NEW FORTRESS ENERGY INC (NFE) Stock Fundamental Analysis
NASDAQ:NFE - Nasdaq - US6443931000 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to NFE. NFE was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. NFE may be in some trouble as it scores bad on both profitability and health. NFE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NFE had positive earnings in the past year.
NFE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NFE reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: NFE reported negative operating cash flow in multiple years.
1.2 Ratios
NFE has a worse Return On Assets (1.58%) than 69.46% of its industry peers.
NFE has a Return On Equity (11.40%) which is comparable to the rest of the industry.
NFE has a Return On Invested Capital (6.22%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NFE is significantly below the industry average of 28.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 11.4% | ||
| ROIC | 6.22% |
ROA(3y)3.05%
ROA(5y)-0.68%
ROE(3y)17.97%
ROE(5y)-7.11%
ROIC(3y)7.94%
ROIC(5y)N/A
1.3 Margins
NFE has a Profit Margin of 7.74%. This is comparable to the rest of the industry: NFE outperforms 41.87% of its industry peers.
NFE has a better Operating Margin (29.24%) than 62.07% of its industry peers.
The Gross Margin of NFE (61.23%) is better than 66.50% of its industry peers.
NFE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.24% | ||
| PM (TTM) | 7.74% | ||
| GM | 61.23% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.67%
GM growth 5Y36.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NFE is creating some value.
NFE has less shares outstanding than it did 1 year ago.
NFE has more shares outstanding than it did 5 years ago.
NFE has a worse debt/assets ratio than last year.
2.2 Solvency
NFE has an Altman-Z score of 0.46. This is a bad value and indicates that NFE is not financially healthy and even has some risk of bankruptcy.
NFE has a worse Altman-Z score (0.46) than 69.95% of its industry peers.
NFE has a Debt/Equity ratio of 4.25. This is a high value indicating a heavy dependency on external financing.
NFE has a Debt to Equity ratio of 4.25. This is amonst the worse of the industry: NFE underperforms 91.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC1
WACC6.2%
2.3 Liquidity
NFE has a Current Ratio of 0.38. This is a bad value and indicates that NFE is not financially healthy enough and could expect problems in meeting its short term obligations.
NFE has a Current ratio of 0.38. This is amonst the worse of the industry: NFE underperforms 93.10% of its industry peers.
NFE has a Quick Ratio of 0.38. This is a bad value and indicates that NFE is not financially healthy enough and could expect problems in meeting its short term obligations.
NFE has a Quick ratio of 0.35. This is amonst the worse of the industry: NFE underperforms 92.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The earnings per share for NFE have decreased strongly by -34.13% in the last year.
Looking at the last year, NFE shows a quite strong growth in Revenue. The Revenue has grown by 11.04% in the last year.
NFE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 84.69% yearly.
EPS 1Y (TTM)-34.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-83.33%
Revenue 1Y (TTM)11.04%
Revenue growth 3Y74.82%
Revenue growth 5Y84.69%
Sales Q2Q%10.29%
3.2 Future
The Earnings Per Share is expected to grow by 16.83% on average over the next years. This is quite good.
Based on estimates for the next years, NFE will show a quite strong growth in Revenue. The Revenue will grow by 15.76% on average per year.
EPS Next Y-88.15%
EPS Next 2Y-51.28%
EPS Next 3Y-38.63%
EPS Next 5Y16.83%
Revenue Next Year-1.31%
Revenue Next 2Y12.27%
Revenue Next 3Y14.51%
Revenue Next 5Y15.76%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.15, which indicates a very decent valuation of NFE.
73.40% of the companies in the same industry are more expensive than NFE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.62. NFE is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 16.57, the valuation of NFE can be described as correct.
NFE's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, NFE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 16.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NFE indicates a slightly more expensive valuation: NFE is more expensive than 63.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.92 |
4.3 Compensation for Growth
NFE's earnings are expected to decrease with -38.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-51.28%
EPS Next 3Y-38.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, NFE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.67, NFE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, NFE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
NFE has been paying a dividend for over 5 years, so it has already some track record.
