Cheniere Energy (LNG) AI Stock Analysis

• Market Cap: $52.24B
• Dividend Yield: 0.8%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.65
• Revenue Growth: -22.22%
• EPS Growth: -64.97%
• Country: US
• Employees: 1,714
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.57
• Shares Outstanding: 222,814,440
• 10 Day Avg. Volume: 1,657,374
• 30 Day Avg. Volume: 2,177,313
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.46
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $260.07
• Price Target Upside: 8.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

Cheniere Energy's stock score of 76 reflects strong financial performance and positive technical indicators, despite some caution due to market volatility and geopolitical risks. The company's strategic initiatives and robust cash flow generation are key strengths. Valuation is fair, with a reasonable P/E ratio and modest dividend yield. Positive earnings guidance and recent corporate events further reinforce the stock's attractiveness.

Positive Factors

Permitting Strategy

Aggressive permitting strategy will optimize flexibility on growth, allowing Cheniere to pursue more targeted expansions and maximize project accretion.

Production Growth

LNG has a highly visible path to increased production, reaching ~80mtpa by the future fiscal year.

Share Buybacks

LNG's 13% pullback is seen as a buying opportunity given its limited exposure to spot commodity prices and ability to buy back shares.

Negative Factors

Buyback Limitations

The stock price after 3Q earnings was consistently higher than where it traded prior to earnings, which could limit 4Q buyback activity beyond the implied $218MM repurchased qtd at the time of 3Q earnings.

Market Underperformance

LNG has been a significant underperformer compared to gas-levered Midstream 'C-corps' due to lack of exposure to domestic data center demand and absence of earnings catalysts for FY24.

Tariffs Impact

The introduction of tariffs from the US and potential retaliatory tariffs has weighed on energy equities.

Cheniere Energy Business Overview & Revenue Model

Company Description

Cheniere Energy, Inc. is a leading energy company primarily engaged in liquefied natural gas (LNG) operations. Headquartered in Houston, Texas, Cheniere is a prominent player in the LNG sector, focusing on the development, construction, and operation of LNG terminals. The company is known for its large-scale LNG export facilities, including the Sabine Pass LNG terminal in Louisiana and the Corpus Christi LNG terminal in Texas, which are among the first of their kind in the United States. Cheniere's operations enable it to supply LNG to a diverse range of international markets, providing a crucial link in the global energy supply chain.

How the Company Makes Money

Cheniere Energy generates revenue primarily through the production and sale of liquefied natural gas. The company's revenue model is centered around long-term contracts with customers worldwide, which include utility companies and energy traders. These contracts typically have take-or-pay clauses, ensuring a steady revenue stream regardless of fluctuations in demand. Additionally, Cheniere earns money through spot market sales and short-term contracts, which allow it to capitalize on favorable market conditions. The company's strategic location of its terminals enables it to efficiently access both Atlantic and Pacific markets, enhancing its competitive position. Key partnerships and agreements with major energy companies further bolster Cheniere's earnings by facilitating access to global markets and ensuring a reliable supply of natural gas for liquefaction.

Cheniere Energy Financial Statement Overview

Summary

Cheniere Energy exhibits strong financial performance with improving profitability and cash flow metrics. The Income Statement shows strong profitability with improved net profit margins and strategic cost management. The Balance Sheet indicates improved financial health with a better debt-to-equity ratio; however, it remains leveraged. Cash Flow is robust, with consistent free cash flow generation and strong operational cash management. Continued focus on debt management and revenue growth will be key.

Income Statement

Cheniere Energy has demonstrated strong profitability with a significant improvement in net profit margin from past losses to substantial profits. The gross profit margin in the recent year is robust due to strategic cost management. However, the revenue growth rate has seen some decline, indicating potential market challenges or saturation in some segments.

