Golar LNG (GLNG) AI Stock Analysis

• Market Cap: $4.39B
• Dividend Yield: 2.38%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 1587.9
• Beta (1Y): 1.30
• Revenue Growth: -10.89%
• EPS Growth: -97.48%
• Country: US
• Employees: 474
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.31
• Shares Outstanding: 104,622,475
• 10 Day Avg. Volume: 1,132,054
• 30 Day Avg. Volume: 1,657,112
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 78.14
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 29.48
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $47.50
• Price Target Upside: 12.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: $45.00 ▲(6.43%Upside)

Golar LNG's overall score reflects a company with strong technical momentum and promising long-term contracts but facing immediate challenges in valuation and cash flow management. The earnings call highlighted strategic strength, though market conditions and undervaluation concerns weigh on the score.

Positive Factors

Earnings potential

Gimi offloaded its first LNG cargo and is on pace to achieve COD, with a 20-year contract expected to generate significant annual EBITDA.

Long-term contracts

Finalizing long-term employment for its three existing FLNGs paves the way for additional newbuilds.

Negative Factors

Asset utilization

Lower cash flows are anticipated from the Hilli until its full deployment in Argentina.

Utilization

The Hilli is currently only 55% utilized, resulting in lower cash flows until its deployment in Argentina.

Golar LNG Business Overview & Revenue Model

Company Description

Golar LNG Limited designs, builds, owns, and operates marine infrastructure for the liquefaction and regasification of LNG. It operates through Shipping and FLNG segments. The company engages in the operation and chartering of LNG carriers, Floating Liquefaction Natural Gas Vessel (FLNG), and floating storage regasification units (FSRUs), as well as operates external vessels. As of December 31, 2021, it operated nine LNG carriers, one FSRU, and three FLNGs. The company was founded in 1946 and is headquartered in Hamilton, Bermuda.

How the Company Makes Money

Golar LNG generates revenue primarily through the leasing and operation of its LNG carriers and FSRUs. The company enters into long-term charter agreements with major energy companies, securing stable income from the leasing of its vessels. These contracts often include fixed and variable rate components, depending on the length and terms of the charter. Additionally, Golar LNG participates in LNG trading, capturing margins on the sale and purchase of LNG cargoes. The company also earns income through partnerships and joint ventures that develop and operate LNG infrastructure projects, such as floating liquefaction facilities, further diversifying its revenue streams.

Golar LNG Financial Statement Overview

Summary

Golar LNG's financial performance shows a mixed picture. While there is recovery in net income and a stable balance sheet, challenges remain with declining revenue and negative free cash flow. The company needs to focus on improving operational efficiency and cash flow management.

Income Statement

Golar LNG shows a mixed performance in its income statement metrics. While there is a notable recovery in net income from a loss in 2023 to a positive figure in 2024, revenue has declined from the previous year by 12.75%. The gross profit margin for 2024 is approximately 48.57%, indicating good cost management, but declining EBIT and EBITDA margins highlight challenges in operational efficiency. The company needs to focus on stabilizing and growing revenue to improve profitability metrics.

Balance Sheet

The balance sheet of Golar LNG reflects moderate financial stability. The debt-to-equity ratio has shown some improvement, indicating a decrease in leverage, with the current ratio at about 0.72. Return on Equity (ROE) has improved to approximately 2.47% in 2024, recovering from a negative ROE in 2023. The equity ratio stands at 46.25%, suggesting a balanced capital structure. However, the company should continue to focus on reducing its debt to strengthen its balance sheet further.

Cash Flow

Cash flow performance is a concern for Golar LNG, with negative free cash flow in 2024 albeit an improvement from the previous year. Operating cash flow to net income ratio is strong, indicating good cash generation relative to net income, but the free cash flow to net income ratio is negative. The company should prioritize improving operational cash flow and reducing capital expenditures to achieve positive free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
260.37M	298.43M	267.74M	451.76M	438.64M
	Gross Profit
126.45M	154.80M	140.78M	214.71M	209.15M
	EBIT
62.18M	15.80M	91.64M	181.93M	173.92M
	EBITDA
138.64M	53.21M	1.08B	29.54M	193.07M
	Net Income Common Stockholders
50.84M	-46.79M	787.77M	-9.68M	8.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
566.38M	684.38M	1.13B	268.63M	127.69M
	Total Assets
4.37B	4.08B	4.28B	4.95B	4.34B
	Total Debt
1.46B	1.22B	1.19B	2.41B	2.38B
	Net Debt
892.58M	544.85M	314.07M	2.14B	2.25B
	Total Liabilities
2.00B	1.48B	1.38B	2.77B	2.71B
	Stockholders Equity
2.01B	2.07B	2.50B	1.73B	1.29B
Cash Flow		Free Cash Flow
-119.16M	-189.96M	31.46M	15.60M	-156.40M
	Operating Cash Flow
318.24M	135.25M	298.88M	230.00M	145.78M
	Investing Cash Flow
-416.98M	-131.71M	1.07B	-74.35M	-103.03M
	Financing Cash Flow
43.85M	-244.95M	-691.64M	-51.61M	-137.11M

Golar LNG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLNG, the sentiment is Positive. The current price of 42.28 is above the 20-day moving average (MA) of 40.39, above the 50-day MA of 38.77, and above the 200-day MA of 37.81, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 62.42 is Neutral, neither overbought nor oversold. The STOCH value of 73.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLNG.

Golar LNG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSW	80 Outperform	$1.83B	5.72	17.57%	6.33%	-18.74%	-39.64%
DHT	79 Outperform	$1.81B	10.17	17.04%	5.26%	-5.32%	5.51%
FRO	78 Outperform	$3.91B	11.23	14.79%	4.01%	0.88%	-45.41%
STNG	78 Outperform	$2.03B	2.88	24.68%	3.88%	-7.25%	31.85%
FLNG	72 Outperform	$1.25B	12.36	12.69%	12.65%	-3.95%	-2.25%
GLNG	68 Neutral	$4.39B	1,587.88	0.13%	2.38%	-10.89%	-97.48%
Sector *	58 Neutral	$7.43B	3.43	-4.49%	10.08%	0.81%	-49.42%