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TheStreet Open House

TheStreet Ratings Top 10 Rating Changes

Stocks in this article: WFC TU DEG RAH EDMC IM HBHC LNG SFL LOPE

Rating Change #8

Cheniere Energy Inc (LNG) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 32.9% when compared to the same quarter one year ago, falling from -$40.58 million to -$53.94 million.
  • Net operating cash flow has significantly decreased to -$10.39 million or 215.82% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for CHENIERE ENERGY INC is currently very high, coming in at 80.50%. Regardless of LNG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LNG's net profit margin of -82.00% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 35.8%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • CHENIERE ENERGY INC has improved earnings per share by 8.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CHENIERE ENERGY INC continued to lose money by earning -$2.02 versus -$3.19 in the prior year. For the next year, the market is expecting a contraction of 11.4% in earnings (-$2.25 versus -$2.02).

Cheniere Energy, Inc., through its subsidiaries, engages in the ownership and operation of liquefied natural gas (LNG) receiving terminals and natural gas pipelines in the Gulf Coast of the United States. Cheniere Energy has a market cap of $690.1 million and is part of the basic materials sector and energy industry. Shares are up 51.8% year to date as of the close of trading on Thursday.

You can view the full Cheniere Energy Ratings Report or get investment ideas from our investment research center.

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