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New Fortress Energy (NFE)
NASDAQ:NFE
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New Fortress Energy
(NASDAQ:NFE)
55Neutral
Positive Factors
Contract Wins
Progress on contract wins in Puerto Rico and Brazil has increased confidence in the company's estimates despite execution risks.
Debt Management
The sale of the Jamaica business is key to a recovery in the share price and addressing the near-term debt maturities.
Growth Opportunities
NFE has registered significant capacity for upcoming power auctions in Brazil, indicating growth potential in the region.
Negative Factors
Dividend Delays
NFE announced that its previously declared $0.10/sh common stock dividend will be delayed until the company has reached an agreement with note holders to address near-term maturities in 2025 and 2026.
Leverage and Risk
Elevated leverage and a higher interest burden increase execution risks.
Project Delays
A series of project delays, cost overruns on FLNG, and the early cancellation of the FEMA contract in Puerto Rico have put pressure on NFE's balance sheet, weighing on shares.
New Fortress Energy (NFE) vs. S&P 500 (SPY)
Market Cap
$1.57B
Dividend Yield7.38%
Average Volume (3M)8.61M
Price to Earnings (P/E)11.1
Beta (1Y)1.94
Revenue Growth-2.01%
EPS Growth-146.98%
CountryUS
Employees722
SectorUtilities
Sector Strength88
IndustryRegulated Gas
Share Statistics
EPS (TTM)-1.27
Shares Outstanding273,771,820
10 Day Avg. Volume11,813,754
30 Day Avg. Volume8,614,637
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.29
Price to Cash Flow (P/CF)1.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.20Price Target Upside125.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
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 makes money primarily through the sale of natural gas and LNG. The company's revenue streams include the production and delivery of LNG to power plants and industrial customers, where it is used as a cleaner alternative to coal and oil. NFE also generates income by operating liquefaction facilities that convert natural gas into LNG for easier storage and transport. Additionally, it earns from long-term purchase agreements and infrastructure development partnerships with energy providers and governments, facilitating the growth of LNG infrastructure and expanding its market reach.
New Fortress Energy Financial Statement Overview
Summary
New Fortress Energy's financial health presents a mixed picture. While there is strength in revenue generation and operational cash flow, profitability and leverage remain key concerns. The company must address its high debt levels and improve profitability to enhance its financial position. Strategic improvements in operational efficiency and debt management are essential for future growth and stability.Income Statement
New Fortress Energy shows a mixed performance in its income statement. The gross profit margin is strong, indicating good cost management, but the net profit margin is negative, highlighting issues in profitability. Although there is some revenue growth over the years, the recent decline from 2023 to 2024 is concerning. EBIT and EBITDA margins are relatively low, suggesting room for improvement in operational efficiency.60
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting the company's struggle to generate profits from shareholders' equity. The equity ratio is relatively low, suggesting a reliance on debt financing over equity.55
Neutral
Cash Flow
Cash flow analysis indicates challenges in free cash flow generation, with negative free cash flow growth. However, the operating cash flow to net income ratio is positive, suggesting that cash flows from operations are relatively healthy compared to net income. The company needs to focus on improving its free cash flow position to ensure financial stability.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.36B | 2.41B | 2.37B | 1.32B | 451.65M | Gross Profit |
| 1.09B | 1.14B | 1.19B | 581.81M | 125.30M | EBIT |
| 538.64M | 942.67M | 385.66M | 238.88M | -155.36M | EBITDA |
| 317.51M | 1.11B | 440.85M | 350.45M | -160.19M | Net Income Common Stockholders |
| -249.04M | 547.88M | 194.48M | 97.10M | -263.96M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 492.88M | 155.41M | 675.49M | 187.51M | 601.52M | Total Assets |
| 12.87B | 10.50B | 7.71B | 6.88B | 1.91B | Total Debt |
| 9.50B | 7.37B | 4.89B | 4.14B | 1.36B | Net Debt |
| 9.01B | 7.22B | 4.22B | 3.95B | 757.84M | Total Liabilities |
| 10.87B | 8.72B | 6.26B | 4.88B | 1.53B | Stockholders Equity |
| 1.88B | 1.64B | 1.29B | 1.79B | 366.96M |
| Cash Flow | Free Cash Flow | |||
| -2.03B | -2.21B | -818.90M | -584.58M | -282.56M | Operating Cash Flow |
| 586.74M | 824.76M | 355.11M | 84.77M | -125.57M | Investing Cash Flow |
| -2.07B | -2.90B | -82.73M | -2.27B | -157.63M | Financing Cash Flow |
| 2.22B | 1.53B | 321.96M | 1.82B | 819.50M |
New Fortress Energy Technical Analysis
Negative
5.42
Price Trends
10.53
Negative
11.68
Negative
12.67
Negative
Market Momentum
-0.60
Positive
33.11
Neutral
5.59
Positive
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 5.42 is below the 20-day moving average (MA) of 8.87, below the 50-day MA of 10.53, and below the 200-day MA of 12.67, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 33.11 is Neutral, neither overbought nor oversold. The STOCH value of 5.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NFE.
