OB:FLNG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential and fair value.

Risks

  • Flex LNG has significant price volatility in the past 3 months.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

6.2%

OB:FLNG

3.8%

NO Oil and Gas

2.4%

NO Market


1 Year Return

-21.7%

OB:FLNG

-26.9%

NO Oil and Gas

-14.2%

NO Market

FLNG outperformed the Oil and Gas industry which returned -28.6% over the past year.

FLNG underperformed the Market in Norway which returned -14.6% over the past year.


Share holder returns

FLNGIndustryMarket
7 Day6.2%3.8%2.4%
30 Day-16.4%-6.5%-3.1%
90 Day-24.2%-10.9%-4.4%
1 Year-21.7%-21.7%-23.3%-26.9%-9.3%-14.2%
3 Yearn/a39.8%22.6%38.7%20.4%
5 Yearn/a17.5%-7.0%38.0%6.6%

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 based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Flex LNG's share price is below the future cash flow value, and at a moderate discount (> 20%).

Flex LNG's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Flex LNG is overvalued based on earnings compared to the NO Oil and Gas industry average.

Flex LNG is overvalued based on earnings compared to the Norway market.


Price Based on Expected Growth

Flex LNG is good value based on expected growth next year.


Price Based on Value of Assets

Flex LNG is overvalued based on assets compared to the NO Oil and Gas industry average.


Next Steps

Future Growth

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

83.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Flex LNG's revenue is expected to grow significantly at over 20% yearly.

Flex LNG's earnings are expected to grow significantly at over 20% yearly.

Flex LNG's revenue growth is expected to exceed the Norway market average.

Flex LNG's earnings growth is expected to exceed the Norway market average.

Flex LNG's earnings growth is expected to exceed the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

Flex LNG is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Flex LNG performed over the past 5 years?

-65.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Flex LNG's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Flex LNG has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Flex LNG has become profitable in the last year making it difficult to compare the NO Oil and Gas industry average.


Return on Equity

Flex LNG has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Flex LNG used its assets less efficiently than the NO Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Flex LNG has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Flex LNG's financial position?


Financial Position Analysis

Flex LNG's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Flex LNG's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Flex LNG's level of debt (69.4%) compared to net worth is high (greater than 40%).

Unable to establish if Flex LNG's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (6.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

13.39%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Flex LNG's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Flex LNG's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Flex LNG has not reported any payouts.

Unable to verify if Flex LNG's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Flex LNG has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Øystein Kalleklev (39yo)

1.0yrs

Tenure

0

Mr. Øystein M. Kalleklev has been Chief 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 shippi ...


Management Age and Tenure

1.0yrs

Average Tenure

The average tenure for the Flex LNG management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

55.5yo

Average Age

The average tenure for the Flex LNG board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Flex LNG individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$108,49812 Jul 19
H. Foss
EntityIndividual
Role
Senior Key Executive
Head of Commercial
Shares1,014
Max PriceUS$107.00
BuyUS$475,90014 Jun 19
Øystein Kalleklev
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares5,000
Max PriceUS$95.18
BuyUS$205,00028 Feb 19
Øystein Kalleklev
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares2,000
Max PriceUS$102.50
BuyUS$204,00028 Feb 19
Harald Gurvin
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceUS$102.00
BuyUS$436,10010 Jan 19
Øystein Kalleklev
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares3,500
Max PriceUS$124.60
BuyUS$821,459,96711 Oct 18
Greenwich Holdings Ltd.
EntityCompany
Shares5,764,631.6
Max PriceUS$142.50

Ownership Breakdown


Management Team

  • Thomas Thorkildsen

    Senior Vice President of Business Development

    • Tenure: 2.5yrs
  • Harald Gurvin (44yo)

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Øystein Kalleklev (39yo)

    Chief Executive Officer

    • Tenure: 1.0yrs
  • H. Foss

    Head of Commercial

    • Tenure: 1.0yrs
  • Thorolf Aurstad

    Senior Vice President of Finance

    • Tenure: 0.0yrs
  • James Ayers

    Company Secretary

    • Tenure: 0.0yrs

Board Members

  • Ola Lorentzon (70yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$40.00k
  • David McManus (66yo)

    Chairman of the Board

    • Tenure: 7.9yrs
    • Compensation: US$100.00k
  • Nikolai Grigoriev (45yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$40.00k
  • Marius Hermansen (40yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: US$40.00k

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: kr4.978b
  • Shares outstanding: 54.10m
  • Website: https://www.flexlng.com

Number of Employees


Location

  • Flex LNG Ltd.
  • Par-La-Ville Place
  • 4th Floor
  • Hamilton
  • 1593
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0RQ8LSE (London Stock Exchange)YesOrdinary SharesGBNOKJun 2017
FLNGNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDJun 2017
FLNGOB (Oslo Bors)YesOrdinary SharesNONOKJun 2017
0QQADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2017

Biography

Flex LNG Ltd., through its subsidiaries, engages in the transportation of liquefied natural gas worldwide. The company has a total fleet of four LNG carriers. It also provides chartering and management ser ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 22:06
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
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.