FLNGFLEX LNG Ltd.
Is the business good?
The checks split: mostly cash-backed earnings (0.8×) and margins steady.
Operating profit is mostly backed by cash. Conversion is worsening vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Margin-driven, fat margins on slower asset turns. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FLNG?
FLEX LNG Ltd. earns 6.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.5 points below what the capital costs: growth destroys value
- Operating margin
- 51%
Operating margin · Oil & Gas Midstream median 30% · fiscal year to FY2025
- Cash conversion
- 0.80×
Cash conversion · 0.93× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Share count, year on year
- +0.11%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 46% |
| FY2021 | 59% |
| FY2022 | 58% |
| FY2023 | 59% |
| FY2024 | 56% |
| FY2025 | 51% |
Details›
- Gross marginfiscal year to FY2025
- 78%
- Operating marginfiscal year to FY2025
- 51%
- Net marginfiscal year to FY2025
- 22%
- Free cash flow margin
- 40%
- Revenue, trailing twelve months
- $348M
- Free cash flow, trailing twelve months
- $141M
- Net income, trailing twelve months
- $75M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.