New Fortress Energy Risk Analysis
New Fortress Energy disclosed 71 risk factors in its most recent earnings report. New Fortress Energy reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.92B | 24.08 | 9.00% | 2.05% | 17.72% | 11.33% | |
75 Outperform | $4.40B | 18.78 | 7.59% | 3.68% | -12.16% | -5.73% | |
69 Neutral | $1.25B | 18.32 | 12.63% | 6.77% | -4.50% | -33.18% | |
65 Neutral | $11.76B | 15.57 | 6.23% | 4.62% | 5.52% | -8.96% | |
64 Neutral | $1.63B | 19.91 | 5.91% | 4.85% | -3.71% | -21.36% | |
55 Neutral | $1.57B | 11.07 | -14.16% | 7.38% | -2.01% | -146.98% | |
40 Underperform | $1.40B | ― | -82.38% | ― | ― | ― |
* Utilities Sector Average
Performance Comparison
NFE
New Fortress Energy
6.68
-22.27
-76.93%
CPK
Chesapeake Utilities
126.77
28.00
28.35%
NWN
Northwest Gas
40.40
6.41
18.86%
SPH
Suburban Propane
19.88
1.38
7.46%
OGS
ONE Gas
73.38
12.82
21.17%
CTRI
Centuri Holdings, Inc.
17.74
-6.21
-25.93%
New Fortress Energy Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -40.04% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth in EBITDA and successful capital market activities. Key assets like FLNG are performing exceptionally well. However, the call highlighted challenges with debt management and dependence on asset sales for deleveraging.Highlights
Exceptional Financial Performance
Achieved $313 million in EBITDA for Q4 2024, a 50% increase over previous guidance, and confirmed guidance for $1 billion in EBITDA for 2025.
FLNG Asset Performance
FLNG asset was a major contributor to earnings, operating above nameplate capacity, achieving 120% of capacity, and shipping twelve cargoes totaling approximately 24 TBtu.
Strong Capital Markets Activity
Raised $409 million in new equity, extended $900 million revolver to 2027, and issued $2.7 billion bond extending maturity to 2029.
Brazil Market Expansion
Operating two LNG terminals with a supply capacity of approximately 200 TBtu/year each, and secured over 2.2 GW with long-term power purchase agreements.
Puerto Rico Growth Potential
Potential to expand gas supply significantly, with conversion of existing plants to gas and a new 20-year gas contract for a power plant coming online in 2028.
Lowlights
Debt and Financing Challenges
Incurred $235 million in charges related to debt extinguishment in Q4 2024, impacting net income negatively.
PREPA Incentive Contract Termination
Terminated PREPA incentive contract, resulting in the reversal of previously recognized revenue, impacting adjusted EBITDA by $83 million.
Continued Reliance on Asset Sales
Asset sales needed to deleverage balance sheet, with efforts focused on selling Jamaican assets.
Company Guidance
During the New Fortress Energy Inc. Fourth Quarter 2024 Earnings Call, CEO Wesley Edens highlighted several key financial metrics and strategic initiatives. The company reported a strong quarterly EBITDA of $313 million, representing a 50% increase over prior guidance, and confirmed a 2025 revenue target of $1 billion. The company's integrated gas-to-power operations span five countries, with assets including seven terminals and nearly ten gigawatts of power capacity. The FLNG asset's performance significantly boosted earnings, while asset sales and deleveraging remain priority areas. Recently, New Fortress Energy raised $409 million in equity, executed a $2.7 billion bond issuance, and closed a $425 million term loan B upsize to strengthen its balance sheet. The company is actively pursuing long-term growth opportunities, particularly in Puerto Rico and Brazil, and aims to reduce debt and optimize its gas supply chain. The call also detailed ongoing construction projects and potential capacity expansions, underscoring a strategic focus on sustainable growth and operational efficiency.New Fortress Energy Corporate Events
M&A TransactionsBusiness Operations and Strategy
New Fortress Energy Sells Jamaican Assets for $1.055 Billion
Neutral
Mar 27, 2025
On March 26, 2025, New Fortress Energy Inc. announced the sale of its Jamaican assets and operations to Excelerate Energy Limited Partnership for $1.055 billion. This transaction, expected to close in the second quarter of 2025, is part of New Fortress Energy’s strategy to optimize its asset portfolio and enhance financial flexibility. The sale includes an LNG import terminal, offshore floating storage and regasification terminal, and a 150 MW Combined Heat and Power Plant in Jamaica. This move marks a significant step in New Fortress Energy’s efforts to streamline operations while Excelerate Energy aims to expand its global market presence and continue providing sustainable energy solutions in Jamaica.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.