AMEX:LNG

Stock Analysis Report

Executive Summary

Cheniere Energy, Inc., an energy company, engages in the liquefied natural gas (LNG) related businesses in the United States.

Snowflake

Fundamentals

High growth potential with poor track record.


Similar Companies

Share Price & News

How has Cheniere Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.7%

LNG

3.3%

US Oil and Gas

3.4%

US Market


1 Year Return

-3.1%

LNG

-21.8%

US Oil and Gas

5.4%

US Market

Return vs Industry: LNG exceeded the US Oil and Gas industry which returned -21.8% over the past year.

Return vs Market: LNG underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

LNGIndustryMarket
7 Day5.7%3.3%3.4%
30 Day-3.7%-4.3%-1.0%
90 Day-4.7%-7.2%-0.4%
1 Year-3.1%-3.1%-19.0%-21.8%7.7%5.4%
3 Year51.4%51.4%-6.1%-14.4%46.2%36.8%
5 Year-13.3%-13.3%-23.5%-34.1%65.6%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cheniere Energy undervalued compared to its fair value and its price relative to the market?

100.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: LNG ($63) is trading above our estimate of fair value ($61.44)

Significantly Undervalued: LNG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LNG is poor value based on its PE Ratio (100.9x) compared to the Oil and Gas industry average (10x).

PE vs Market: LNG is poor value based on its PE Ratio (100.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: LNG is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: LNG has negative assets, so we can't compare its PB Ratio to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Cheniere Energy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

39.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNG's forecast earnings growth (39.9% per year) is above the savings rate (2.7%).

Earnings vs Market: LNG's earnings (39.9% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: LNG's revenue (11.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: LNG's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LNG's Return on Equity is forecast to be very high in 3 years time (65.8%).


Next Steps

Past Performance

How has Cheniere Energy performed over the past 5 years?

43.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LNG has become profitable over the past 5 years, growing earnings by 43.7% per year.

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

Earnings vs Industry: LNG had negative earnings growth (-10.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (22.6%).


Return on Equity

High ROE: Whilst LNG's Return on Equity (39%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: LNG's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: LNG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cheniere Energy's financial position?


Financial Position Analysis

Short Term Liabilities: LNG's short term assets ($4.4B) exceeds its short term liabilities ($2.2B)

Long Term Liabilities: LNG's short term assets (4.4B) do not cover its long term liabilities (30.3B)


Debt to Equity History and Analysis

Debt Level: LNG's debt to equity ratio (1484.9%) is considered high

Reducing Debt: LNG's debt to equity ratio has increased from 366% to 1484.9% over the past 5 years.

Debt Coverage: LNG's debt is not well covered by operating cash flow (5.9%).

Interest Coverage: LNG's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: LNG's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Cheniere Energy's current dividend yield, its reliability and sustainability?

1.13%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Jack Fusco (57yo)

3.4yrs

Tenure

US$21,266,901

Compensation

Mr. Jack A. Fusco has been the Chief Executive Officer and President at Cheniere Energy, Inc. and Cheniere Energy Partners LP Holdings, LLC since May 12, 2016. He serves as the Chief Executive Officer of S ...


CEO Compensation Analysis

Compensation vs. Market: Jack's total compensation ($USD21.27M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Jack's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

50yo

Average Age

Experienced Management: LNG's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

64.5yo

Average Age

Experienced Board: LNG's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$22,007,50915 May 19
Icahn Capital LP
EntityCompany
Shares328,874
Max PriceUS$67.31
SellUS$143,49127 Dec 18
Vicky Bailey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,567
Max PriceUS$55.90
BuyUS$100,47015 Nov 18
Sean Markowitz
EntityIndividual
Role
Chief Legal Officer
General Counsel & Corporate Secretary
Shares1,700
Max PriceUS$59.10
BuyUS$888,00015 Nov 18
Jack Fusco
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceUS$59.20

Ownership Breakdown


Management Team

  • Jack Fusco (57yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$21.27m
  • Len Travis (56yo)

    VP & Chief Accounting Officer

    • Tenure: 5.8yrs
  • Anatol Feygin (51yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 3.1yrs
    • Compensation: US$8.88m
  • Michael Wortley (43yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$10.06m
  • Randy Bhatia

    Vice President

    • Tenure: 0yrs
  • Sean Markowitz (45yo)

    General Counsel & Corporate Secretary

    • Tenure: 3.3yrs
    • Compensation: US$4.39m
  • Tom Bullis

    Executive VP & Chief Administrative Officer

    • Tenure: 3.1yrs
  • Doug Shanda (49yo)

    Senior Vice President of Operations

    • Tenure: 3.1yrs
    • Compensation: US$5.38m
  • Michael Dove

    VP & Chief Information Officer

    • Tenure: 0yrs
  • Deanna Newcomb

    Chief Compliance & Ethics Officer and VP of Internal Audit

    • Tenure: 0yrs

Board Members

  • David Foley (51yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: US$210.06k
  • Nuno Brandolini (65yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$215.06k
  • Gary Botta (66yo)

    Independent Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$362.53k
  • Jack Fusco (57yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$21.27m
  • David Kilpatrick (69yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$210.06k
  • Donald Robillard (67yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$235.12k
  • Vicky Bailey (67yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$212.56k
  • Neal Shear (64yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$230.12k
  • Courtney Mather (42yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$210.12k
  • Andrew Langham (46yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$255.12k

Company Information

Cheniere Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cheniere Energy, Inc.
  • Ticker: LNG
  • Exchange: AMEX
  • Founded: 1983
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$16.171b
  • Shares outstanding: 256.68m
  • Website: https://www.cheniere.com

Number of Employees


Location

  • Cheniere Energy, Inc.
  • 700 Milam Street
  • Suite 1900
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNGAMEX (NYSE MKT LLC)YesCommon StockUSUSDJan 1975
CHQ1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975
0HWHLSE (London Stock Exchange)YesCommon StockGBUSDJan 1975

Biography

Cheniere Energy, Inc., an energy company, engages in the liquefied natural gas (LNG) related businesses in the United States. The company owns and operates Sabine Pass LNG terminal in Cameron Parish, Louis ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:32
End of Day Share Price2019/10/15 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.