Venture Global, Inc. Class A (VG) AI Stock Analysis

• Market Cap: $22.62B
• Dividend Yield: N/A
• Average Volume (3M): 6.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.22
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Fossil Fuels
• EPS (TTM): 0.15
• Shares Outstanding: 451,009,400
• 10 Day Avg. Volume: 4,120,186
• 30 Day Avg. Volume: 6,253,544
• PEG Ratio: 0.14
• Price to Book (P/B): 8.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.78
• Price Target Upside: 92.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Venture Global, Inc. Class A shows strong revenue growth and operational efficiency but is constrained by high leverage and cash flow issues. These financial challenges, combined with bearish technical indicators, contribute to a moderate overall stock score. The lack of valuation metrics such as P/E ratio and dividend yield further complicates a comprehensive assessment of the stock's attractiveness. While the company is positioned for growth, addressing leverage and improving liquidity will be crucial for future performance.

Positive Factors

Growth Ambitions

Venture Global's growth ambitions are expected to make it one of the largest LNG export companies globally, enhancing its negotiating flexibility.

Marketing Profits

Investors are currently overlooking the near-term upside, as Venture Global is forecasted to generate significant marketing profits during the Plaquemines commissioning process.

Negative Factors

2025 Guidance Concerns

The stock experienced a significant drop of 36% following a challenging first release post-IPO, attributed to a 4Q24 miss, soft 2025 guidance, and mixed messaging.

Commodity Price Sensitivity

Commodity prices are the primary near-term risk to estimates with VG guiding to a significant EBITDA sensitivity for every $1/mmbtu change in liquefaction fees.

Venture Global, Inc. Class A Business Overview & Revenue Model

Company Description

Venture Global has fundamentally reshaped the development and construction of liquefied natural gas production, establishing us as a rapidly growing company delivering critical LNG to the world. We are commissioning, constructing, and developing five natural gas liquefaction and export projects near the Gulf of Mexico in Louisiana. Each project is designed or is being developed to include an LNG facility and associated pipeline systems that interconnect with several interstate and intrastate pipelines to enable the delivery of natural gas into the LNG facility.

How the Company Makes Money

Venture Global, Inc. makes money primarily through the sale of liquefied natural gas. The company generates revenue by entering into long-term sales agreements with international buyers, including utility companies, industrial users, and other energy distributors. These contracts ensure a steady revenue stream based on negotiated pricing that typically includes fixed and variable components. Additionally, VG benefits from strategic partnerships with other energy firms and technology providers, which enhance its operational capabilities and market reach. The company's earnings are also supported by its ability to leverage economies of scale and optimize production processes at its facilities.

Venture Global, Inc. Class A Financial Statement Overview

Summary

Venture Global, Inc. Class A demonstrates strong revenue growth and operational efficiency, as seen in their income statement, but faces challenges from high leverage and cash flow constraints. The balance sheet shows improved equity but is burdened by high debt levels, which could pose risks if not managed properly. Cash flow issues may limit liquidity and investment capacity in the future. Overall, the company is positioned for growth but must address leverage and cash flow challenges to ensure long-term financial health.

Income Statement

Venture Global, Inc. Class A has shown strong growth in the fossil fuels industry, with a consistent increase in total revenue from $1.19 billion in 2019 to $4.97 billion in 2024. The gross profit margin remains robust, indicative of efficient cost management. However, there was a decline in total revenue from 2023 to 2024, and net profit margins have shown volatility, reflecting some instability. The EBIT and EBITDA margins are strong, showcasing solid operational performance.

Balance Sheet

The company's balance sheet reveals a high level of debt, with a debt-to-equity ratio reflecting significant leverage, which could pose financial risk. Stockholders' equity has grown substantially, indicating improved financial stability. The equity ratio has improved, suggesting better asset financing through equity. However, the high total liabilities relative to equity may constrain future financial flexibility.

Cash Flow

Cash flows have been volatile, with substantial free cash flow deficits in recent years. The operating cash flow is positive, indicating good cash generation from operations, but high capital expenditures have led to negative free cash flow, suggesting aggressive investment strategies. The free cash flow to net income ratio is concerning, indicating potential cash flow issues that could impact liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.97B	7.90B	6.45B	1.41B	1.25B
	Gross Profit
3.30B	6.21B	4.20B	714.51M	694.41M
	EBIT
1.76B	4.85B	3.56B	-337.00M	-149.00K
	EBITDA
3.09B	5.35B	4.31B	-371.00M	32.95M
	Net Income Common Stockholders
1.54B	2.68B	1.86B	-356.00M	-27.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.61B	4.82B	618.00M	18.34M	43.08M
	Total Assets
43.49B	28.46B	15.10B	1.39B	1.08B
	Total Debt
29.81B	21.17B	10.95B	479.17M	215.50M
	Net Debt
26.20B	16.34B	10.33B	460.82M	172.42M
	Total Liabilities
37.12B	26.38B	14.59B	770.42M	793.06M
	Stockholders Equity
2.90B	1.51B	-186.00M	617.72M	602.77M
Cash Flow		Free Cash Flow
-11.57B	-3.60B	-1.01B	-2.58B	72.88M
	Operating Cash Flow
2.15B	4.55B	3.70B	158.71M	83.88M
	Investing Cash Flow
-14.16B	-8.72B	-2.90B	-2.08B	-52.72M
	Financing Cash Flow
10.75B	7.63B	235.00M	-117.26M	-10.85M

Venture Global, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCSM	80 Outperform	$80.19M	9.81	8.71%	―	18.03%	-39.52%
MXC	63 Neutral	$13.51M	10.40	7.57%	―	2.12%	-30.63%
DTI	63 Neutral	$84.35M	22.81	2.89%	―	38.85%	-68.54%
VG	59 Neutral	$22.62B	―		―	―	―
Sector *	56 Neutral	$7.17B	3.84	-4.86%	5.83%	0.24%	-51.87%
GEOS	50 Neutral	$77.04M	―	-11.88%	―	-14.52%	-204.65%
BNRG	32 Underperform	$8.58M	―	-335.00%	―	―	―