Cheniere Energy Partners, L.P. Fundamental Analysis (NYSE: CQP)
Cheniere Energy Partners, L.P. (NYSE: CQP) shows strong financial fundamentals with a PE ratio of 11.47, profit margin of 27.23%, and ROE of 1.04%. The company generates $11.5B in annual revenue with strong year-over-year growth of 23.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CQP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCQP demonstrates superior asset utilization.
Valuation Score
ExcellentCQP trades at attractive valuation levels.
Growth Score
ExcellentCQP delivers strong and consistent growth momentum.
Financial Health Score
ModerateCQP shows balanced financial health with some risks.
Profitability Score
ExcellentCQP achieves industry-leading margins.
Key Financial Metrics
Is CQP Expensive or Cheap?
P/E Ratio
CQP trades at 11.47 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CQP's PEG of 0.26 indicates potential undervaluation.
Price to Book
The market values Cheniere Energy Partners, L.P. at 8.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.56 times EBITDA. This is generally considered low.
How Well Does CQP Make Money?
Net Profit Margin
For every $100 in sales, Cheniere Energy Partners, L.P. keeps $27.23 as profit after all expenses.
Operating Margin
Core operations generate 32.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.04 in profit for every $100 of shareholder equity.
ROA
Cheniere Energy Partners, L.P. generates $17.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cheniere Energy Partners, L.P. generates strong operating cash flow of $3.15B, reflecting robust business health.
Free Cash Flow
Cheniere Energy Partners, L.P. generates strong free cash flow of $3.26B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.73 in free cash annually.
FCF Yield
CQP converts 9.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.04
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How CQP Stacks Against Its Sector Peers
| Metric | CQP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.47 | 22.27 | Better (Cheaper) |
| ROE | 103.64% | 1228.00% | Weak |
| Net Margin | 27.23% | 1247.00% | Weak |
| Debt/Equity | 3.91 | 2.78 | Weak (High Leverage) |
| Current Ratio | 1.22 | 5.40 | Neutral |
| ROA | 17.70% | 4396.00% | Weak |
CQP outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cheniere Energy Partners, L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.92%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
108.31%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
30.42%
Industry Style: Cyclical, Value, Commodity
High Growth