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Cheniere Energy, Inc.

Data period: Annual Quarterly Graham uses annual
NYSE · Energy
Cheniere Energy, Inc.
LNG · Oil & Gas Midstream
$227.03
▼ -4.38 (-1.89%)
Cached · 10 min
Overall Grade
F
Defensive
F
Enterprising
Profitability
F
Gross Profit Margin -57.1%
Operating Margin -59.4%
Net Income Margin -59.7%
Fin. Health
F
Years to Pay Off Debt -7.5 yrs
Working Capital vs Long-Term Debt -$25.3B
Working Capital -$3.1B
Valuation
F
Price-to-Book 12.67x
Cash Flow
C
Free Cash Flow $344M
Owner Earnings -$2.4B
About Cheniere Energy, Inc.
Cheniere Energy, Inc., an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States. The company owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas. It also owns and operates the Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several large interstate and intrastate pipelines; and the Corpus Christi pipeline, a 21-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with interstate and intrastate natural gas pipelines. In addition, the company engages in the LNG and natural gas marketing business. Cheniere Energy, Inc. was incorporated in 1983 and is headquartered in Houston, Texas.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Cap $47.6B
Enterprise Value $79.8B
P/E (TTM) 38.41
Dividend Yield 0.94%
Exchange NYSE
Gross Profit -57.1%
Operating Margin -59.4%
Net Margin -59.7%
Sector Energy
Industry Oil & Gas Midstream
Employees 1717
Country United States
Showing Key Metrics
Income Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Gross Profit % -57.1% 71.6% N/A
Operating Margin % -59.4% 69.8% N/A
Net Income % -59.7% 42.2% N/A
Diluted EPS -16.65 10.68 N/A
Balance Sheet Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Total Assets $46.8B $47.9B N/A
Total Debt $26.4B $25.5B N/A
Working Capital -$3.1B -$224M N/A
Years to Pay Debt -7.54 11.08 N/A
Cash Flow Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Free Cash Flow $344M $1.3B N/A
Owner Earnings -$2.4B $3.4B N/A
CapEx % of Net Income N/A 32.3% N/A
📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $5.4B ▲ $5.9B +7.8%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 20.0% ▼ -57.1% -77.0pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -64.1% ▼ -59.4% +4.6pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 6.5% ▼ -59.7% -66.2pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$5.9B/qtr (≈$23.5B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.57x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$344M
vs Positive
Operating Cash Flow
$1.1B
Latest quarter · Buffett's cash reality check
ROIC
-7.0%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
5.5x
Net Assets: $8.7B
Asset Context — Oil & Gas Midstream
Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.
⚠️ Net margin compressed 66.2pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
Peers & Industry
No auto-detected peers for Oil & Gas Midstream. You can manually compare LNG against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.62%
Low — management has little skin in the game
Return on Equity (ROE)
-93.3%
Weak — poor returns on equity
Return on Assets (ROA)
-7.5%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$2.7B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+3.5% YoY
Debt is roughly stable
Leadership Team
Jack Fusco
President, CEO & Chairman
Age 63
Pay: $6,355,985
Zach Davis
Executive VP & CFO
Age 40
Pay: $2,290,538
Maas Hinz
Senior Vice President of Operations
Age 52
Pay: $1,812,154
Randy Bhatia
Vice President of Investor Relations
Top Institutional Holders
Institution % Owned Shares
Blackrock Inc. 8.52% 17,852,083
Vanguard Portfolio Management LLC 4.45% 9,324,645
Vanguard Capital Management LLC 4.37% 9,150,289
State Street Corporation 2.96% 6,194,544
Morgan Stanley 2.49% 5,209,126
Canada Pension Plan Investment Board 1.94% 4,074,529
JPMORGAN CHASE & CO 1.90% 3,971,663
Geode Capital Management, LLC 1.88% 3,945,766
⚠️ Very high debt-to-equity — leverage risk
⚠️ Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
-0.00
Defensive — moves inversely to the market
Short Interest
1.9% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
3.21x
High leverage — significant financial risk
Current Ratio
0.57x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $186.20 Current: $227.03 High: $300.89
Currently at 36% of 52-week range

Cheniere Energy, Inc. (LNG) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's Fair Value: N/A (negative EPS). Gross profit margin: -57.1%. Operating margin: -59.4%. Net margin: -59.7%. Market cap: $47.6B. Sector: Energy. Industry: Oil & Gas Midstream. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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