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New Fortress Energy (NFE)
:NFE
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New Fortress Energy
(NASDAQ:NFE)
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Rating:48Neutral
Price Target:
$2.00
▼(-5.21% Downside)
The overall stock score for NFE is primarily impacted by its financial instability, characterized by declining revenues, increasing net losses, and high leverage. Technical analysis indicates a bearish trend, further weighing on the score. Valuation concerns arise from a negative P/E ratio, despite a relatively high dividend yield. The absence of earnings call and corporate events data limits additional insights.
Positive Factors
Business Model Strength
NFE's integrated approach in LNG logistics positions it well to capitalize on growing global energy needs, providing a durable revenue base.
Market Presence
Partnerships in regions with growing energy needs expand NFE's market presence, supporting long-term growth and operational capacity.
Operational Cash Generation
Positive operational cash flow indicates NFE's ability to generate cash from core operations, essential for long-term sustainability.
Negative Factors
Declining Revenue
Inconsistent revenue growth and recent declines suggest challenges in maintaining market demand, impacting long-term financial health.
High Leverage
High leverage increases financial risk, potentially limiting NFE's ability to invest in growth and manage economic downturns.
Negative Free Cash Flow
Negative free cash flow indicates cash management issues, which could affect NFE's ability to fund operations and growth initiatives.
New Fortress Energy (NFE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$600.41M
Dividend Yield4.44%
Average Volume (3M)21.97M
Price to Earnings (P/E)11.1
Beta (1Y)1.49
Revenue Growth-15.57%
EPS Growth-423.86%
CountryUS
Employees722
SectorEnergy
Sector Strength52
IndustryRegulated Gas
Share Statistics
EPS (TTM)-2.02
Shares Outstanding284,552,830
10 Day Avg. Volume44,065,666
30 Day Avg. Volume21,971,372
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.75
Price to Sales (P/S)1.39
P/FCF Ratio-1.62
Enterprise Value/Market Cap16.09
Enterprise Value/Revenue4.79
Enterprise Value/Gross Profit13.45
Enterprise Value/Ebitda-27.72
Forecast
1Y Price Target
$3.88Price Target Upside83.89% Upside
Rating ConsensusHold
Number of Analyst Covering4
New Fortress Energy Business Overview & Revenue Model
Company DescriptionNew Fortress Energy Inc. operates as an integrated gas-to-power infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure, and Ships. The Terminals and Infrastructure segment engages in the natural gas procurement and liquefaction; and shipping, logistics, facilities and conversion, or development of natural gas-fired power generation. The Ships segment offers floating storage and regasification units, and liquefied natural gas (LNG) carriers which are leased to customers under long-term or spot arrangements. The company operates LNG storage and regasification facility at the Port of Montego Bay, Jamaica; marine LNG storage and regasification facility in Old Harbour, Jamaica; landed micro-fuel handling facility in San Juan, Puerto Rico; marine LNG storage and regasification facility in Sergipe, Brazil; and LNG receiving facility in La Paz, Mexico, as well as Miami facility. New Fortress Energy Inc. was founded in 1998 and is based in New York, New York.
How the Company Makes MoneyNew Fortress Energy generates revenue through multiple streams, primarily from the sale and distribution of liquefied natural gas (LNG) and associated services. The company earns money by contracting with various customers, including power generation facilities and industrial clients, who require reliable natural gas supply. Key revenue streams include fees for LNG terminal services, long-term contracts for gas supply, and revenue from infrastructure projects that enhance gas distribution capabilities. Additionally, strategic partnerships with governments and private sector entities in regions with growing energy needs contribute significantly to NFE's earnings, allowing the company to expand its market presence and operational capacity.
New Fortress Energy Earnings Call Summary
Earnings Call Date:Sep 05, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements, such as the successful sale of the Jamaica asset and strong liquidity, alongside challenges like lower-than-expected quarterly earnings and project delays. The company is actively addressing these through strategic refinancing and asset sales, but some uncertainties remain, particularly regarding the timing of auctions and project completions.Q1-2025 Updates
Positive Updates
Jamaica Sale Completion
The sale was completed for $1.055 billion, resulting in net proceeds of $800 million and a gain of $430 million. This transaction exceeded initial forecasts.
