LNG LTD
NASDAQ:GLNG (12/20/2024, 8:14:55 PM)
After market: 41.3 -0.03 (-0.07%)41.33
-0.17 (-0.41%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.55%
Inst Owner Change-2.6%
Ins Owners2.66%
Ins Owner ChangeN/A
Market Cap4.31B
Analysts84.29
Price Target46.85 (13.36%)
Short Float %3.37%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Dividend Growth(5Y)-10.4%
DP1225.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.44%
Min EPS beat(2)-35.5%
Max EPS beat(2)28.62%
EPS beat(4)3
Avg EPS beat(4)32.4%
Min EPS beat(4)-35.5%
Max EPS beat(4)121.18%
EPS beat(8)6
Avg EPS beat(8)12.11%
EPS beat(12)9
Avg EPS beat(12)1.79%
EPS beat(16)11
Avg EPS beat(16)1349.78%
Revenue beat(2)0
Avg Revenue beat(2)-15.73%
Min Revenue beat(2)-18.14%
Max Revenue beat(2)-13.31%
Revenue beat(4)0
Avg Revenue beat(4)-12.39%
Min Revenue beat(4)-18.14%
Max Revenue beat(4)-1.34%
Revenue beat(8)0
Avg Revenue beat(8)-12.72%
Revenue beat(12)0
Avg Revenue beat(12)-19.14%
Revenue beat(16)0
Avg Revenue beat(16)-31.23%
PT rev (1m)0%
PT rev (3m)0.94%
EPS NQ rev (1m)-3.6%
EPS NQ rev (3m)-21.75%
EPS NY rev (1m)-13.42%
EPS NY rev (3m)-16.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.16%
Revenue NY rev (1m)-11.07%
Revenue NY rev (3m)-10.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 27.69 | ||
| P/S | 15.74 | ||
| P/FCF | N/A | ||
| P/OCF | 23.42 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 37.22 |
EPS(TTM)2.28
EY5.52%
EPS(NY)1.49
Fwd EY3.61%
FCF(TTM)-1.7
FCFYN/A
OCF(TTM)1.76
OCFY4.27%
SpS2.63
BVpS19.45
TBVpS19.43
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.31% | ||
| ROE | 0.66% | ||
| ROCE | 2.19% | ||
| ROIC | 1.73% | ||
| ROICexc | 2.15% | ||
| ROICexgc | 2.15% | ||
| OM | 29.84% | ||
| PM (TTM) | 4.92% | ||
| GM | 57.12% | ||
| FCFM | N/A |
ROA(3y)8.54%
ROA(5y)2.94%
ROE(3y)17.72%
ROE(5y)3.57%
ROIC(3y)2.06%
ROIC(5y)2.4%
ROICexc(3y)2.59%
ROICexc(5y)2.79%
ROICexgc(3y)2.59%
ROICexgc(5y)2.79%
ROCE(3y)2.61%
ROCE(5y)3.04%
ROICexcg growth 3Y2.3%
ROICexcg growth 5Y6.29%
ROICexc growth 3Y2.3%
ROICexc growth 5Y6.29%
OM growth 3Y-3.75%
OM growth 5Y9.29%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.93%
GM growth 5Y5.36%
F-Score4
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8 | ||
| Cap/Depr | 686.19% | ||
| Cap/Sales | 131.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 1.35 |
F-Score4
WACC8.06%
ROIC/WACC0.21
Cap/Depr(3y)506.68%
Cap/Depr(5y)483.05%
Cap/Sales(3y)95.35%
Cap/Sales(5y)98.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5.31%
EPS Next Y-36.6%
EPS Next 2Y-20.72%
EPS Next 3Y-27.82%
EPS Next 5Y-17.86%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y4.51%
Revenue growth 5Y-7.07%
Sales Q2Q%-3.64%
Revenue Next Year-9.75%
Revenue Next 2Y20%
Revenue Next 3Y11.76%
Revenue Next 5YN/A
EBIT growth 1Y48.45%
EBIT growth 3Y0.6%
EBIT growth 5Y1.56%
EBIT Next Year4.32%
EBIT Next 3Y5.37%
EBIT Next 5Y11.71%
FCF growth 1Y-1690.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.74%
OCF growth 3Y-2.85%
OCF growth 5Y2.99%