CHENIERE ENERGY INC (LNG)
US16411R2085 - Common Stock
We assign a fundamental rating of 5 out of 10 to LNG. LNG was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. LNG has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, LNG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year LNG was profitable.
LNG had a positive operating cash flow in the past year.
In multiple years LNG reported negative net income over the last 5 years.
LNG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LNG has a Return On Assets of 8.48%. This is in the better half of the industry: LNG outperforms 71.08% of its industry peers.
The Return On Equity of LNG (71.58%) is better than 95.59% of its industry peers.
LNG's Return On Invested Capital of 14.72% is amongst the best of the industry. LNG outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.48% | ||
| ROE | 71.58% | ||
| ROIC | 14.72% |
ROA(3y)6.81%
ROA(5y)4.4%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of LNG (22.70%) is better than 70.10% of its industry peers.
In the last couple of years the Profit Margin of LNG has grown nicely.
The Operating Margin of LNG (42.41%) is better than 81.86% of its industry peers.
In the last couple of years the Operating Margin of LNG has grown nicely.
With a decent Gross Margin value of 55.72%, LNG is doing good in the industry, outperforming 62.25% of the companies in the same industry.
In the last couple of years the Gross Margin of LNG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.41% | ||
| PM (TTM) | 22.7% | ||
| GM | 55.72% |
OM growth 3Y39.17%
OM growth 5Y23.26%
PM growth 3YN/A
PM growth 5Y52.38%
GM growth 3Y24.19%
GM growth 5Y19.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LNG is creating value.
Compared to 1 year ago, LNG has less shares outstanding
Compared to 5 years ago, LNG has less shares outstanding
Compared to 1 year ago, LNG has an improved debt to assets ratio.
2.2 Solvency
LNG has an Altman-Z score of 1.85. This is not the best score and indicates that LNG is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.85, LNG perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
LNG has a debt to FCF ratio of 7.60. This is a slightly negative value and a sign of low solvency as LNG would need 7.60 years to pay back of all of its debts.
LNG's Debt to FCF ratio of 7.60 is in line compared to the rest of the industry. LNG outperforms 50.98% of its industry peers.
A Debt/Equity ratio of 4.52 is on the high side and indicates that LNG has dependencies on debt financing.
LNG has a Debt to Equity ratio of 4.52. This is amonst the worse of the industry: LNG underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.52 | ||
| Debt/FCF | 7.6 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.91
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.07 indicates that LNG should not have too much problems paying its short term obligations.
LNG has a Current ratio of 1.07. This is comparable to the rest of the industry: LNG outperforms 42.16% of its industry peers.
A Quick Ratio of 0.98 indicates that LNG may have some problems paying its short term obligations.
The Quick ratio of LNG (0.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
LNG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -68.82%.
LNG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.71% yearly.
The Revenue for LNG has decreased by -34.74% in the past year. This is quite bad
The Revenue has been growing by 20.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-68.82%
EPS 3YN/A
EPS 5Y83.71%
EPS Q2Q%-44.1%
Revenue 1Y (TTM)-34.74%
Revenue growth 3Y29.65%
Revenue growth 5Y20.62%
Sales Q2Q%-9.52%
3.2 Future
LNG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -21.24% yearly.
The Revenue is expected to grow by 1.02% on average over the next years.
EPS Next Y-71.15%
EPS Next 2Y-47.08%
EPS Next 3Y-31.73%
EPS Next 5Y-21.24%
Revenue Next Year-21.9%
Revenue Next 2Y-4.69%
Revenue Next 3Y3.6%
Revenue Next 5Y1.02%
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
The Price/Earnings ratio is 13.26, which indicates a correct valuation of LNG.
The rest of the industry has a similar Price/Earnings ratio as LNG.
The average S&P500 Price/Earnings ratio is at 27.73. LNG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 18.37, which indicates a rather expensive current valuation of LNG.
Based on the Price/Forward Earnings ratio, LNG is valued a bit more expensive than the industry average as 60.29% of the companies are valued more cheaply.
LNG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 18.37 |
4.2 Price Multiples
LNG's Enterprise Value to EBITDA ratio is in line with the industry average.
LNG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15 | ||
| EV/EBITDA | 8.37 |
4.3 Compensation for Growth
The decent profitability rating of LNG may justify a higher PE ratio.
A cheap valuation may be justified as LNG's earnings are expected to decrease with -31.73% in the coming years.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-47.08%
EPS Next 3Y-31.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, LNG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.08, LNG is paying slightly less dividend.
