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New Fortress Energy (NFE)
NASDAQ:NFE
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New Fortress Energy
(NASDAQ:NFE)
Rating:54Neutral
Price Target:
$3.50
▲( 25.90% Upside)
Positive Factors
Asset Sale
The sale of the Jamaica business is key to a recovery in the share price and addressing the near-term debt maturities.
Contract Expansion
The extension of the 80 TBtu island-wide contract in Puerto Rico for another year is aimed at converting it to a longer-term agreement linked to Henry Hub.
Market Confidence
Progress on contract wins in Puerto Rico and Brazil has increased confidence in the company's estimates despite execution risks.
Negative Factors
Earnings Performance
NFE reported 1Q25 EBITDA of $82 MM, which missed the consensus and management's estimates.
Execution Risk
There is significant execution risk in realizing the EBITDA estimate, particularly given the company's leverage.
Leverage
NFE's pro forma debt points to a relatively high Debt/EBITDA ratio, indicating a significant leverage level.
New Fortress Energy (NFE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$762.22M
Dividend Yield14.39%
Average Volume (3M)12.28M
Price to Earnings (P/E)11.1
Beta (1Y)1.13
Revenue Growth-15.03%
EPS Growth-201.87%
CountryUS
Employees722
SectorUtilities
Sector Strength87
IndustryRegulated Gas
Share Statistics
EPS (TTM)-0.73
Shares Outstanding274,180,450
10 Day Avg. Volume24,188,420
30 Day Avg. Volume12,278,593
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.03
Price to Sales (P/S)0.00
P/FCF Ratio-1.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.20Price Target Upside266.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
New Fortress Energy Business Overview & Revenue Model
Company DescriptionNew Fortress Energy (NFE) is an integrated energy infrastructure company that focuses on the production, transportation, and supply of natural gas and liquefied natural gas (LNG). Catering to sectors such as power generation, transportation, and industrial applications, NFE is committed to accelerating the world's transition to clean energy by providing affordable and reliable natural gas solutions.
How the Company Makes MoneyNew Fortress Energy makes money primarily through the sale of natural gas and LNG. The company's revenue streams include the production and delivery of LNG to power plants and industrial customers, where it is used as a cleaner alternative to coal and oil. NFE also generates income by operating liquefaction facilities that convert natural gas into LNG for easier storage and transport. Additionally, it earns from long-term purchase agreements and infrastructure development partnerships with energy providers and governments, facilitating the growth of LNG infrastructure and expanding its market reach.
New Fortress Energy Financial Statement Overview
Summary
New Fortress Energy's financial health presents a mixed picture. While there is strength in revenue generation and operational cash flow, profitability and leverage remain key concerns. The company must address its high debt levels and improve profitability to enhance its financial position. Strategic improvements in operational efficiency and debt management are essential for future growth and stability.Income Statement
New Fortress Energy shows a mixed performance in its income statement. The gross profit margin is strong, indicating good cost management, but the net profit margin is negative, highlighting issues in profitability. Although there is some revenue growth over the years, the recent decline from 2023 to 2024 is concerning. EBIT and EBITDA margins are relatively low, suggesting room for improvement in operational efficiency.60
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting the company's struggle to generate profits from shareholders' equity. The equity ratio is relatively low, suggesting a reliance on debt financing over equity.55
Neutral
Cash Flow
Cash flow analysis indicates challenges in free cash flow generation, with negative free cash flow growth. However, the operating cash flow to net income ratio is positive, suggesting that cash flows from operations are relatively healthy compared to net income. The company needs to focus on improving its free cash flow position to ensure financial stability.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.36B | 2.41B | 2.37B | 1.32B | 451.65M | Gross Profit |