NFE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
NFE pays out 44.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.86%
EPS Next 2Y-51.28%
EPS Next 3Y-38.63%
11.17
-0.88 (-7.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners70.02%
Inst Owner Change-80.75%
Ins Owners39.21%
Ins Owner Change0%
Market Cap3.00B
Analysts80
Price Target18.94 (69.56%)
Short Float %18.87%
Short Ratio6.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend3.5
Dividend Growth(5Y)N/A
DP44.86%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)359.4%
Min EPS beat(2)-673.77%
Max EPS beat(2)1392.56%
EPS beat(4)3
Avg EPS beat(4)188.72%
Min EPS beat(4)-673.77%
Max EPS beat(4)1392.56%
EPS beat(8)6
Avg EPS beat(8)94.96%
EPS beat(12)7
Avg EPS beat(12)47.05%
EPS beat(16)7
Avg EPS beat(16)-469.22%
Revenue beat(2)1
Avg Revenue beat(2)-5.05%
Min Revenue beat(2)-16.78%
Max Revenue beat(2)6.69%
Revenue beat(4)3
Avg Revenue beat(4)2.78%
Min Revenue beat(4)-16.78%
Max Revenue beat(4)14.16%
Revenue beat(8)4
Avg Revenue beat(8)-4.04%
Revenue beat(12)6
Avg Revenue beat(12)1.41%
Revenue beat(16)6
Avg Revenue beat(16)-3.19%
PT rev (1m)4.63%
PT rev (3m)8.76%
EPS NQ rev (1m)35.52%
EPS NQ rev (3m)-19.16%
EPS NY rev (1m)-15.97%
EPS NY rev (3m)-37.54%
Revenue NQ rev (1m)5.81%
Revenue NQ rev (3m)21.53%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 16.57 | ||
| P/S | 1.23 | ||
| P/FCF | N/A | ||
| P/OCF | 6.92 | ||
| P/B | 1.81 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)1.37
EY12.26%
EPS(NY)0.67
Fwd EY6.03%
FCF(TTM)-8.13
FCFYN/A
OCF(TTM)1.61
OCFY14.45%
SpS9.09
BVpS6.18
TBVpS2.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 11.4% | ||
| ROCE | 7.72% | ||
| ROIC | 6.22% | ||
| ROICexc | 6.28% | ||
| ROICexgc | 7.02% | ||
| OM | 29.24% | ||
| PM (TTM) | 7.74% | ||
| GM | 61.23% | ||
| FCFM | N/A |
ROA(3y)3.05%
ROA(5y)-0.68%
ROE(3y)17.97%
ROE(5y)-7.11%
ROIC(3y)7.94%
ROIC(5y)N/A
ROICexc(3y)8.45%
ROICexc(5y)N/A
ROICexgc(3y)9.73%
ROICexgc(5y)N/A
ROCE(3y)9.72%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.67%
GM growth 5Y36.42%
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.85 | ||
| Cap/Depr | 1412.86% | ||
| Cap/Sales | 107.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 0.46 |
F-Score4
WACC6.2%
ROIC/WACC1
Cap/Depr(3y)1035.88%
Cap/Depr(5y)1592.8%
Cap/Sales(3y)75.24%
Cap/Sales(5y)91.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-83.33%
EPS Next Y-88.15%
EPS Next 2Y-51.28%
EPS Next 3Y-38.63%
EPS Next 5Y16.83%
Revenue 1Y (TTM)11.04%
Revenue growth 3Y74.82%
Revenue growth 5Y84.69%
Sales Q2Q%10.29%
Revenue Next Year-1.31%
Revenue Next 2Y12.27%
Revenue Next 3Y14.51%
Revenue Next 5Y15.76%
EBIT growth 1Y-27.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-0.5%
EBIT Next 3Y11.64%
EBIT Next 5Y21.8%
FCF growth 1Y-207.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.44%
OCF growth 3YN/A
OCF growth 5YN/A