Cheniere Energy, Inc. (LNG) stock analysis

P/E above its 5-year median

Cheniere Energy's P/E of 21.2 is above its own 5-year median of 11.6.

P/E above the industry

Cheniere Energy's P/E of 21.2 is above the Gas Production and Distribution median of 17.3.

EV/EBITDA above its 5-year median

Cheniere Energy's EV/EBITDA of 11.2 is above its 5-year median of 9.0.

P/B above the industry

Cheniere Energy's price-to-book of 9.49 is above the Gas Production and Distribution median of 2.10.

Trading above fair value

The share price of $304.51 is above our fair value estimate of $268.99.

Margin of safety under 20%

The price is 13.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -15.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 62.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 22.5% over the last twelve months; the Gas Production and Distribution median is 13.6%.

Guidance raised

Cheniere Energy raised its full year 2026 Distributable Cash Flow outlook on Aug 6, 2026.

Gross margin slipping

Gross margin was 45.4% over the last twelve months, against 56.8% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 19.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Cheniere Energy's return on equity of 45.7% is above the Gas Production and Distribution median of 12.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 13.1% over the last twelve months, against a 5-year average of 17.1%.

Net margin above the industry

Cheniere Energy's net margin of 13.1% is above the Gas Production and Distribution median of 13.1%.

High debt

Debt is 365% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 30.0% of total debt.

Interest well covered

Operating income covers interest expense 6.1 times.

Short-term assets don't cover short-term debts

Current assets are 0.90 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.28; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Cheniere Energy paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cheniere Energy yields 0.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Covered by earnings

Dividends take 15.3% of net income.

Covered by free cash flow

Dividends take 12.3% of free cash flow.