CHENIERE ENERGY INC (LNG) Stock Fundamental Analysis
NYSE:LNG - New York Stock Exchange, Inc. - US16411R2085 - Common Stock - Currency: USD
Taking everything into account, LNG scores 5 out of 10 in our fundamental rating. LNG was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. While LNG belongs to the best of the industry regarding profitability, 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.
In the past year LNG had a positive cash flow from operations.
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 7.41%. This is in the better half of the industry: LNG outperforms 72.17% of its industry peers.
Looking at the Return On Equity, with a value of 57.06%, LNG belongs to the top of the industry, outperforming 95.28% of the companies in the same industry.
LNG has a Return On Invested Capital of 13.01%. This is amongst the best in the industry. LNG outperforms 83.02% of its industry peers.
LNG had an Average Return On Invested Capital over the past 3 years of 19.06%. This is significantly below the industry average of 27.42%.
The 3 year average ROIC (19.06%) for LNG is well above the current ROIC(13.01%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.41% | ||
| ROE | 57.06% | ||
| ROIC | 13.01% |
ROA(3y)11.27%
ROA(5y)5.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.06%
ROIC(5y)N/A
1.3 Margins
LNG has a better Profit Margin (20.71%) than 72.64% of its industry peers.
In the last couple of years the Profit Margin of LNG has grown nicely.
The Operating Margin of LNG (39.02%) is better than 82.08% of its industry peers.
LNG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 51.11%, LNG perfoms like the industry average, outperforming 56.13% of the companies in the same industry.
LNG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.02% | ||
| PM (TTM) | 20.71% | ||
| GM | 51.11% |
OM growth 3YN/A
OM growth 5Y10.75%
PM growth 3YN/A
PM growth 5Y25.47%
GM growth 3Y90.4%
GM growth 5Y6.04%
2. Health
2.1 Basic Checks
LNG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LNG has less shares outstanding
Compared to 5 years ago, LNG has less shares outstanding
LNG has a better debt/assets ratio than last year.
2.2 Solvency
LNG has an Altman-Z score of 1.88. 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.
LNG has a Altman-Z score of 1.88. This is in the better half of the industry: LNG outperforms 65.57% of its industry peers.
LNG has a debt to FCF ratio of 7.43. This is a slightly negative value and a sign of low solvency as LNG would need 7.43 years to pay back of all of its debts.
The Debt to FCF ratio of LNG (7.43) is comparable to the rest of the industry.
LNG has a Debt/Equity ratio of 4.04. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.04, LNG is not doing good in the industry: 88.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 7.43 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.32
WACC9.85%
2.3 Liquidity
A Current Ratio of 1.08 indicates that LNG should not have too much problems paying its short term obligations.
The Current ratio of LNG (1.08) is comparable to the rest of the industry.
A Quick Ratio of 0.97 indicates that LNG may have some problems paying its short term obligations.
LNG has a Quick ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for LNG have decreased strongly by -64.94% in the last year.
Measured over the past years, LNG shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.40% on average per year.
The Revenue for LNG has decreased by -23.00% in the past year. This is quite bad
Measured over the past years, LNG shows a quite strong growth in Revenue. The Revenue has been growing by 10.05% on average per year.
EPS 1Y (TTM)-64.94%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%-25.98%
Revenue 1Y (TTM)-23%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%-8.02%
3.2 Future
LNG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.51% yearly.
The Revenue is expected to grow by 9.44% on average over the next years. This is quite good.
EPS Next Y-11.4%
EPS Next 2Y0.79%
EPS Next 3Y-0.58%
EPS Next 5Y9.51%
Revenue Next Year29.21%
Revenue Next 2Y21.12%
Revenue Next 3Y12.06%
Revenue Next 5Y9.44%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.26, which indicates a correct valuation of LNG.
LNG's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. LNG is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.36, the valuation of LNG can be described as rather expensive.
LNG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, LNG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 18.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LNG is on the same level as its industry peers.
LNG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
The decent profitability rating of LNG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y0.79%
EPS Next 3Y-0.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, LNG is not a good candidate for dividend investing.
LNG's Dividend Yield is slightly below the industry average, which is at 7.82.
Compared to an average S&P500 Dividend Yield of 2.57, LNG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
LNG has been paying a dividend for over 5 years, so it has already some track record.
