GOLAR LNG LTD (GLNG) Stock Fundamental Analysis
NASDAQ:GLNG - Nasdaq - BMG9456A1009 - Common Stock - Currency: USD
GLNG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of GLNG have multiple concerns. GLNG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year GLNG was profitable.
GLNG had a positive operating cash flow in the past year.
In multiple years GLNG reported negative net income over the last 5 years.
GLNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.09%, GLNG is not doing good in the industry: 67.30% of the companies in the same industry are doing better.
GLNG has a worse Return On Equity (0.19%) than 65.40% of its industry peers.
With a Return On Invested Capital value of 0.81%, GLNG is not doing good in the industry: 72.51% of the companies in the same industry are doing better.
GLNG had an Average Return On Invested Capital over the past 3 years of 1.67%. This is significantly below the industry average of 23.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.19% | ||
| ROIC | 0.81% |
ROA(3y)6.14%
ROA(5y)4.09%
ROE(3y)10.59%
ROE(5y)6.9%
ROIC(3y)1.67%
ROIC(5y)1.97%
1.3 Margins
Looking at the Profit Margin, with a value of 1.48%, GLNG is doing worse than 62.56% of the companies in the same industry.
GLNG's Profit Margin has declined in the last couple of years.
GLNG has a Operating Margin (13.96%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GLNG has declined.
GLNG has a better Gross Margin (52.53%) than 60.19% of its industry peers.
GLNG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.96% | ||
| PM (TTM) | 1.48% | ||
| GM | 52.53% |
OM growth 3Y-23.38%
OM growth 5Y-9.29%
PM growth 3Y-50.3%
PM growth 5YN/A
GM growth 3Y-10.75%
GM growth 5Y-3.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GLNG is destroying value.
GLNG has about the same amout of 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
GLNG has an Altman-Z score of 1.12. This is a bad value and indicates that GLNG is not financially healthy and even has some risk of bankruptcy.
GLNG has a Altman-Z score (1.12) which is in line with its industry peers.
A Debt/Equity ratio of 0.45 indicates that GLNG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, GLNG is in line with its industry, outperforming 50.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACC0.09
WACC8.91%
2.3 Liquidity
GLNG has a Current Ratio of 0.85. This is a bad value and indicates that GLNG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of GLNG (0.85) is worse than 67.30% of its industry peers.
A Quick Ratio of 0.85 indicates that GLNG may have some problems paying its short term obligations.
GLNG has a Quick ratio (0.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
GLNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.83%.
The Earnings Per Share has been decreasing by -2.16% on average over the past years.
Looking at the last year, GLNG shows a very negative growth in Revenue. The Revenue has decreased by -10.88% in the last year.
GLNG shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -10.32% yearly.
EPS 1Y (TTM)-48.83%
EPS 3Y-2.16%
EPS 5YN/A
EPS Q2Q%-60.57%
Revenue 1Y (TTM)-10.88%
Revenue growth 3Y0.01%
Revenue growth 5Y-10.32%
Sales Q2Q%-3.78%
3.2 Future
The Earnings Per Share is expected to decrease by -26.25% on average over the next years. This is quite bad
The Revenue is expected to grow by 17.76% on average over the next years. This is quite good.
EPS Next Y-4.92%
EPS Next 2Y-19.41%
EPS Next 3Y-26.25%
EPS Next 5YN/A
Revenue Next Year49.62%
Revenue Next 2Y21.83%
Revenue Next 3Y17.76%
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.
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 30.89 indicates a quite 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 61.14% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GLNG to the average of the S&P500 Index (27.30), we can say GLNG is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 39.43, 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 65.40% of the companies listed in the same industry.
GLNG is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.89 | ||
| Fwd PE | 39.43 |
4.2 Price Multiples
72.99% of the companies in the same industry are cheaper than GLNG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 57.38 |
4.3 Compensation for Growth
A cheap valuation may be justified as GLNG's earnings are expected to decrease with -26.25% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.41%
EPS Next 3Y-26.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, GLNG has a reasonable but not impressive dividend return.
GLNG's Dividend Yield is comparable with the industry average which is at 6.51.
GLNG's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
On average, the dividend of GLNG grows each year by 12.28%, which is quite nice.
GLNG has paid a dividend for at least 10 years, which is a reliable track record.
GLNG has decreased its dividend recently.
