DB:G2O

Stock Analysis Report

Executive Summary

Golar LNG Limited, a midstream liquefied natural gas (LNG) company, engages in the transportation, regasification, and liquefaction of LNG.

Rewards

Trading at 14.1% below its fair value

Earnings are forecast to grow 83.94% per year

Risk Analysis

No risks detected for G2O from our risk checks.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Golar LNG's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: G2O has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.9%

G2O

1.6%

DE Oil and Gas

0.5%

DE Market


1 Year Return

-42.5%

G2O

80.3%

DE Oil and Gas

15.5%

DE Market

Return vs Industry: G2O underperformed the German Oil and Gas industry which returned 48.3% over the past year.

Return vs Market: G2O underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

G2OIndustryMarket
7 Day-10.9%1.6%0.5%
30 Day-1.7%-4.4%1.4%
90 Day-16.7%32.9%5.3%
1 Year-41.6%-42.5%86.5%80.3%19.2%15.5%
3 Year-53.9%-55.6%28.4%17.4%15.7%5.5%
5 Year-52.3%-57.1%329.8%261.1%27.3%10.1%

Price Volatility Vs. Market

How volatile is Golar LNG's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Golar LNG undervalued compared to its fair value and its price relative to the market?

17.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: G2O (€12.9) is trading below our estimate of fair value (€15.02)

Significantly Below Fair Value: G2O is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: G2O is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: G2O is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate G2O's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: G2O is good value based on its PB Ratio (1x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Golar LNG forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

83.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: G2O is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: G2O is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: G2O's is expected to become profitable in the next 3 years.

Revenue vs Market: G2O's revenue (5.1% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: G2O's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: G2O's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has Golar LNG performed over the past 5 years?

-23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G2O is currently unprofitable.

Growing Profit Margin: G2O is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: G2O is unprofitable, and losses have increased over the past 5 years at a rate of -23.7% per year.

Accelerating Growth: Unable to compare G2O's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: G2O is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-5.1%).


Return on Equity

High ROE: G2O has a negative Return on Equity (-28.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Golar LNG's financial position?


Financial Position Analysis

Short Term Liabilities: G2O's short term assets ($517.5M) do not cover its short term liabilities ($1.3B).

Long Term Liabilities: G2O's short term assets ($517.5M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: G2O's debt to equity ratio (151.4%) is considered high.

Reducing Debt: G2O's debt to equity ratio has increased from 44.7% to 151.4% over the past 5 years.


Balance Sheet

Inventory Level: G2O has a high level of physical assets or inventory.

Debt Coverage by Assets: G2O's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: G2O has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if G2O has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Golar LNG's current dividend yield, its reliability and sustainability?

2.81%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.5%industryaverage5.8%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate G2O's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate G2O's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if G2O's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if G2O's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: G2O is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of G2O's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Golar LNG's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Iain Ross (57yo)

2.3yrs

Tenure

0

Mr. Iain Ross serves as Chief Executive Officer of Golar Management Limited since September 21, 2017. Mr. Ross served as Group Managing Director of Development at WorleyParsons Limited until May 1, 2015. B ...


Management Age and Tenure

2.1yrs

Average Tenure

57yo

Average Age

Experienced Management: G2O's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

56yo

Average Age

Experienced Board: G2O's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Georgina Sousa (68yo)

    Company Secretary & Director

    • Tenure: 0.3yrs
  • Graham Robjohns (54yo)

    Deputy CEO & CFO of Golar Management Ltd.

    • Tenure: 1.8yrs
  • Iain Ross (57yo)

    Chief Executive Officer of Golar Management Ltd

    • Tenure: 2.3yrs
  • Doug Arnell (53yo)

    Senior Advisor

    • Tenure: 3.7yrs
  • Øistein Dahl (58yo)

    Chief Operating Officer of Golar Management Ltd.

    • Tenure: 7.8yrs
  • Stuart Buchanan

    Head of Investor Relations

    • Olve Skjeggedal

      Chief Technical Officer of Golar Management Ltd

      • Tenure: 1yrs

    Board Members

    • Tor Trøim (56yo)

      Chairman of the Board

      • Tenure: 2.3yrs
    • Georgina Sousa (68yo)

      Company Secretary & Director

      • Tenure: 0.3yrs
    • Niels Stolt-Nielsen (54yo)

      Director

      • Tenure: 4.3yrs
    • Dan Rabun (64yo)

      Independent Director

      • Tenure: 4.9yrs
    • Carl Steen (68yo)

      Independent Director

      • Tenure: 5yrs
    • Thorleif Egeli (55yo)

      Director

      • Tenure: 1.3yrs
    • Lori Naess (48yo)

      Independent Director

      • Tenure: 3.9yrs

    Company Information

    Golar LNG Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Golar LNG Limited
    • Ticker: G2O
    • Exchange: DB
    • Founded: 1946
    • Industry: Oil and Gas Storage and Transportation
    • Sector: Energy
    • Market Cap: US$1.304b
    • Listing Market Cap: US$1.177b
    • Shares outstanding: 98.30m
    • Website: https://www.golarlng.com

    Number of Employees


    Location

    • Golar LNG Limited
    • S.E. Pearman Building
    • 2nd Floor
    • Hamilton
    • HM 11
    • Bermuda

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    GLNGNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 2001
    GOLOTCNO (Norway OTC)YesCommon SharesNONOKJun 2001
    G2ODB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2001
    0HDYLSE (London Stock Exchange)YesCommon SharesGBUSDJun 2001
    GLNG NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJun 2001

    Biography

    Golar LNG Limited, a midstream liquefied natural gas (LNG) company, engages in the transportation, regasification, and liquefaction of LNG. It operates through three segments: Vessel operations, Floating Liquefaction Natural Gas Vessel (FLNG), and Power. The company engages in the acquisition, ownership, operation, and chartering of LNG carriers and floating storage regasification units (FSRUs); and the development of LNG projects. Golar LNG Limited owns and operates a fleet of 16 LNG carriers, 8 FSRUs, and 1 FLNG. The company was founded in 1946 and is headquartered in Hamilton, Bermuda. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/22 21:11
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.