Golar LNG Limited
Golar LNG Limited Fundamental Analysis
Golar LNG Limited (GLNG) shows weak financial fundamentals with a PE ratio of 66.85, profit margin of 16.69%, and ROE of 3.45%. The company generates $0.4B in annual revenue with weak year-over-year growth of -12.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GLNG's fundamental strength across five key dimensions:
Efficiency Score
WeakGLNG struggles to generate sufficient returns from assets.
Valuation Score
WeakGLNG trades at a premium to fair value.
Growth Score
WeakGLNG faces weak or negative growth trends.
Financial Health Score
ModerateGLNG shows balanced financial health with some risks.
Profitability Score
WeakGLNG struggles to sustain strong margins.
Key Financial Metrics
Is GLNG Expensive or Cheap?
P/E Ratio
GLNG trades at 66.85 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GLNG's PEG of 5.44 indicates potential overvaluation.
Price to Book
The market values Golar LNG Limited at 2.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.05 times EBITDA. This signals the market has high growth expectations.
How Well Does GLNG Make Money?
Net Profit Margin
For every $100 in sales, Golar LNG Limited keeps $16.69 as profit after all expenses.
Operating Margin
Core operations generate 34.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.45 in profit for every $100 of shareholder equity.
ROA
Golar LNG Limited generates $1.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Golar LNG Limited generates strong operating cash flow of $440.47M, reflecting robust business health.
Free Cash Flow
Golar LNG Limited generates weak or negative free cash flow of $-434.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.24 in free cash annually.
FCF Yield
GLNG converts -9.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
66.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How GLNG Stacks Against Its Sector Peers
| Metric | GLNG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 66.85 | 19.95 | Worse (Expensive) |
| ROE | 3.45% | 963.00% | Weak |
| Net Margin | 16.69% | -48347.00% (disorted) | Strong |
| Debt/Equity | 1.50 | -0.54 (disorted) | Distorted |
| Current Ratio | 2.55 | 4.82 | Strong Liquidity |
| ROA | 1.23% | -2296.00% (disorted) | Weak |
GLNG outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Golar LNG Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-43.95%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
123.17%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
188.54%
Industry Style: Cyclical, Value, Commodity
High Growth