| 1.09B | 1.14B | 1.19B | 581.81M | 125.30M | EBIT |
| 538.64M | 942.67M | 385.66M | 238.88M | -155.36M | EBITDA |
| 317.51M | 1.11B | 440.85M | 350.45M | -160.19M | Net Income Common Stockholders |
| -249.04M | 547.88M | 194.48M | 97.10M | -263.96M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 492.88M | 155.41M | 675.49M | 187.51M | 601.52M | Total Assets |
| 12.87B | 10.50B | 7.71B | 6.88B | 1.91B | Total Debt |
| 9.50B | 7.37B | 4.89B | 4.14B | 1.36B | Net Debt |
| 9.01B | 7.22B | 4.22B | 3.95B | 757.84M | Total Liabilities |
| 10.87B | 8.72B | 6.26B | 4.88B | 1.53B | Stockholders Equity |
| 1.88B | 1.64B | 1.29B | 1.79B | 366.96M |
| Cash Flow | Free Cash Flow | |||
| -2.03B | -2.21B | -818.90M | -584.58M | -282.56M | Operating Cash Flow |
| 586.74M | 824.76M | 355.11M | 84.77M | -125.57M | Investing Cash Flow |
| -2.07B | -2.90B | -82.73M | -2.27B | -157.63M | Financing Cash Flow |
| 2.22B | 1.53B | 321.96M | 1.82B | 819.50M |
New Fortress Energy Technical Analysis
Negative
2.78
Price Trends
6.56
Negative
9.75
Negative
10.29
Negative
Market Momentum
-1.04
Positive
33.59
Neutral
9.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NFE, the sentiment is Negative. The current price of 2.78 is below the 20-day moving average (MA) of 4.94, below the 50-day MA of 6.56, and below the 200-day MA of 10.29, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 33.59 is Neutral, neither overbought nor oversold. The STOCH value of 9.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NFE.
New Fortress Energy Risk Analysis
New Fortress Energy disclosed 71 risk factors in its most recent earnings report. New Fortress Energy reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Future sales and issuances of our Class A common stock, securities convertible or exchangeable into our Class A common stock or rights to purchase our Class A common stock could result in additional dilution of the percentage ownership of our shareholders and may cause our share price to fall. Q4, 2024
2.
Our data center infrastructure business has no operating history, and we may not recognize revenue or operating income in the future. Q4, 2024
3.
Our ability to continue as a going concern is dependent upon our ability to complete certain transactions and delay capital expenditures Q4, 2024
New Fortress Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.64B | 16.18 | 7.36% | 4.80% | 3.88% | 11.80% | |
69 Neutral | $4.46B | 17.99 | 8.08% | 3.56% | 7.73% | 2.36% | |
67 Neutral | $2.84B | 22.56 | 9.04% | 2.10% | 20.41% | 13.64% | |
63 Neutral | $8.54B | 10.36 | 4.69% | 4.37% | 4.05% | -12.96% | |
63 Neutral | $1.24B | 13.29 | 14.42% | 6.78% | 4.02% | -14.66% | |
54 Neutral | $762.22M | 11.07 | -28.47% | 14.39% | -15.03% | -201.87% | |
50 Neutral | $1.65B | 1,775.24 | 0.11% | ― | ― | ― |
* Utilities Sector Average
Performance Comparison
NFE
New Fortress Energy
2.78
-21.84
-88.71%
CPK
Chesapeake Utilities
121.87
16.00
15.11%
NWN
Northwest Gas
40.76
6.76
19.88%
SPH
Suburban Propane
19.16
1.01
5.56%
OGS
ONE Gas
74.46
17.50
30.72%
CTRI
Centuri Holdings, Inc.
18.64
-7.91
-29.79%
New Fortress Energy Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -59.00%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlights several positive developments, including a successful asset sale in Jamaica, strong progress in Brazil, and robust liquidity. However, these are balanced by challenges such as lower-than-expected earnings, delays in Brazil's capacity auction, and ongoing challenges in Puerto Rico's energy system.Q1-2025 Updates
Positive Updates
Successful Jamaica Asset Sale
The company completed the sale of its Jamaica assets for $1.055 billion, resulting in net proceeds of $800 million and a $430 million gain.
Strong Performance in Brazil
Progress in Brazil with key assets nearing operational status: a 624-megawatt power plant expected to reach COD in the second half of 2025, and a 1.6 gigawatt plant on track for mid-2026. Contracts in Brazil are inflation-linked and provide stable cash flows.
Robust Liquidity Position
Ending Q1 2025 with $448 million in cash, $275 million available under revolving credit facilities, and $393 million from asset sales, totaling over $1.1 billion in pro forma liquidity.