Strong Liquidity Position
The company ended Q1 with $448 million in cash and a pro forma liquidity of over $1.1 billion after the Jamaica sale. This positions the company well for near-term financial obligations.
Brazil Project Advancements
Significant progress has been made on power plants in Brazil, with CELBA at 95% completion and PortoCem at 54%. Both projects are on track for commercial operation dates in late 2025 and mid-2026, respectively.
High-Value Long-Term Contracts
The company has secured long-term contracts in Brazil, providing stable and predictable cash flows, particularly with Norsk Hydro and CELBA 2, which are inflation-linked and protected from gas price volatility.
EBITDA Guidance Increase
EBITDA plus gains are expected to be $1.25 billion to $1.5 billion for the year, which is higher than the previous estimate.
Negative Updates
Lower-than-Expected Quarterly Earnings
Q1 adjusted EBITDA was $82 million, lower than forecasted due to the absence of one-time gains and a $200 million net loss reported for GAAP.
Delayed Auctions in Brazil
The capacity auction scheduled for June was postponed, leading to some uncertainty, although it is expected to occur in 2025.
Challenges in Puerto Rico
Puerto Rico's energy system is outdated and under-invested, with a lack of sufficient reserve and high reliance on diesel for power generation, leading to inefficiencies and higher costs.
FLNG 2 Project Delays
No significant progress was made on the FLNG 2 project over the last 60 days, with focus diverted to other priorities such as the Jamaica sale.
Company Guidance
During the NFE First Quarter 2025 Earnings Call, the company reported consistent core earnings, with figures of $110 million, $177 million, $109 million, and $116 million over recent quarters, despite a decrease in EBITDA due to the absence of one-off results. For 2025, NFE forecasts EBITDA plus gains between $1.25 billion and $1.5 billion, with the sale of its Jamaica assets already contributing $800 million in net proceeds and a $430 million gain. The company has also highlighted its focus on debt reduction, asset sales, and leveraging long-term, high-quality cash flows, aiming to refinance its corporate debt structure. Key financial metrics include a $1.055 billion sale price for Jamaican assets and $778 million in net proceeds, while notable contracts, such as FSRU charters, are expected to add approximately $50 million in annual EBITDA. NFE's liquidity stood at over $1.1 billion at the end of Q1 2025, with plans to utilize this position to address near-term debt maturities and capitalize on growth opportunities in Brazil and Puerto Rico.New Fortress Energy Financial Statement Overview
Summary
New Fortress Energy faces financial instability with declining revenues and increasing net losses. High leverage and negative free cash flow indicate potential liquidity and solvency risks. While operational cash generation is positive, significant improvements in profitability and cash management are necessary for long-term sustainability.Income Statement
New Fortress Energy (NFE) exhibits unstable profitability with a fluctuating net income, showing a significant loss in the TTM (Trailing-Twelve-Months) period. The gross profit margin remains healthy, but the net profit margin is negative due to substantial net losses. Revenue growth is inconsistent, with recent declines. There is a concerning drop in EBITDA margin in the TTM, indicating operational challenges.55
Neutral
Balance Sheet
The balance sheet for NFE reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. However, the equity ratio shows a moderate level of equity financing. Return on equity is negative in the TTM, reflecting recent net losses. Overall, the financial stability is weakened by high liabilities relative to equity.60
Neutral
Cash Flow
