Cheniere Energy, Inc.
Cheniere Energy, Inc. Fundamental Analysis
Cheniere Energy, Inc. (LNG) shows strong financial fundamentals with a PE ratio of 10.19, profit margin of 27.01%, and ROE of 79.10%. The company generates $19.8B in annual revenue with weak year-over-year growth of -22.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LNG's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLNG demonstrates superior asset utilization.
Valuation Score
ExcellentLNG trades at attractive valuation levels.
Growth Score
WeakLNG faces weak or negative growth trends.
Financial Health Score
WeakLNG carries high financial risk with limited liquidity.
Profitability Score
ExcellentLNG achieves industry-leading margins.
Key Financial Metrics
Is LNG Expensive or Cheap?
P/E Ratio
LNG trades at 10.19 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LNG's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values Cheniere Energy, Inc. at 6.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.50 times EBITDA. This is generally considered low.
How Well Does LNG Make Money?
Net Profit Margin
For every $100 in sales, Cheniere Energy, Inc. keeps $27.01 as profit after all expenses.
Operating Margin
Core operations generate 30.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $79.10 in profit for every $100 of shareholder equity.
ROA
Cheniere Energy, Inc. generates $10.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cheniere Energy, Inc. generates strong operating cash flow of $5.56B, reflecting robust business health.
Free Cash Flow
Cheniere Energy, Inc. generates strong free cash flow of $4.82B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $22.38 in free cash annually.
FCF Yield
LNG converts 8.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.79
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How LNG Stacks Against Its Sector Peers
| Metric | LNG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.19 | 19.95 | Better (Cheaper) |
| ROE | 79.10% | 963.00% | Weak |
| Net Margin | 27.01% | -48347.00% (disorted) | Strong |
| Debt/Equity | 3.61 | -0.54 (disorted) | Distorted |
| Current Ratio | 0.94 | 4.82 | Weak Liquidity |
| ROA | 10.85% | -2296.00% (disorted) | Strong |
LNG outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cheniere Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.26%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
462.94%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
230.09%
Industry Style: Cyclical, Value, Commodity
High Growth