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CHENIERE ENERGY INC (LNG) Stock Fundamental Analysis

NYSE:LNG - New York Stock Exchange, Inc. - US16411R2085 - Common Stock

233.36  -16.27 (-6.52%)

After market: 232.666 -0.69 (-0.3%)

Fundamental Rating

5

Taking everything into account, LNG scores 5 out of 10 in our fundamental rating. LNG was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. LNG scores excellent on profitability, but there are some minor concerns on its financial health. LNG is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

LNG had positive earnings in the past year.
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.
Each year in the past 5 years LNG had a positive operating cash flow.
LNG Yearly Net Income VS EBIT VS OCF VS FCFLNG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B 10B 15B

1.2 Ratios

LNG has a better Return On Assets (8.48%) than 71.36% of its industry peers.
LNG's Return On Equity of 71.58% is amongst the best of the industry. LNG outperforms 95.63% of its industry peers.
LNG has a Return On Invested Capital of 14.72%. This is amongst the best in the industry. LNG outperforms 82.52% of its industry peers.
Industry RankSector 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
LNG Yearly ROA, ROE, ROICLNG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -1K -2K -3K -4K

1.3 Margins

LNG's Profit Margin of 22.70% is fine compared to the rest of the industry. LNG outperforms 70.87% of its industry peers.
LNG's Profit Margin has improved in the last couple of years.
LNG's Operating Margin of 42.41% is amongst the best of the industry. LNG outperforms 82.52% of its industry peers.
LNG's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 55.72%, LNG is doing good in the industry, outperforming 62.14% of the companies in the same industry.
LNG's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
LNG Yearly Profit, Operating, Gross MarginsLNG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200 -300

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4

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.
The number of shares outstanding for LNG has been reduced compared to 1 year ago.
LNG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LNG has been reduced compared to a year ago.
LNG Yearly Shares OutstandingLNG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
LNG Yearly Total Debt VS Total AssetsLNG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

An Altman-Z score of 2.00 indicates that LNG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.00, LNG perfoms like the industry average, outperforming 56.80% 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 has a Debt to FCF ratio of 7.60. This is comparable to the rest of the industry: LNG outperforms 50.49% 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.
Looking at the Debt to Equity ratio, with a value of 4.52, LNG is doing worse than 91.75% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 4.52
Debt/FCF 7.6
Altman-Z 2
ROIC/WACC1.84
WACC7.99%
LNG Yearly LT Debt VS Equity VS FCFLNG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 1.07 indicates that LNG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.07, LNG is in line with its industry, outperforming 40.29% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that LNG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, LNG is in line with its industry, outperforming 45.63% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.07
Quick Ratio 0.98
LNG Yearly Current Assets VS Current LiabilitesLNG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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4

3. Growth

3.1 Past

The earnings per share for LNG have decreased strongly by -68.82% in the last year.
The Earnings Per Share has been growing by 83.71% on average over the past years. This is a very strong growth
LNG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -34.74%.
Measured over the past years, LNG shows a very strong growth in Revenue. The Revenue has been growing by 20.62% on average per year.
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-71.14%
EPS Next 2Y-47.03%
EPS Next 3Y-32.19%
EPS Next 5Y-21.24%
Revenue Next Year-22.16%
Revenue Next 2Y-4.91%
Revenue Next 3Y2.36%
Revenue Next 5Y1.02%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
LNG Yearly Revenue VS EstimatesLNG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B
LNG Yearly EPS VS EstimatesLNG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 10 20 30 40

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.82, which indicates a correct valuation of LNG.
LNG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.19, LNG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 20.49, LNG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LNG is valued a bit more expensive than 63.11% of the companies in the same industry.
LNG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.37.
Industry RankSector Rank
PE 14.82
Fwd PE 20.49
LNG Price Earnings VS Forward Price EarningsLNG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as LNG.
LNG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 16.75
EV/EBITDA 9.59
LNG Per share dataLNG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

LNG has a very decent profitability rating, which may justify a higher PE ratio.
LNG's earnings are expected to decrease with -32.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-47.03%
EPS Next 3Y-32.19%

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2

5. Dividend

5.1 Amount

With a yearly dividend of 0.79%, LNG is not a good candidate for dividend investing.
LNG's Dividend Yield is slightly below the industry average, which is at 6.39.
With a Dividend Yield of 0.79, LNG pays less dividend than the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 0.79%

5.2 History

LNG has been paying a dividend for less than 5 years, so it still needs to build a 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
LNG Yearly Dividends per shareLNG Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.5 1 1.5

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-47.03%
EPS Next 3Y-32.19%
LNG Yearly Income VS Free CF VS DividendLNG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B
LNG Dividend Payout.LNG Dividend Payout, showing the Payout Ratio.LNG Dividend Payout.PayoutRetained Earnings

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CHENIERE ENERGY INC

NYSE:LNG (1/22/2025, 5:29:07 PM)

After market: 232.666 -0.69 (-0.3%)

233.36

-16.27 (-6.52%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-20 2025-02-20/amc
Inst Owners89.1%
Inst Owner Change-0.32%
Ins Owners0.63%
Ins Owner Change-0.02%
Market Cap52.36B
Analysts86.67
Price Target235.76 (1.03%)
Short Float %1.69%
Short Ratio2.22
Dividend
Industry RankSector Rank
Dividend Yield 0.79%
Yearly Dividend1.63
Dividend Growth(5Y)N/A
DP11.01%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)5.91%
PT rev (3m)12.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.2%
EPS NY rev (1m)0%
EPS NY rev (3m)15.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 14.82
Fwd PE 20.49
P/S 3.25
P/FCF 16.75
P/OCF 9.57
P/B 10.26
P/tB 10.26
EV/EBITDA 9.59
EPS(TTM)15.75
EY6.75%
EPS(NY)11.39
Fwd EY4.88%
FCF(TTM)13.93
FCFY5.97%
OCF(TTM)24.39
OCFY10.45%
SpS71.71
BVpS22.74
TBVpS22.74
PEG (NY)N/A
PEG (5Y)0.18
Profitability
Industry RankSector 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 RankSector 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 2
F-Score5
WACC7.99%
ROIC/WACC1.84
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-71.14%
EPS Next 2Y-47.03%
EPS Next 3Y-32.19%
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-22.16%
Revenue Next 2Y-4.91%
Revenue Next 3Y2.36%
Revenue Next 5Y1.02%
EBIT growth 1Y-65.5%
EBIT growth 3Y80.43%
EBIT growth 5Y48.68%
EBIT Next Year-44.33%
EBIT Next 3Y-13.53%
EBIT Next 5Y-9.15%
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%