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Flex Lng (FLNG)
:FLNG

FLEX LNG (FLNG) AI Stock Analysis

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FLEX LNG

(NYSE:FLNG)

Rating:72Outperform
Price Target:
FLEX LNG's overall score reflects its solid financial performance and attractive valuation, bolstered by a strong earnings call. However, technical indicators suggest caution due to potential overbought conditions, and ongoing market and regulatory challenges could impact future performance.
Positive Factors
Dividend Strength
FLNG's high contract coverage provides strong cash flow visibility which should continue to fund the dividend.
Earnings Performance
Flex LNG reported an overall 2Q beat, as the termination of the back end of an interest rate swap pushed earnings above expectations.
Financial Stability
Flex declared its usual dividend of $0.75/sh and announced it had received credit approval for the refinancing of 3 ships for $430 million, unlocking $97 million in cash.
Negative Factors
Market Conditions
EU gas inventories are currently sitting at all-time highs for this point in the year at ~95% full, creating an additional overhang for LNG carrier rates.
Spot Rate Pressure
Limited spot cargoes across both Atlantic and Pacific basins is putting downward pressure on spot rates.

FLEX LNG (FLNG) vs. SPDR S&P 500 ETF (SPY)

FLEX LNG Business Overview & Revenue Model

Company DescriptionFlex LNG Ltd., through its subsidiaries, engages in the seaborne transportation of liquefied natural gas (LNG) worldwide. As of February 16, 2022, it owned and operated nine M-type electronically controlled gas injection LNG carriers; and four vessels with generation X dual fuel propulsion systems. It also provides chartering and management services. Flex LNG Ltd. was incorporated in 2006 and is based in Hamilton, Bermuda.
How the Company Makes MoneyFLEX LNG makes money primarily through long-term time charter agreements with energy companies and traders who require transportation of LNG. These contracts provide a steady stream of revenue, as customers pay a fixed daily rate to use FLEX LNG's vessels over an agreed period. The company also engages in spot market charters, which offer higher rates when demand for LNG shipping capacity spikes. Additionally, the company's earnings are influenced by partnerships with major energy producers and traders who depend on FLEX LNG's modern fleet for efficient and reliable LNG transport.

FLEX LNG Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2025)
|
% Change Since: -4.86%|
Next Earnings Date:Aug 29, 2025
Earnings Call Sentiment Positive
Flex LNG reported solid financial results and maintained a strong balance sheet, despite challenges in the spot market and global LNG import environment. The company's long-term outlook remains positive, bolstered by a strong contract backlog and cash position.
Q1-2025 Updates
Positive Updates
Strong Adjusted Net Income
Flex LNG reported $29.4 million in adjusted net income for Q1 2025, implying $0.54 in adjusted earnings per share.
Solid Contract Backlog
The company secured up to 88 years of contract backlog, providing a robust foundation for future revenue.
Fortress Balance Sheet
Flex LNG maintains a strong balance sheet with $410 million in cash and minimal CapEx liabilities.
Successful Balance Sheet Optimization
Initiation of balance sheet optimization program 3.0 to release an additional $120 million in free cash.
High Dividend Yield
The Board declared a $0.75 per share quarterly dividend, bringing the trailing 12-month dividend to $3 per share or a yield of 12%.
Positive Long-Term LNG Market Outlook
Flex LNG is well-positioned to benefit from increasing LNG export volumes expected between 2028 and 2030.
ESG Achievements
Released the seventh ESG report with a B score for CDP rating and zero lost time injury frequency in 2024.
Negative Updates
Seasonal Lower Spot Market
Reduction in revenues due to a seasonal lower spot market impacting the variable hire contract for Flex Artemis.
Interest Rate Volatility
Net loss of $7.3 million on the derivative portfolio due to significant interest rate market volatility.
Challenging LNG Import Environment
LNG imports to China dropped by 24%, and India showed flattish growth compared to last year's double-digit growth.
Company Guidance
In the first quarter of 2025, Flex LNG reported strong financial results, with $29.4 million in adjusted net income and $0.54 in adjusted earnings per share. The company maintained its full-year revenue guidance of $340 million to $360 million, with an expected TCE of $72,000 to $77,000 per day. EBITDA is projected to be between $250 million and $270 million. The Board declared a $0.75 per share dividend, leading to a 12% yield over the last 12 months. Flex LNG's balance sheet remains robust, with $410 million in cash and a solid contract backlog of 59 years, potentially increasing to 88 years if all options are exercised. The company is optimizing its balance sheet to free up $120 million in cash, with plans for refinancing initiatives, including securing a JOLCO financing for Flex Courageous. Despite a soft spot market, Flex LNG's long-term outlook is positive, with strong demand anticipated for LNG shipping driven by new U.S. and Qatar projects.

