Rating Change #4
Cheniere Energy Inc (LNG) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- Despite the fact that LNG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.80 is high and demonstrates strong liquidity.
- Powered by its strong earnings growth of 28.33% and other important driving factors, this stock has surged by 113.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- CHENIERE ENERGY INC has improved earnings per share by 28.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHENIERE ENERGY INC reported poor results of -$2.60 versus -$2.02 in the prior year. This year, the market expects an improvement in earnings (-$0.73 versus -$2.60).
- Net operating cash flow has decreased to -$68.70 million or 39.50% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- 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 41.6% when compared to the same quarter one year ago, falling from -$39.84 million to -$56.42 million.
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 $2.53 billion and is part of the basic materials sector and energy industry. Shares are up 89.4% year to date as of the close of trading on Tuesday.You can view the full Cheniere Energy Ratings Report or get investment ideas from our investment research center.