Flex LNG (NYSE:FLNG) Valuation in Focus After Buyback, NYSE Move, and Debt Refinancing Initiatives

Flex LNG (NYSE:FLNG) has been busy lately, and investors are paying attention. In quick succession, the company announced a $15 million share buyback, fresh sale and leaseback vessel deals, a new term loan to improve financing costs, and a move to delist from the Oslo Stock Exchange so its stock will trade exclusively on the NYSE. For anyone following FLNG, these developments not only highlight management’s focus on capital returns and financial flexibility but also raise timely questions about how these moves could shape the stock's path ahead.

Taking a step back, FLNG shares have climbed about 10% over the past year, with a steady gain of 15% in the past month alone. This run comes even as recent earnings showed a dip in net income compared to last year. Despite that, the confirmed dividend and repurchase program suggest the board’s confidence in the company’s long-term cash flows, while new financing helps reduce risk in a capital-intensive industry. With momentum building, the market seems to be warming up to FLNG’s story.

But after this run, is FLNG offering real value at current levels, or is the market already pricing in the company’s biggest growth levers? That is the central question for investors now.

Most Popular Narrative: 11.6% Overvalued

According to community narrative, FLEX LNG is currently viewed as overvalued based on analysts' expectations for future earnings growth, profit margins, and additional risk factors.

The company's multi-year contract backlog (56 years minimum, up to 85 years with options) and long-term charters secure steady revenue and earnings despite short-term market softness. This positions FLEX LNG to benefit as global LNG trade volumes are projected to rise due to new export capacity coming online, particularly from the US, Qatar, and Africa. As a result, future cash flow visibility and net margin stability are expected to improve.

Curious why the narrative signals FLEX LNG is priced above fair value? A few crucial quantitative assumptions are working behind the scenes, including projected profit margin boosts and expectations for steady contract revenue. What fundamental forces make analysts call for a lower price? Deep dive into the narrative to discover how these pivotal factors combine to shape this valuation outlook.

Result: Fair Value of $24.00 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts. However, a surge in new vessel deliveries or ongoing weak LNG demand in key markets could quickly undermine today’s positive outlook for FLEX LNG. Find out about the key risks to this FLEX LNG narrative.

Another View: Discounted Cash Flow Signals Opportunity

Looking at FLEX LNG through the SWS DCF model gives a much more optimistic signal. This approach suggests the market might be missing some hidden value in the company. Does this change how you think about FLEX LNG’s outlook?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out FLEX LNG for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own FLEX LNG Narrative

If you see FLEX LNG’s story differently or want to dig into the numbers your own way, you can quickly create a custom narrative and see how it stacks up. do it your way.

A great starting point for your FLEX LNG research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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