NasdaqGS:GLNG

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Moderate 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: GLNG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.5%

GLNG

17.5%

US Oil and Gas

12.5%

US Market


1 Year Return

-62.0%

GLNG

-57.2%

US Oil and Gas

-12.7%

US Market

Return vs Industry: GLNG underperformed the US Oil and Gas industry which returned -57.2% over the past year.

Return vs Market: GLNG underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

GLNGIndustryMarket
7 Day15.5%17.5%12.5%
30 Day-37.7%-36.4%-14.7%
90 Day-43.8%-52.2%-21.5%
1 Year-61.7%-62.0%-55.5%-57.2%-10.9%-12.7%
3 Year-70.2%-71.2%-52.3%-56.9%12.6%5.4%
5 Year-74.6%-76.9%-55.6%-62.5%31.9%17.5%

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

Valuation

Is Golar 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: GLNG ($7.99) is trading below our estimate of fair value ($22.37)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GLNG is overvalued based on its PB Ratio (0.5x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Golar LNG forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

106.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLNG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: GLNG's revenue (4.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GLNG's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GLNG's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Golar LNG performed over the past 5 years?

-18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLNG is currently unprofitable.

Growing Profit Margin: GLNG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GLNG is unprofitable, and losses have increased over the past 5 years at a rate of -18.2% per year.

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

Earnings vs Industry: GLNG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-11.4%).


Return on Equity

High ROE: GLNG has a negative Return on Equity (-6.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Golar LNG's financial position?


Financial Position Analysis

Short Term Liabilities: GLNG's short term assets ($401.5M) do not cover its short term liabilities ($1.3B).

Long Term Liabilities: GLNG's short term assets ($401.5M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: GLNG's debt to equity ratio (54.2%) is considered high.

Reducing Debt: GLNG's debt to equity ratio has reduced from 60.9% to 54.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GLNG's debt is not covered by short term assets (assets are 0.4x 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: GLNG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GLNG 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?

2.29%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GLNG'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 GLNG's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: GLNG is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Iain Ross (57yo)

2.5s

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Iain Ross
Chief Executive Officer of Golar Management Ltd2.5yrsno datano data
Graham Robjohns
Executive Officer2yrsno datano data
Øistein Dahl
Chief Operating Officer of Golar Management Ltd.7.92yrsno datano data
Olve Skjeggedal
Chief Technical Officer of Golar Management Ltd1.17yrsno datano data
Stuart Buchanan
Head of Investor Relationsno datano datano data
Georgina Sousa
Company Secretary & Director0.50yrno datano data
Douglas Arnell
Senior Advisor3.83yrsno datano data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Management: GLNG's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Georgina Sousa
Company Secretary & Director0.50yrno datano data
Tor Trøim
Chairman of the Board2.5yrsno data3.56% $28.2m
Niels Stolt-Nielsen
Director4.5yrsno datano data
Daniel Rabun
Independent Director5yrsno datano data
Carl Steen
Independent Director5.17yrsno datano data
Thorleif Egeli
Director1.5yrsno datano data
Lori Naess
Independent Director4yrsno datano data

4.0yrs

Average Tenure

56yo

Average Age

Experienced Board: GLNG's board of directors are considered experienced (4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Golar LNG Limited
  • Ticker: GLNG
  • Exchange: NasdaqGS
  • Founded: 1946
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$793.407m
  • Shares outstanding: 99.30m
  • 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 Analysis2020/03/30 02:32
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.