Taking a look at the recent 8-K filing, we can extract the following data. The company reported net income of $109.7 million, or $0.48 per share for the three months ended December 31, 2016, compared to a net loss of $291.1 million, or $1.28 per share for the comparable 2015 period. For the twelve months ended December 31, 2016, Cheniere reported a net loss of $610.0 million, or $2.67 per share. The losses are significant, but this could be for research and development, which you can find once you dive deeper into the financials.
Now, taking a look at the chart using the monthly time frame, we can see that price has fallen hard from the highs around $80, but have began to climb back from the fall. This could be occurring from the people that took profits at the highs, or there was a fundamental underlying issue. Despite the fall, the chart appears to well and nothing stands out as an issue, but you have to take the fundamental information into account because energy companies have the tendency to be very volatile.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Cheniere Energy income statement, its balance sheet, and the statement of cash flows. Potential Cheniere Energy investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Cheniere Energy investors may use each financial statement separately, they are all related. The changes in Cheniere Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cheniere Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Cheniere Energy
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Cheniere Energy performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Cheniere Energy shares is the value that is considered the true value of the share. If
the intrinsic value of Cheniere is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Cheniere Energy. Please read more on our
fundamental analysis page.
How effective is Cheniere Energy in utilizing its assets?
Cheniere Energy reports assets on its Balance Sheet. It represents the amount of Cheniere resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Cheniere Energy aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Oil & Gas Storage & Transportation space. To get a better handle on how balance sheet or income statements item affect Cheniere volatility, please check the breakdown of all its
fundamentals.
Are Cheniere Energy Earnings Expected to grow?
The
future earnings power of Cheniere Energy involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Cheniere Energy factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Cheniere Energy
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Cheniere
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Cheniere Energy earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Cheniere Energy dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Cheniere one year expected dividend income is about USD1.04 per share.
The Cheniere Energy's current
Dividend Payout Ratio is estimated to increase to 0.04, while
Dividends Paid is projected to decrease to roughly 223.9
M.
Investing in dividend-paying stocks, such as Cheniere Energy is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Cheniere Energy must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Cheniere Energy. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Cheniere Energy Gross Profit
Cheniere Energy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cheniere Energy previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cheniere Energy Gross Profit growth over the last 10 years. Please check Cheniere Energy's
gross profit and other
fundamental indicators for more details.
Breaking it down a bit more
Risks
For a large list of the risks the company finds, be sure to take a look at the most recent 10-K filing as this will also have details along side the risks. For now, here are a couple to keep in mind. First, the company has to ensure they can handle to volatile prices in commodities. If not, they could end up losing money at a quick rate and falling to a point of no return. Secondly, the weather conditions can dictate demand for the products, which can influence production and sales. It’s important to ensure that you understand what can happen and if your portfolio is able to handle the moves.
Conclusion
Overall, the company may have the potential to grow, but that can only be determined with more research. For now, complete your own research and determine if this is a good fit for your current situation. Compare all of your options to find the best fit and if you still have questions, reach out to an investing professional as they can help point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Cheniere Energy. Please refer to our
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