With a Dividend Yield of 0.97, LNG pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
LNG has paid a dividend for less than 5 years, so there is no long track record yet.
LNG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
11.01% of the earnings are spent on dividend by LNG. This is a low number and sustainable payout ratio.
DP11.01%
EPS Next 2Y-47.08%
EPS Next 3Y-31.73%
CHENIERE ENERGY INC
NYSE:LNG (12/20/2024, 8:22:39 PM)
After market: 209.5 +0.61 (+0.29%)208.89
+2.95 (+1.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.1%
Inst Owner Change0.11%
Ins Owners0.63%
Ins Owner Change-0.04%
Market Cap46.87B
Analysts85.93
Price Target222.6 (6.56%)
Short Float %1.71%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Dividend Growth(5Y)N/A
DP11.01%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)113.01%
Min EPS beat(2)104.81%
Max EPS beat(2)121.2%
EPS beat(4)3
Avg EPS beat(4)82.64%
Min EPS beat(4)-5.77%
Max EPS beat(4)121.2%
EPS beat(8)7
Avg EPS beat(8)134.54%
EPS beat(12)7
Avg EPS beat(12)14.69%
EPS beat(16)8
Avg EPS beat(16)-38.99%
Revenue beat(2)0
Avg Revenue beat(2)-4.3%
Min Revenue beat(2)-8.53%
Max Revenue beat(2)-0.08%
Revenue beat(4)2
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-8.53%
Max Revenue beat(4)6.63%
Revenue beat(8)6
Avg Revenue beat(8)8.21%
Revenue beat(12)10
Avg Revenue beat(12)15.94%
Revenue beat(16)12
Avg Revenue beat(16)11.67%
PT rev (1m)5.42%
PT rev (3m)6.43%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)23.2%
EPS NY rev (1m)0.55%
EPS NY rev (3m)15.5%
Revenue NQ rev (1m)1.57%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 18.37 | ||
| P/S | 2.91 | ||
| P/FCF | 15 | ||
| P/OCF | 8.56 | ||
| P/B | 9.19 | ||
| P/tB | 9.19 | ||
| EV/EBITDA | 8.37 |
EPS(TTM)15.75
EY7.54%
EPS(NY)11.37
Fwd EY5.44%
FCF(TTM)13.93
FCFY6.67%
OCF(TTM)24.39
OCFY11.68%
SpS71.71
BVpS22.74
TBVpS22.74
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.48% | ||
| ROE | 71.58% | ||
| ROCE | 17.53% | ||
| ROIC | 14.72% | ||
| ROICexc | 15.8% | ||
| ROICexgc | 15.8% | ||
| OM | 42.41% | ||
| PM (TTM) | 22.7% | ||
| GM | 55.72% | ||
| FCFM | 19.42% |
ROA(3y)6.81%
ROA(5y)4.4%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y74.67%
ROICexcg growth 5Y43.34%
ROICexc growth 3Y74.68%
ROICexc growth 5Y43.35%
OM growth 3Y39.17%
OM growth 5Y23.26%
PM growth 3YN/A
PM growth 5Y52.38%
GM growth 3Y24.19%
GM growth 5Y19.61%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.52 | ||
| Debt/FCF | 7.6 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 193.09% | ||
| Cap/Sales | 14.59% | ||
| Interest Coverage | 7.19 | ||
| Cash Conversion | 68.07% | ||
| Profit Quality | 85.57% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.85 |
F-Score5
WACC7.72%
ROIC/WACC1.91
Cap/Depr(3y)145.48%
Cap/Depr(5y)203.73%
Cap/Sales(3y)7.32%
Cap/Sales(5y)14.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.82%
EPS 3YN/A
EPS 5Y83.71%
EPS Q2Q%-44.1%
EPS Next Y-71.15%
EPS Next 2Y-47.08%
EPS Next 3Y-31.73%
EPS Next 5Y-21.24%
Revenue 1Y (TTM)-34.74%
Revenue growth 3Y29.65%
Revenue growth 5Y20.62%
Sales Q2Q%-9.52%
Revenue Next Year-21.9%
Revenue Next 2Y-4.69%
Revenue Next 3Y3.6%
Revenue Next 5Y1.02%
EBIT growth 1Y-65.5%
EBIT growth 3Y80.43%
EBIT growth 5Y48.68%
EBIT Next Year-44.67%
EBIT Next 3Y-13.67%
EBIT Next 5Y-9.16%
FCF growth 1Y-51.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-31.44%
OCF growth 3Y88.09%
OCF growth 5Y33.44%