Cheniere Energy (LNG) AI Stock Analysis

• Market Cap: $54.09B
• Dividend Yield: 0.79%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.63
• Revenue Growth: -2.16%
• EPS Growth: -33.56%
• Country: US
• Employees: 1,714
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.57
• Shares Outstanding: 221,785,480
• 10 Day Avg. Volume: 1,939,820
• 30 Day Avg. Volume: 1,764,060
• PEG Ratio: -4.20
• Price to Book (P/B): 9.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.60
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 5.62
• Enterprise Value/Ebitda: 1.62
• 1Y Price Target: $258.93
• Price Target Upside: 6.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 77 Outperform
• Price Target: $265.00 ▲(9.01%Upside)

Cheniere Energy's overall stock score is driven by its strong financial performance and strategic achievements highlighted in the earnings call. Despite some balance sheet risks and market volatility challenges, the company's operational progress and fair valuation provide a solid investment profile.

Positive Factors

Capital Deployment

LNG is tracking ahead of its $20B capital deployment goal before the end of 2025 vs its goal of 2026, and could provide an updated framework before end of year.

Flexibility and Growth

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

Production Outlook

The outlook for upside in FY25 appears greater given LNG’s higher production outlook and unsold, uncontracted CCIII volumes.

Negative Factors

Geopolitical Risks

The company took a constructive view on potential peace talks in relation to the Russia-Ukraine War, noting that lower international prices are good for long-term contract.

Market Impact

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

Spot Margins

LNG maintained guide despite spot margins falling from >$8/mcf to <$6/mcf.

Cheniere Energy Business Overview & Revenue Model

Company Description

Cheniere Energy, Inc., an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States. It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines; and operates Corpus Christi pipeline, a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines. It is also involved in the LNG and natural gas marketing business. The company was incorporated in 1983 and is headquartered in Houston, Texas.

How the Company Makes Money

Cheniere Energy makes money through the production and export of liquefied natural gas (LNG). The company's revenue model primarily revolves around long-term contracts with customers worldwide, ensuring a steady and predictable cash flow. These contracts often include take-or-pay agreements, where customers are obligated to pay for LNG regardless of whether they take delivery, providing Cheniere with financial stability. Additionally, Cheniere generates revenue through spot market sales, where LNG is sold at market rates based on supply and demand dynamics. Significant partnerships with global energy companies and investments in infrastructure expansions further enhance Cheniere's earnings potential, as they enable the company to increase production capacity and efficiency. The company's strategic positioning in the LNG value chain and its ability to access diverse markets contribute significantly to its financial performance.

Cheniere Energy Financial Statement Overview

Summary

Cheniere Energy showcases strong financial performance marked by high profitability margins and effective cash flow management. Despite solid income and cash flow metrics, the balance sheet indicates moderate leverage and a weaker equity position, suggesting some financial risk.

Income Statement

Cheniere Energy's income statement shows solid performance in TTM with a gross profit margin of 54.57%, net profit margin of 18.37%, and an EBIT margin of 35.13%. The revenue growth rate is 7.56% from the previous annual period, indicating positive business momentum. However, the EBITDA margin decreased compared to EBIT, suggesting higher depreciation or amortization costs.

Balance Sheet

The balance sheet of Cheniere Energy reflects a debt-to-equity ratio of 0.51, showing moderate leverage compared to the industry. The equity ratio stands at 12.82%, indicating a weaker equity position relative to total assets. The return on equity for TTM is an impressive 55.61%, driven by strong net income, but the overall capital structure still poses potential risks due to relatively high liabilities.

Cash Flow

Cheniere Energy's cash flow statement demonstrates robust operating cash flow to net income ratio of 1.73, indicating efficient cash generation from operations. The free cash flow to net income ratio is 1.94, highlighting strong free cash generation relative to net income. However, the free cash flow growth rate is a modest 90.95%, reflecting a decline compared to the previous period.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.89B	15.70B	20.39B	33.43B	15.86B	9.36B
	Gross Profit
9.22B	6.61B	16.01B	5.00B	-364.00M	2.94B
	EBIT
5.93B	6.13B	15.49B	4.56B	-701.00M	2.63B
	EBITDA
7.31B	4.27B	16.91B	5.62B	171.00M	3.57B
	Net Income Common Stockholders
3.10B	3.25B	9.88B	1.43B	-2.34B	-85.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.64B	2.64B	4.07B	1.35B	1.40B	1.63B
	Total Assets
43.86B	43.86B	43.08B	41.27B	39.26B	35.70B
	Total Debt
25.59B	25.59B	26.79B	27.95B	31.95B	31.66B
	Net Debt
22.95B	22.95B	22.72B	26.60B	30.55B	30.03B
	Total Liabilities
33.80B	33.80B	34.06B	41.44B	39.29B	33.48B
	Stockholders Equity
5.70B	5.70B	5.06B	-2.97B	-2.57B	-191.00M
Cash Flow		Free Cash Flow
6.03B	3.16B	6.30B	8.69B	1.50B	-574.00M
	Operating Cash Flow
5.38B	5.39B	8.42B	10.52B	2.47B	1.26B
	Investing Cash Flow
-2.16B	-2.28B	-2.20B	-1.84B	-912.00M	-1.95B
	Financing Cash Flow
-5.18B	-4.45B	-4.18B	-8.01B	-1.82B	-235.00M

Cheniere Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 243.09
• 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 243.09 is above the 20-day moving average (MA) of 235.18, above the 50-day MA of 229.76, and above the 200-day MA of 212.07, indicating a bullish trend. The MACD of 3.35 indicates Negative momentum. The RSI at 61.45 is Neutral, neither overbought nor oversold. The STOCH value of 81.32 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	77 Outperform	$54.09B	17.82	63.13%	0.79%	-2.16%	-33.56%
EPD	77 Outperform	$67.37B	11.67	20.49%	6.83%	9.10%	4.37%
ET	75 Outperform	$60.16B	13.31	13.73%	7.33%	1.04%	22.31%
KMI	73 Outperform	$62.28B	24.42	8.43%	4.09%	2.02%	5.40%
WMB	71 Outperform	$73.94B	32.49	18.32%	3.18%	8.63%	-20.98%
CQP	59 Neutral	$28.51B	14.08	124.29%	5.54%	3.94%	9.35%
Sector *	57 Neutral	$7.14B	3.09	-4.49%	5.67%	0.82%	-49.15%

Cheniere Energy Corporate Events

Cheniere Energy Holds 2025 Annual Shareholders Meeting

On May 15, 2025, Cheniere Energy, Inc. held its 2025 Annual Meeting of Shareholders, where approximately 87.99% of the company’s common stock was represented. During the meeting, shareholders elected directors for a one-year term, approved the compensation for the company’s named executive officers for 2024, and ratified KPMG LLP as the independent registered public accounting firm for 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (LNG) stock is a Buy with a $217.00 price target. To see the full list of analyst forecasts on Cheniere Energy stock, see the LNG Stock Forecast page.

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.

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.