FLEX LNG Financial Statement Overview

Summary
FLEX LNG demonstrates robust financial health with strong profitability and a stable balance sheet. While cash flow management poses some challenges, the company maintains solid financial metrics that support its operations and growth in the fossil fuels industry.
Income Statement
75
Positive
FLEX LNG shows strong profitability with a stable gross profit margin and EBIT margin over the years. However, the net income has been fluctuating, indicating potential volatility. Revenue growth is inconsistent but has shown resilience in challenging years.
Balance Sheet
70
Positive
The balance sheet reflects a moderate debt-to-equity ratio and a solid equity ratio, indicating a stable capital structure. The return on equity is strong, but there is potential risk due to substantial total debt levels.
Cash Flow
65
Positive
Operating cash flow is consistently positive, showing good cash conversion from operations. However, free cash flow has seen significant fluctuations, which may indicate challenges in managing capital expenditures and financing needs.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue356.35M371.02M347.92M343.45M164.46M
Gross Profit207.58M227.62M209.76M209.04M81.92M
EBITDA298.89M302.20M336.96M270.99M117.47M
Net Income117.68M120.04M188.04M162.21M8.11M
Balance Sheet
Total Assets2.67B2.71B2.68B2.57B2.30B
Cash, Cash Equivalents and Short-Term Investments437.15M410.43M332.33M200.65M128.88M
Total Debt1.81B1.81B1.71B1.63B1.40B
Total Liabilities1.86B1.86B1.77B1.68B1.47B
Stockholders Equity806.63M847.65M907.09M889.39M835.17M
Cash Flow
Free Cash Flow182.79M175.03M219.88M-51.09M-602.09M
Operating Cash Flow182.80M175.03M219.88M214.84M89.30M
Investing Cash Flow-2.00K-5.00K-265.93M-691.39M
Financing Cash Flow-155.61M-96.54M-88.76M123.10M603.32M

FLEX LNG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.51
Price Trends
50DMA
23.35
Negative
100DMA
22.59
Negative
200DMA
22.74
Negative
Market Momentum
MACD
-0.23
Positive
RSI
39.85
Neutral
STOCH
12.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNG, the sentiment is Negative. The current price of 22.51 is below the 20-day moving average (MA) of 23.65, below the 50-day MA of 23.35, and below the 200-day MA of 22.74, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 12.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLNG.

FLEX LNG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TKTK
80
Outperform
$691.88M5.2918.55%24.15%-23.02%-38.08%
LPLPG
80
Outperform
$1.05B11.938.71%7.76%-24.25%-48.08%
79
Outperform
$131.88M2.6510.57%5.43%-2.37%32.03%
79
Outperform
$989.06M11.247.38%1.32%6.38%9.47%
72
Outperform
$1.20B11.7812.69%13.33%-3.95%-2.25%
68
Neutral
$15.14B9.916.38%5.21%4.16%-67.19%
63
Neutral
$4.20B1,519.700.13%2.44%-10.89%-97.48%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLNG
FLEX LNG
22.51
-1.45
-6.05%
GLNG
Golar LNG
40.89
8.24
25.24%
TK
Teekay
7.55
1.03
15.80%
NVGS
Navigator Holdings
15.16
-2.31
-13.22%
DLNG
Dynagas LNG Partners
3.61
-0.12
-3.22%
LPG
Dorian LPG
25.76
-13.29
-34.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025