Dividend Growth(5Y)12.28%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
2684.72% of the earnings are spent on dividend by GLNG. This is not a sustainable payout ratio.
The Dividend Rate of GLNG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP2684.72%
EPS Next 2Y-19.41%
EPS Next 3Y-26.25%
40.77
+0.15 (+0.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89%
Inst Owner Change0%
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap4.27B
Analysts85
Price Target49.62 (21.71%)
Short Float %7.07%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend1
Dividend Growth(5Y)12.28%
DP2684.72%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.37%
Min EPS beat(2)-7.64%
Max EPS beat(2)-1.1%
EPS beat(4)1
Avg EPS beat(4)-3.9%
Min EPS beat(4)-35.5%
Max EPS beat(4)28.62%
EPS beat(8)5
Avg EPS beat(8)17.8%
EPS beat(12)8
Avg EPS beat(12)17.44%
EPS beat(16)10
Avg EPS beat(16)1359.4%
Revenue beat(2)0
Avg Revenue beat(2)-9.9%
Min Revenue beat(2)-11.62%
Max Revenue beat(2)-8.19%
Revenue beat(4)0
Avg Revenue beat(4)-12.81%
Min Revenue beat(4)-18.14%
Max Revenue beat(4)-8.19%
Revenue beat(8)0
Avg Revenue beat(8)-10.72%
Revenue beat(12)0
Avg Revenue beat(12)-14.21%
Revenue beat(16)0
Avg Revenue beat(16)-21.03%
PT rev (1m)2.72%
PT rev (3m)4.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.53%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-3.57%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-21.26%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-5.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.89 | ||
| Fwd PE | 39.43 | ||
| P/S | 16.54 | ||
| P/FCF | N/A | ||
| P/OCF | 11.16 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 57.38 |
EPS(TTM)1.32
EY3.24%
EPS(NY)1.03
Fwd EY2.54%
FCF(TTM)-0.87
FCFYN/A
OCF(TTM)3.65
OCFY8.96%
SpS2.47
BVpS19.06
TBVpS19.04
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 0.19% | ||
| ROCE | 1.03% | ||
| ROIC | 0.81% | ||
| ROICexc | 0.95% | ||
| ROICexgc | 0.96% | ||
| OM | 13.96% | ||
| PM (TTM) | 1.48% | ||
| GM | 52.53% | ||
| FCFM | N/A |
ROA(3y)6.14%
ROA(5y)4.09%
ROE(3y)10.59%
ROE(5y)6.9%
ROIC(3y)1.67%
ROIC(5y)1.97%
ROICexc(3y)2.08%
ROICexc(5y)2.34%
ROICexgc(3y)2.08%
ROICexgc(5y)2.34%
ROCE(3y)2.11%
ROCE(5y)2.49%
ROICexcg growth 3Y-23.68%
ROICexcg growth 5Y-18.6%
ROICexc growth 3Y-23.7%
ROICexc growth 5Y-18.62%
OM growth 3Y-23.38%
OM growth 5Y-9.29%
PM growth 3Y-50.3%
PM growth 5YN/A
GM growth 3Y-10.75%
GM growth 5Y-3.68%
F-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.06 | ||
| Cap/Depr | 881.53% | ||
| Cap/Sales | 183.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 426.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.12 |
F-Score5
WACC8.91%
ROIC/WACC0.09
Cap/Depr(3y)654.85%
Cap/Depr(5y)578.43%
Cap/Sales(3y)124.87%
Cap/Sales(5y)114.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-48.83%
EPS 3Y-2.16%
EPS 5YN/A
EPS Q2Q%-60.57%
EPS Next Y-4.92%
EPS Next 2Y-19.41%
EPS Next 3Y-26.25%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.88%
Revenue growth 3Y0.01%
Revenue growth 5Y-10.32%
Sales Q2Q%-3.78%
Revenue Next Year49.62%
Revenue Next 2Y21.83%
Revenue Next 3Y17.76%
Revenue Next 5YN/A
EBIT growth 1Y-66.78%
EBIT growth 3Y-23.38%
EBIT growth 5Y-18.65%
EBIT Next Year63.14%
EBIT Next 3Y22.83%
EBIT Next 5YN/A
FCF growth 1Y-205.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y27.53%
OCF growth 3Y10.12%
OCF growth 5Y24.47%