OB:FLNG

Stock Analysis Report

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Executive Summary

Flex LNG Ltd., through its subsidiaries, engages in the seaborne transportation of liquefied natural gas (LNG) worldwide. More Details


Snowflake Analysis

High growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FLNG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

FLNG

-1.7%

NO Oil and Gas

-0.9%

NO Market


1 Year Return

-30.5%

FLNG

-25.9%

NO Oil and Gas

-11.6%

NO Market

Return vs Industry: FLNG underperformed the Norwegian Oil and Gas industry which returned -24.2% over the past year.

Return vs Market: FLNG underperformed the Norwegian Market which returned -6.4% over the past year.


Shareholder returns

FLNGIndustryMarket
7 Day7.9%-1.7%-0.9%
30 Day25.9%-7.7%-0.8%
90 Day28.0%-5.8%2.1%
1 Year-28.4%-30.5%-21.7%-25.9%-8.7%-11.6%
3 Year-29.9%-32.0%-7.9%-19.7%1.5%-9.9%
5 Year-35.9%-37.8%22.7%-2.6%44.1%14.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLNG (NOK65.3) is trading below our estimate of fair value (NOK432)

Significantly Below Fair Value: FLNG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FLNG is poor value based on its PE Ratio (136.6x) compared to the NO Oil and Gas industry average (4.6x).

PE vs Market: FLNG is poor value based on its PE Ratio (136.6x) compared to the Norwegian market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: FLNG is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: FLNG's PB Ratio (0.5x) is in line with the NO Oil and Gas industry average.


Next Steps

Future Growth

How is Flex LNG forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

112.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLNG's forecast earnings growth (112.9% per year) is above the savings rate (1.6%).

Earnings vs Market: FLNG's earnings (112.9% per year) are forecast to grow faster than the Norwegian market (33.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FLNG's revenue (29.8% per year) is forecast to grow faster than the Norwegian market (5.4% per year).

High Growth Revenue: FLNG's revenue (29.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLNG's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Flex LNG performed over the past 5 years?

44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLNG has high quality earnings.

Growing Profit Margin: FLNG's current net profit margins (1.9%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: FLNG has become profitable over the past 5 years, growing earnings by 44.2% per year.

Accelerating Growth: FLNG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FLNG had negative earnings growth (-69.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (699.5%).


Return on Equity

High ROE: FLNG's Return on Equity (0.3%) is considered low.


Next Steps

Financial Health

How is Flex LNG's financial position?


Financial Position Analysis

Short Term Liabilities: FLNG's short term assets ($136.3M) exceed its short term liabilities ($77.1M).

Long Term Liabilities: FLNG's short term assets ($136.3M) do not cover its long term liabilities ($726.3M).


Debt to Equity History and Analysis

Debt Level: FLNG's debt to equity ratio (43.1%) is considered high.

Reducing Debt: FLNG's debt to equity ratio has increased from 3.4% to 43.1% over the past 5 years.

Debt Coverage: FLNG's debt is not well covered by operating cash flow (18.2%).

Interest Coverage: FLNG's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Flex LNG current dividend yield, its reliability and sustainability?

7.15%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: FLNG is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Øystein Kalleklev (40 yo)

2.17yrs

Tenure

Mr. Øystein M. Kalleklev has been Principal Executive Officer of Flex LNG Ltd since August 2018 and served as Chief Financial Officer since October 2, 2017. Mr. Kalleklev has extensive experience in the sh ...


Leadership Team

NamePositionTenureCompensationOwnership
Øystein Kalleklev
Principal Executive Officer2.17yrsno data0.088%
$ 3.1m
Harald Gurvin
Principal Financial Officer1.75yrsno data0.031%
$ 1.1m
Jannicke Eilertsen
Compliance Officer0.75yrno datano data
Thomas Thorkildsen
Senior Vice President of Business Development3.67yrsno datano data
H. Foss
Head of Commercial & Operation Flex LNG Management AS2.17yrsno data0%
$ 0
Thorolf Aurstad
Senior Vice President of Financeno datano datano data
Ben Martin
Chief Commercial Officer0.75yrno datano data
Lars Pedersen
Chief Technical Officer of Frontline Management & MD of Flex Fleet Managementno datano datano data
James Ayers
Company Secretaryno datano datano data

2.0yrs

Average Tenure

Experienced Management: FLNG's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ola Lorentzon
Independent Director3.33yrsUS$40.00k0.0059%
$ 207.1k
David McManus
Independent Chairman of the Board9.08yrsUS$100.00k0.17%
$ 6.0m
Nikolai Grigoriev
Independent Director3.08yrsUS$40.00k0.045%
$ 1.6m
Marius Hermansen
Independent Director4.83yrsUS$40.00k0.013%
$ 468.9k
Joao Saraiva E Silva
Director1.08yrsUS$12.06kno data

3.3yrs

Average Tenure

46yo

Average Age

Experienced Board: FLNG's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FLNG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Flex LNG Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Flex LNG Ltd.
  • Ticker: FLNG
  • Exchange: OB
  • Founded: 2006
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: kr3.533b
  • Shares outstanding: 54.11m
  • Website: https://www.flexlng.com

Number of Employees


Location

  • Flex LNG Ltd.
  • Par-La-Ville Place
  • 4th Floor
  • Hamilton
  • HM08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0RQ8LSE (London Stock Exchange)YesOrdinary SharesGBNOKApr 2007
FLNGNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDApr 2007
FLNGOB (Oslo Bors)YesOrdinary SharesNONOKApr 2007
FLNGOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKApr 2007
0QQADB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2007

Biography

Flex LNG Ltd., through its subsidiaries, engages in the seaborne transportation of liquefied natural gas (LNG) worldwide. As of December 31, 2019, it owned and operated six LNG carriers. It also provides c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 20:46
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.