FLEX LNG Ltd Fundamental Analysis (NYSE: FLNG)
FLEX LNG Ltd (NYSE: FLNG) shows moderate financial fundamentals with a PE ratio of 17.01, profit margin of 28.50%, and ROE of 14.38%. The company generates $0.4B in annual revenue with weak year-over-year growth of -2.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FLNG's fundamental strength across five key dimensions:
Efficiency Score
WeakFLNG struggles to generate sufficient returns from assets.
Valuation Score
ModerateFLNG shows balanced valuation metrics.
Growth Score
WeakFLNG faces weak or negative growth trends.
Financial Health Score
ModerateFLNG shows balanced financial health with some risks.
Profitability Score
ModerateFLNG maintains healthy but balanced margins.
Key Financial Metrics
Is FLNG Expensive or Cheap?
P/E Ratio
FLNG trades at 17.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FLNG's PEG of 5.22 indicates potential overvaluation.
Price to Book
The market values FLEX LNG Ltd at 2.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.34 times EBITDA. This is generally considered low.
How Well Does FLNG Make Money?
Net Profit Margin
For every $100 in sales, FLEX LNG Ltd keeps $28.50 as profit after all expenses.
Operating Margin
Core operations generate 49.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.38 in profit for every $100 of shareholder equity.
ROA
FLEX LNG Ltd generates $4.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FLEX LNG Ltd generates strong operating cash flow of $152.56M, reflecting robust business health.
Free Cash Flow
FLEX LNG Ltd generates strong free cash flow of $152.56M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.82 in free cash annually.
FCF Yield
FLNG converts 8.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.008
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How FLNG Stacks Against Its Sector Peers
| Metric | FLNG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.01 | 21.23 | Better (Cheaper) |
| ROE | 14.38% | 1266.00% | Weak |
| Net Margin | 28.50% | 1278.00% | Weak |
| Debt/Equity | 2.55 | -1.82 (disorted) | Distorted |
| Current Ratio | 2.69 | 2.24 | Strong Liquidity |
| ROA | 4.01% | 4418.00% | Weak |
FLNG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FLEX LNG Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
111.42%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
823.27%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
51.04%
Industry Style: Cyclical, Value, Commodity
High Growth