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
12.67% of the earnings are spent on dividend by LNG. This is a low number and sustainable payout ratio.
DP12.67%
EPS Next 2Y0.79%
EPS Next 3Y-0.58%
231.45
+4 (+1.76%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners90.25%
Inst Owner Change0.01%
Ins Owners0.62%
Ins Owner Change-0.27%
Market Cap51.57B
Analysts86.9
Price Target260.02 (12.34%)
Short Float %1.84%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend1.79
Dividend Growth(5Y)N/A
DP12.67%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)82.95%
Min EPS beat(2)61.09%
Max EPS beat(2)104.81%
EPS beat(4)3
Avg EPS beat(4)70.33%
Min EPS beat(4)-5.77%
Max EPS beat(4)121.2%
EPS beat(8)7
Avg EPS beat(8)120.96%
EPS beat(12)8
Avg EPS beat(12)54.44%
EPS beat(16)9
Avg EPS beat(16)-22.71%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-8.53%
Max Revenue beat(4)6.09%
Revenue beat(8)6
Avg Revenue beat(8)6.83%
Revenue beat(12)10
Avg Revenue beat(12)12.62%
Revenue beat(16)12
Avg Revenue beat(16)11.57%
PT rev (1m)0.57%
PT rev (3m)10.29%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)4.73%
EPS NY rev (1m)7.1%
EPS NY rev (3m)10.71%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)12.2%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)10.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 18.36 | ||
| P/S | 3.28 | ||
| P/FCF | 16.34 | ||
| P/OCF | 9.56 | ||
| P/B | 9.05 | ||
| P/tB | 9.17 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)14.23
EY6.15%
EPS(NY)12.61
Fwd EY5.45%
FCF(TTM)14.16
FCFY6.12%
OCF(TTM)24.21
OCFY10.46%
SpS70.48
BVpS25.58
TBVpS25.23
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.41% | ||
| ROE | 57.06% | ||
| ROCE | 15.55% | ||
| ROIC | 13.01% | ||
| ROICexc | 13.95% | ||
| ROICexgc | 13.98% | ||
| OM | 39.02% | ||
| PM (TTM) | 20.71% | ||
| GM | 51.11% | ||
| FCFM | 20.1% |
ROA(3y)11.27%
ROA(5y)5.52%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.06%
ROIC(5y)N/A
ROICexc(3y)20.8%
ROICexc(5y)N/A
ROICexgc(3y)20.85%
ROICexgc(5y)N/A
ROCE(3y)22.77%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y17.88%
ROICexc growth 3YN/A
ROICexc growth 5Y17.89%
OM growth 3YN/A
OM growth 5Y10.75%
PM growth 3YN/A
PM growth 5Y25.47%
GM growth 3Y90.4%
GM growth 5Y6.04%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 7.43 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 183.44% | ||
| Cap/Sales | 14.25% | ||
| Interest Coverage | 5.7 | ||
| Cash Conversion | 73.41% | ||
| Profit Quality | 97.05% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 1.88 |
F-Score5
WACC9.85%
ROIC/WACC1.32
Cap/Depr(3y)174.77%
Cap/Depr(5y)163.44%
Cap/Sales(3y)10.04%
Cap/Sales(5y)11.17%
Profit Quality(3y)256.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.94%
EPS 3YN/A
EPS 5Y45.4%
EPS Q2Q%-25.98%
EPS Next Y-11.4%
EPS Next 2Y0.79%
EPS Next 3Y-0.58%
EPS Next 5Y9.51%
Revenue 1Y (TTM)-23%
Revenue growth 3Y-0.34%
Revenue growth 5Y10.05%
Sales Q2Q%-8.02%
Revenue Next Year29.21%
Revenue Next 2Y21.12%
Revenue Next 3Y12.06%
Revenue Next 5Y9.44%
EBIT growth 1Y-60.46%
EBIT growth 3YN/A
EBIT growth 5Y21.88%
EBIT Next Year30.13%
EBIT Next 3Y11.2%
EBIT Next 5Y6.42%
FCF growth 1Y-49.88%
FCF growth 3Y28.05%
FCF growth 5YN/A
OCF growth 1Y-35.92%
OCF growth 3Y29.76%
OCF growth 5Y24.09%