Balance Sheet

The company's debt-to-equity ratio has improved as equity becomes positive, though it remains leveraged. The return on equity has shown improvement as the company turned profitable, but historical equity deficits highlight past financial instability. The equity ratio improvement suggests better financial health, though vigilance is needed to manage liabilities.

Cash Flow

Cheniere Energy has a strong cash flow position with consistent free cash flow generation and a solid operating cash flow to net income ratio, indicating efficient cash management. The company has shown good control over capital expenditures, enhancing its cash flow stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.70B	20.39B	33.43B	15.86B	9.36B
	Gross Profit
6.61B	16.01B	5.00B	-364.00M	2.94B
	EBIT
6.13B	15.49B	4.56B	-701.00M	2.63B
	EBITDA
7.53B	16.91B	5.62B	171.00M	3.57B
	Net Income Common Stockholders
3.25B	9.88B	1.43B	-2.34B	-85.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.64B	4.07B	1.35B	1.40B	1.63B
	Total Assets
43.86B	43.08B	41.27B	39.26B	35.70B
	Total Debt
25.59B	26.79B	27.95B	31.95B	31.66B
	Net Debt
22.95B	22.72B	26.60B	30.55B	30.03B
	Total Liabilities
33.80B	34.06B	41.44B	39.29B	33.48B
	Stockholders Equity
5.70B	5.06B	-2.97B	-2.57B	-191.00M
Cash Flow		Free Cash Flow
5.39B	6.30B	8.69B	1.50B	-574.00M
	Operating Cash Flow
5.39B	8.42B	10.52B	2.47B	1.26B
	Investing Cash Flow
-2.28B	-2.20B	-1.84B	-912.00M	-1.95B
	Financing Cash Flow
-4.45B	-4.18B	-8.01B	-1.82B	-235.00M

Cheniere Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 238.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNG, the sentiment is Positive. The current price of 238.76 is above the 20-day moving average (MA) of 229.34, above the 50-day MA of 224.46, and above the 200-day MA of 206.54, indicating a bullish trend. The MACD of 3.81 indicates Negative momentum. The RSI at 59.50 is Neutral, neither overbought nor oversold. The STOCH value of 80.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNG.

Cheniere Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNG	76 Outperform	$52.24B	16.59	60.45%	0.80%	-22.22%	-64.97%
ET	76 Outperform	$54.25B	12.61	13.53%	8.13%	1.04%	22.31%
KMI	73 Outperform	$60.46B	23.23	8.43%	4.24%	2.02%	5.40%
WMB	71 Outperform	$71.67B	32.28	18.32%	3.28%	8.63%	-20.98%
EPD	70 Outperform	$64.86B	11.27	20.78%	7.08%	9.03%	―
CQP	61 Neutral	$28.70B	13.95	117.38%	5.48%	-9.93%	-50.50%
Sector *	56 Neutral	$6.93B	3.23	-4.86%	5.94%	0.12%	-48.32%

Cheniere Energy Corporate Events

Cheniere Energy Declares Quarterly Cash Dividend

On April 29, 2025, Cheniere Energy, Inc. declared a quarterly cash dividend of $0.500 per share, payable on May 19, 2025, to shareholders of record as of May 9, 2025. This announcement reflects Cheniere’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.

Spark’s Take on LNG Stock

According to Spark, TipRanks’ AI Analyst, LNG is a Outperform.

Cheniere Energy’s strong financial performance, solid technical indicators, and reasonable valuation contribute to a robust stock score. The company’s efficient cash management and strategic growth initiatives are strengths, while geopolitical tensions and market volatility are key risks.

To see Spark’s full report on LNG stock, click here.

Cheniere Energy Appoints Matthew Runkle to Board

On April 1, 2025, Matthew Runkle was appointed to the Board of Directors of Cheniere Energy, Inc., following a right granted to CQP Holdco LP in an agreement from 2012. Concurrently, Scott Peak resigned from the Board. This change in the board composition could influence the company’s strategic direction and stakeholder interests.