NFE's cash flow statement indicates negative free cash flow growth and a substantial free cash flow deficit, highlighting liquidity challenges. The operating cash flow to net income ratio remains positive, suggesting that the company generates operational cash despite net losses. However, the free cash flow to net income ratio is negative, underscoring ongoing cash management issues.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.02B | 2.36B | 2.41B | 2.37B | 1.32B | 451.65M |
| Gross Profit | 718.06M | 1.09B | 1.14B | 1.19B | 581.81M | 125.30M |
| EBITDA | -348.47M | 317.51M | 1.11B | 440.85M | 350.45M | -160.19M |
| Net Income | -969.47M | -249.04M | 547.88M | 194.48M | 97.10M | -182.15M |
Balance Sheet | ||||||
| Total Assets | 11.96B | 12.87B | 10.50B | 7.71B | 6.88B | 1.91B |
| Cash, Cash Equivalents and Short-Term Investments | 551.11M | 492.88M | 155.41M | 675.49M | 187.51M | 601.52M |
| Total Debt | 9.41B | 9.50B | 7.37B | 4.89B | 4.14B | 1.36B |
| Total Liabilities | 10.56B | 10.87B | 8.72B | 6.26B | 4.88B | 1.53B |
| Stockholders Equity | 1.23B | 1.88B | 1.64B | 1.29B | 1.79B | 366.96M |
Cash Flow | ||||||
| Free Cash Flow | -1.89B | -2.03B | -2.21B | -818.90M | -584.58M | -282.56M |
| Operating Cash Flow | 39.62M | 586.74M | 824.76M | 355.11M | 84.77M | -125.57M |
| Investing Cash Flow | -890.48M | -2.07B | -2.90B | -82.73M | -2.27B | -157.63M |
| Financing Cash Flow | 1.38B | 2.22B | 1.53B | 321.96M | 1.82B | 819.50M |
New Fortress Energy Technical Analysis
Negative
2.11
Price Trends
2.63
Negative
3.07
Negative
6.99
Negative
Market Momentum
-0.04
Negative
47.02
Neutral
54.57
Neutral
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 2.11 is above the 20-day moving average (MA) of 2.07, below the 50-day MA of 2.63, and below the 200-day MA of 6.99, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NFE.
New Fortress Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | 1.83B | 17.26 | 7.08% | 4.39% | 8.40% | 17.90% | |
70 Outperform | 3.16B | 23.52 | 8.60% | 1.98% | 19.02% | 20.13% | |
64 Neutral | 1.22B | 12.60 | 13.56% | 7.00% | 6.29% | -1.67% | |
50 Neutral | 440.42M | 44.41 | 1.34% | ― | 12.15% | -22.09% | |
48 Neutral | $600.41M | 11.07 | -66.14% | 4.44% | -15.57% | -423.86% | |
42 Neutral | 1.87B | -571.82 | -1.21% | ― | ― | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
NFE
New Fortress Energy
2.11
-6.98
-76.79%
CPK
Chesapeake Utilities
134.08
12.54
10.32%
NWN
Northwest Gas
44.65
5.74
14.75%
SPH
Suburban Propane
18.56
1.77
10.54%
OPAL
OPAL Fuels
2.54
-1.11
-30.41%
CTRI
Centuri Holdings, Inc.
21.10
4.95
30.65%
New Fortress Energy Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
New Fortress Energy Faces Nasdaq Compliance Notice
Negative
Aug 22, 2025
On August 19, 2025, New Fortress Energy Inc. received a notice from Nasdaq indicating non-compliance with a listing rule due to the delayed filing of its Form 10-Q for the period ended June 30, 2025. The company has 60 days to submit a compliance plan and potentially up to 180 days to file the report, with no immediate impact on its Nasdaq listing. However, failure to comply could lead to delisting of its Class A common stock. The company is working diligently to meet the filing requirements within the given timeline.
Private Placements and FinancingBusiness Operations and Strategy
New Fortress Energy Amends Credit Agreement, Extends Maturity
Neutral
Aug 14, 2025
On August 8, 2025, New Fortress Energy Inc. entered into the Ninth Amendment to its Uncommitted Letter of Credit and Reimbursement Agreement, transitioning the facility from uncommitted to committed. This amendment extends the maturity date to November 14, 2025, introduces an asset sale sweep prepayment provision, and modifies fees and pricing, with commitments reduced to approximately $195,000, further decreasing to $155,000 by October 5, 2025.
Executive/Board ChangesShareholder Meetings
New Fortress Energy Elects Directors at Annual Meeting
Neutral
Jun 25, 2025
At the 2025 Annual Meeting of Stockholders held on June 18, 2025, New Fortress Energy Inc. elected three Class III directors to serve until the 2028 Annual Meeting. Additionally, stockholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and financial oversight strategies.
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.