FSRU Charter Contracts
New FSRU contracts signed, generating approximately $200 million in future earnings and increasing annual cash flow by up to $50 million.
Positive Construction Updates
Construction progress in Brazil with CELBA plant at 95% completion and PortoCem at 54% despite challenging weather conditions.
Negative Updates
Lower-than-Expected Earnings
Q1 2025 adjusted EBITDA was $82 million, lower than initial forecasts due to delays in recognizing certain expected payments.
Postponed Brazil Capacity Auction
The Brazil capacity auction, originally scheduled for June 2025, was delayed, creating short-term uncertainty.
Puerto Rico Energy System Challenges
Puerto Rico's energy system is under-invested and antiquated, with over 50% of power generated from oil and diesel.
Restricted Cash for Brazil CapEx
Significant amounts of cash are restricted for CapEx in Brazil, limiting flexibility in the use of funds.
Company Guidance
During the NFE First Quarter 2025 Earnings Call, CEO Wes Edens provided detailed financial guidance and operational updates. Core earnings were consistent with expectations, ranging from $109 million to $177 million over recent quarters, and are projected to accelerate in the second half as new assets, particularly in Brazil, come online. The forecast for EBITDA, including gains, is elevated to $1.25 billion to $1.5 billion for the year. The recent $1.055 billion Jamaica sale generated $800 million in net proceeds and a $430 million gain, contributing to this forecast. The company anticipates resolving a $659 million FEMA claim soon and has secured $143 million in profit from re-letting surplus FSRU assets. Additionally, NFE has planned asset sales and debt reduction strategies to simplify the balance sheet, with an aim to extend debt duration and lower costs. Long-term contracts in Brazil and Puerto Rico are expected to generate $500 million in annual margin, highlighting NFE's focus on maintaining stable, long-duration cash flows.New Fortress Energy Corporate Events
M&A Transactions
New Fortress Energy Sells Jamaican Business for $1.055B
Neutral
May 21, 2025
On May 14, 2025, New Fortress Energy Inc. and Atlantic Energy Holdings LLC completed the sale of their Jamaican business to Excelerate Energy Limited Partnership for $1.055 billion in cash. This acquisition, initially announced on March 26, 2025, is expected to impact New Fortress Energy’s operations and market positioning by divesting its assets in Jamaica.
The most recent analyst rating on (NFE) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on New Fortress Energy stock, see the NFE Stock Forecast page.
M&A TransactionsBusiness Operations and Strategy
New Fortress Energy Amends Credit Agreements for Sale
Neutral
May 12, 2025
New Fortress Energy has entered into several amendments to its credit agreements in anticipation of closing the sale of its Jamaican business to Excelerate Energy Limited Partnership on May 12, 2025. These amendments, including the Twelfth Amendment to the Credit Agreement, the Fifth Amendment to the Credit Agreement, and the Eighth Amendment to the Uncommitted Letter of Credit and Reimbursement Agreement, adjust financial covenants and allow the company to use proceeds from the asset sale to reinvest in its business and repay debt. The amendments provide flexibility in financial management by waiving certain repayment requirements and adjusting covenants, potentially impacting the company’s financial strategy and stakeholder interests.
The most recent analyst rating on (NFE) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on New Fortress Energy stock, see the NFE Stock Forecast page.
M&A TransactionsBusiness Operations and Strategy
New Fortress Energy Sells Jamaican Assets for $1.055 Billion
Neutral
Mar 27, 2025
On March 26, 2025, New Fortress Energy Inc. announced the sale of its Jamaican assets and operations to Excelerate Energy Limited Partnership for $1.055 billion. This transaction, expected to close in the second quarter of 2025, is part of New Fortress Energy’s strategy to optimize its asset portfolio and enhance financial flexibility. The sale includes an LNG import terminal, offshore floating storage and regasification terminal, and a 150 MW Combined Heat and Power Plant in Jamaica. This move marks a significant step in New Fortress Energy’s efforts to streamline operations while Excelerate Energy aims to expand its global market presence and continue providing sustainable energy solutions in Jamaica.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.