New Fortress Energy Inc. (NASDAQ: NFE)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0001749723
Market Cap 311.74 Mn
P/B 0.31
P/E -0.24
P/S 0.18
ROIC (Qtr) -7.38
Div Yield % 0.00
Rev 1y % (Qtr) -42.32
Total Debt (Qtr) 9.31 Bn
Debt/Equity (Qtr) 9.35

About

Price action

Investment thesis

Bull case

  • Cash position of 389.34M provides exceptional 13.55x coverage of minority interest expenses 28.74M, indicating strong liquidity.
  • Free cash flow of (1.67B) provides excellent 239.01x coverage of dividends (7.01M), indicating sustainable shareholder returns.
  • Tangible assets of 11.69B provide robust 17.25x coverage of other current liabilities 677.96M, indicating strong asset backing.
  • Cash reserves of 389.34M provide solid 2.38x coverage of other non-current liabilities 163.70M, indicating strong liquidity.
  • Cash reserves of 389.34M exceed inventory value of 109.28M by 3.56x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of (134.65M) barely covers its investment activities of (570.44M), with a coverage ratio of 0.24, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 389.34M provide limited coverage of acquisition spending of 949.46M, which is 0.41x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (134.65M) shows concerning coverage of stock compensation expenses of 13.34M, with a -10.10 ratio indicating potential earnings quality issues.
  • High receivables of 419.76M relative to inventory of 109.28M (3.84 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of (134.65M) provides minimal -1.74x coverage of tax expenses of 77.45M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Geographical Breakdown of Revenue (2024)

Segments 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 0.75 3.39
EV to Cash from Ops. EV/CFO -66.08 7.77
EV to Debt EV to Debt 0.96 -68.56
EV to EBIT EV/EBIT -18.08 12.77
EV to EBITDA EV/EBITDA -16.79 7.47
EV to Free Cash Flow [EV/FCF] EV/FCF -5.31 13.20
EV to Market Cap EV to Market Cap 28.54 2.49
EV to Revenue EV/Rev 5.00 4.48
Price to Book Value [P/B] P/B 0.31 94.01
Price to Earnings [P/E] P/E -0.24 12.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -185.50 -3.60
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 72.05
Dividend per Basic Share Div per Share (Qtr) 0.00 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 32.66
Interest Coverage Int. cover (Qtr) -0.67 5.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 41.21 -17.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 64.47 16,113.89
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -1.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -227.95 -5.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -163.94 -4.54
EBIT Growth (1y) % EBIT 1y % (Qtr) -186.48 -11.94
EBT Growth (1y) % EBT 1y % (Qtr) -564.27 -230.00
EPS Growth (1y) % EPS 1y % (Qtr) -634.78 -44.55
FCF Growth (1y) % FCF 1y % (Qtr) 23.38 -0.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -44.71 -1.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.15 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.21
Cash Ratio Cash Ratio (Qtr) 0.05 0.81
Current Ratio Curr Ratio (Qtr) 0.17 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 9.35 1.11
Interest Cover Ratio Int Coverage (Qtr) -0.67 5.11
Times Interest Earned Times Interest Earned (Qtr) -0.67 5.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -15.20 35.86
EBIT Margin % EBIT Margin % (Qtr) -27.67 27.76
EBT Margin % EBT Margin % (Qtr) -68.73 17.28
Gross Margin % Gross Margin % (Qtr) 42.20 48.56
Net Profit Margin % Net Margin % (Qtr) -73.10 15.36