Cheniere Energy, Inc. (NYSE: LNG)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0000003570
Market Cap 43.25 Bn
P/B 6.41
P/E 10.80
P/S 2.28
ROIC (Qtr) 17.07
Div Yield % 1.32
Rev 1y % (Qtr) 18.02
Total Debt (Qtr) 25.19 Bn
Debt/Equity (Qtr) 3.73

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 5.12B provides strong 23.84x coverage of stock compensation 215M, indicating sustainable incentive practices.
  • Tangible assets of 45.10B provide exceptional 256.26x coverage of deferred revenue 176M, showing strong service capability backing.
  • Strong operating cash flow of 5.12B provides 11.70x coverage of SG&A expenses 438M, showing efficient operational cost management.
  • Operating cash flow of 5.12B provides strong 29.12x coverage of deferred revenue 176M, indicating service delivery capability.
  • Tangible assets of 45.10B provide robust 19.47x coverage of other current liabilities 2.32B, indicating strong asset backing.

Bear case

  • Operating cash flow of 5.12B barely covers its investment activities of (2.84B), with a coverage ratio of -1.81, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 5.12B provides thin coverage of dividend payments of (444M) with a -11.54 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 1.32B relative to inventory of 458M (2.89 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • High financing cash flow of (3.97B) relative to working capital of (238M), which is 16.67x suggests concerning dependence on external funding for operational needs.
  • Free cash flow of 2.22B represents just -3.15x of debt issuance (705M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Concentration Risk Type Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas Midstream
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ENB Enbridge Inc 100.05 Bn 24.60 2.15 75.15 Bn
2 WMB Williams Companies, Inc. 73.60 Bn 31.09 6.40 27.99 Bn
3 EPD Enterprise Products Partners L.P. 69.94 Bn 12.09 1.32 33.58 Bn
4 KMI Kinder Morgan, Inc. 60.62 Bn 22.23 3.69 32.58 Bn
5 ET Energy Transfer LP 58.05 Bn 13.46 0.73 63.97 Bn
6 TRP Tc Energy Corp 55.97 Bn 22.78 5.27 44.47 Bn
7 MPLX Mplx Lp 54.03 Bn 11.23 4.22 25.92 Bn
8 OKE Oneok Inc /New/ 44.55 Bn 13.34 1.41 33.73 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.48 3.39
EV to Cash from Ops. EV/CFO 13.00 7.77
EV to Debt EV to Debt 2.65 -68.56
EV to EBIT EV/EBIT 11.00 12.77
EV to EBITDA EV/EBITDA 7.43 7.47
EV to Free Cash Flow [EV/FCF] EV/FCF 29.99 13.20
EV to Market Cap EV to Market Cap 1.54 2.49
EV to Revenue EV/Rev 3.51 4.48
Price to Book Value [P/B] P/B 6.41 94.01
Price to Earnings [P/E] P/E 10.80 12.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 9.02 -3.60
Dividend Payout Ratio % Div Payout % (Qtr) 11.10 72.05
Dividend per Basic Share Div per Share (Qtr) 2.00 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 19.74 32.66
Interest Coverage Int. cover (Qtr) 6.43 5.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -23.01 -17.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -54.55 16,113.89
Dividend Growth (1y) % Div 1y % (Qtr) 14.94 -1.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 5.92 -5.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.10 -4.54
EBIT Growth (1y) % EBIT 1y % (Qtr) 7.37 -11.94
EBT Growth (1y) % EBT 1y % (Qtr) 11.17 -230.00
EPS Growth (1y) % EPS 1y % (Qtr) 13.73 -44.55
FCF Growth (1y) % FCF 1y % (Qtr) -28.62 -0.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.81 -1.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.42 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.06 0.21
Cash Ratio Cash Ratio (Qtr) 0.37 0.81
Current Ratio Curr Ratio (Qtr) 0.94 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 3.73 1.11
Interest Cover Ratio Int Coverage (Qtr) 6.43 5.11
Times Interest Earned Times Interest Earned (Qtr) 6.43 5.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 42.10 35.86
EBIT Margin % EBIT Margin % (Qtr) 31.95 27.76
EBT Margin % EBT Margin % (Qtr) 26.98 17.28
Gross Margin % Gross Margin % (Qtr) 46.40 48.56
Net Profit Margin % Net Margin % (Qtr) 21.10 15.36