Golar LNG Ltd (GLNG, Financial) has recently experienced a notable uptick in its stock price, with a 13.21% gain over the past week and a 16.14% gain over the past three months. The company's market capitalization now stands at $2.46 billion, with a current price of $23.55. When compared to the GF Value of $24.3, Golar LNG is considered fairly valued, a status that has been consistent over the past quarter, as the past GF Value was $22.63. This suggests that the stock's recent performance is in line with its intrinsic value, as defined by GuruFocus.com.
Introduction to Golar LNG Ltd
Golar LNG Ltd, operating within the Oil & Gas industry, is a midstream LNG company that specializes in the transportation, regasification, liquefaction, and trading of LNG. The company's business segments include Shipping, FLNG, Power, and Corporate and other, with the FLNG segment being the primary revenue generator. The recent stock price surge prompts a closer look at the company's financial health and market position.
Assessing Profitability
With a Profitability Rank of 4/10, Golar LNG's profitability is moderate within its industry. The company's operating margin stands at an impressive 19.90%, outperforming 69.22% of 981 companies in the sector. However, other profitability metrics such as ROE at 2.54%, ROA at 1.40%, and ROIC at 1.59% indicate that there is room for improvement when compared to industry peers. Over the past decade, Golar LNG has managed to achieve profitability in three years, which is better than 31.47% of 950 companies in the same space.
Growth Prospects
The company's Growth Rank is a robust 8/10, indicating strong growth potential. Despite a 3-Year Revenue Growth Rate per Share decline of -17.90%, Golar LNG's 5-Year Revenue Growth Rate per Share has increased by 1.30%. Looking ahead, the company's Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at an optimistic 16.26%, which is higher than 92.75% of 262 companies in the industry. This suggests that Golar LNG has the potential for significant revenue expansion in the coming years.
Investor Confidence
Significant holders of Golar LNG stock demonstrate confidence in the company's future. Donald Smith & Co is the top holder with 2,716,761 shares, representing 2.59% of the company. Francisco Garcia Parames (Trades, Portfolio) follows closely with 2,438,764 shares, accounting for 2.33%, and Steven Cohen (Trades, Portfolio) holds 491,962 shares, making up 0.47%. The investment by these notable holders indicates a belief in the company's value proposition and growth trajectory.
Competitive Landscape
When compared to its competitors, Golar LNG holds its ground within a competitive market cap range. International Seaways Inc (INSW, Financial) has a slightly higher market cap of $2.55 billion, while Kinetik Holdings Inc (KNTK, Financial) and Teekay Tankers Ltd (TNK, Financial) have market caps of $2.05 billion and $1.83 billion, respectively. Golar LNG's recent stock performance and growth prospects may position it favorably against these competitors in the eyes of investors.
Conclusion
In conclusion, Golar LNG Ltd's stock performance over the past quarter has been impressive, aligning well with its GF Value and maintaining a status of being fairly valued. The company's profitability, while moderate, shows a strong operating margin, and its growth prospects appear promising with a high Total Revenue Growth Rate estimate. The confidence shown by significant holders further bolsters the stock's appeal. When juxtaposed with its competitors, Golar LNG's market position and potential for growth make it a noteworthy player in the Oil & Gas industry. Investors may find Golar LNG an attractive option for their portfolios, considering its recent performance and future outlook.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
