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FLNG

Flex LNG OB:FLNG Stock Report

Last Price

kr281.20

Market Cap

kr14.9b

7D

16.4%

1Y

125.5%

Updated

26 Jun, 2022

Data

Company Financials +
FLNG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance5/6
Financial Health2/6
Dividends3/6

FLNG Stock Overview

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

Flex LNG Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Flex LNG
Historical stock prices
Current Share Pricekr281.20
52 Week Highkr305.00
52 Week Lowkr111.60
Beta0.35
1 Month Change9.59%
3 Month Change17.36%
1 Year Change125.50%
3 Year Change179.52%
5 Year Change167.81%
Change since IPO81.42%

Recent News & Updates

May 04
FLEX LNG Ltd.'s (OB:FLNG) Intrinsic Value Is Potentially 63% Above Its Share Price

FLEX LNG Ltd.'s (OB:FLNG) Intrinsic Value Is Potentially 63% Above Its Share Price

In this article we are going to estimate the intrinsic value of FLEX LNG Ltd. ( OB:FLNG ) by taking the expected future...

Mar 30
Does FLEX LNG (OB:FLNG) Have A Healthy Balance Sheet?

Does FLEX LNG (OB:FLNG) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

FLNGNO Oil and GasNO Market
7D16.4%-7.1%-3.4%
1Y125.5%64.4%3.2%

Return vs Industry: FLNG exceeded the Norwegian Oil and Gas industry which returned 64.4% over the past year.

Return vs Market: FLNG exceeded the Norwegian Market which returned 3.2% over the past year.

Price Volatility

Is FLNG's price volatile compared to industry and market?
FLNG volatility
FLNG Average Weekly Movement9.2%
Oil and Gas Industry Average Movement7.6%
Market Average Movement7.2%
10% most volatile stocks in NO Market12.7%
10% least volatile stocks in NO Market4.0%

Stable Share Price: FLNG is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: FLNG's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20068Oystein Kalleklevhttps://www.flexlng.com

Flex LNG Ltd., through its subsidiaries, engages in the seaborne transportation of liquefied natural gas (LNG) worldwide. As of February 16, 2022, it owned and operated nine M-type electronically controlled gas injection LNG carriers; and four vessels with generation X dual fuel propulsion systems. It also provides chartering and management services.

Flex LNG Fundamentals Summary

How do Flex LNG's earnings and revenue compare to its market cap?
FLNG fundamental statistics
Market CapUS$1.51b
Earnings (TTM)US$170.74m
Revenue (TTM)US$336.76m

8.9x

P/E Ratio

4.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FLNG income statement (TTM)
RevenueUS$336.76m
Cost of RevenueUS$64.73m
Gross ProfitUS$272.03m
Other ExpensesUS$101.29m
EarningsUS$170.74m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 31, 2022

Earnings per share (EPS)3.21
Gross Margin80.78%
Net Profit Margin50.70%
Debt/Equity Ratio177.3%

How did FLNG perform over the long term?

See historical performance and comparison

Dividends

10.5%

Current Dividend Yield

83%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is FLNG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FLNG?

Other financial metrics that can be useful for relative valuation.

FLNG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.3x
Enterprise Value/EBITDA10.9x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does FLNG's PE Ratio compare to its peers?

FLNG PE Ratio vs Peers
The above table shows the PE ratio for FLNG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average141.7x

Price-To-Earnings vs Peers: FLNG is good value based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (141.7x).


Price to Earnings Ratio vs Industry

How does FLNG's PE Ratio compare vs other companies in the Oil and Gas Industry?

Price-To-Earnings vs Industry: FLNG is good value based on its Price-To-Earnings Ratio (8.9x) compared to the Norwegian Oil and Gas industry average (9x)


Price to Earnings Ratio vs Fair Ratio

What is FLNG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FLNG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.9x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: FLNG is good value based on its Price-To-Earnings Ratio (8.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).


Share Price vs Fair Value

What is the Fair Price of FLNG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FLNG (NOK281.2) is trading below our estimate of fair value (NOK487.93)

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


Price to Earnings Growth Ratio

PEG Ratio: FLNG is poor value based on its PEG Ratio (3.3x)


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Future Growth

How is Flex LNG forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLNG's forecast earnings growth (2.7% per year) is above the savings rate (1.1%).

Earnings vs Market: FLNG's earnings (2.7% per year) are forecast to grow faster than the Norwegian market (1.6% per year).

High Growth Earnings: FLNG's earnings are forecast to grow, but not significantly.

Revenue vs Market: FLNG's revenue (4.7% per year) is forecast to grow faster than the Norwegian market (0.3% per year).

High Growth Revenue: FLNG's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLNG's Return on Equity is forecast to be high in 3 years time (20%)


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Past Performance

How has Flex LNG performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


81.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FLNG has high quality earnings.

Growing Profit Margin: FLNG's current net profit margins (50.7%) are higher than last year (33.8%).


Past Earnings Growth Analysis

Earnings Trend: FLNG has become profitable over the past 5 years, growing earnings by 81.8% per year.

Accelerating Growth: FLNG's earnings growth over the past year (143.2%) exceeds its 5-year average (81.8% per year).

Earnings vs Industry: FLNG earnings growth over the past year (143.2%) exceeded the Oil and Gas industry -27.5%.


Return on Equity

High ROE: FLNG's Return on Equity (18.9%) is considered low.


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Financial Health

How is Flex LNG's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FLNG's short term assets ($193.8M) exceed its short term liabilities ($123.8M).

Long Term Liabilities: FLNG's short term assets ($193.8M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: FLNG's net debt to equity ratio (158.1%) is considered high.

Reducing Debt: FLNG's debt to equity ratio has increased from 4.1% to 177.3% over the past 5 years.

Debt Coverage: FLNG's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: FLNG's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


10.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FLNG's dividend (10.53%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.74%).

High Dividend: FLNG's dividend (10.53%) is in the top 25% of dividend payers in the Norwegian market (6.94%)


Stability and Growth of Payments

Stable Dividend: FLNG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FLNG's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (82.5%), FLNG's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (189.1%), FLNG's dividend payments are not well covered by cash flows.


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Management

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

3.8yrs

Average management tenure


CEO

Oystein Kalleklev (41 yo)

3.83yrs

Tenure

Mr. Oystein M. Kalleklev is Chief Executive Officer and Principal Executive Officer of Flex LNG Management and FLEX LNG Ltd since August 2018. He serves as Chief Financial Officer since October 2, 2017 unt...


Leadership Team

Experienced Management: FLNG's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: FLNG's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

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.


Top Shareholders

Company Information

Flex LNG Ltd.'s 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
  • Implied Market Cap: kr14.940b
  • Shares outstanding: 53.13m
  • Website: https://www.flexlng.com

Number of Employees


Location

  • Flex LNG Ltd.
  • Par-La-Ville Place
  • 14 Par-La-Ville Road
  • Hamilton
  • HM08
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.