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New Fortress Energy (NFE)
NASDAQ:NFE
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New Fortress Energy
(NASDAQ:NFE)
56Neutral
Positive Factors
Earnings
New Fortress Energy reported 4Q EBITDA significantly above guidance, driven by spot sales of surplus LNG volumes.
Growth Potential
NFE has registered significant capacity for upcoming power auctions in Brazil, indicating growth potential in the region.
Negative Factors
Leverage
NFE's pro forma debt points to a relatively high Debt/EBITDA ratio, indicating a significant leverage level.
New Fortress Energy (NFE) vs. S&P 500 (SPY)
Market Cap
$2.45B
Dividend Yield4.45%
Average Volume (3M)4.67M
Price to Earnings (P/E)11.1
Beta (1Y)1.31
Revenue Growth-2.01%
EPS Growth-146.98%
CountryUS
Employees677
SectorUtilities
Sector Strength84
IndustryRegulated Utilities
Share Statistics
EPS (TTM)-1.27
Shares Outstanding272,662,350
10 Day Avg. Volume6,769,546
30 Day Avg. Volume4,668,542
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.02
Price to Cash Flow (P/CF)-37.00
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
$14.00Price Target Upside51.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
New Fortress Energy Business Overview & Revenue Model
Company DescriptionNew Fortress Energy (NFE) is an integrated energy infrastructure company that focuses on the production, transportation, and supply of natural gas and liquefied natural gas (LNG). Catering to sectors such as power generation, transportation, and industrial applications, NFE is committed to accelerating the world's transition to clean energy by providing affordable and reliable natural gas solutions.
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. Strengths in revenue generation and operational cash flow are overshadowed by profitability challenges and high leverage. Improvements in operational efficiency and debt management are essential for future growth.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.44B | 2.36B | 2.41B | 2.37B | 1.32B | 451.65M | Gross Profit |
| 1.02B | 2.36B | 1.14B | 1.19B | 581.81M | 125.30M | EBIT |
| 711.53M | 538.64M | 942.67M | 385.66M | 238.88M | -155.36M | EBITDA |
| 1.05B | 317.51M | 1.11B | 440.85M | 350.45M | -160.19M | Net Income Common Stockholders |
| 191.73M | -270.11M | 547.88M | 194.48M | 97.10M | -263.96M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 296.86M | 492.88M | 155.41M | 675.49M | 187.51M | 601.52M | Total Assets |
| 8.22B | 12.87B | 10.50B | 7.71B | 6.88B | 1.91B | Total Debt |
| 5.68B | 9.50B | 7.37B | 4.89B | 4.14B | 1.36B | Net Debt |
| 5.39B | 9.01B | 7.22B | 4.22B | 3.95B | 757.84M | Total Liabilities |
| 6.77B | 10.78B | 8.72B | 6.26B | 4.88B | 1.53B | Stockholders Equity |
| 1.30B | 1.88B | 1.64B | 1.29B | 1.79B | 366.96M |
| Cash Flow | Free Cash Flow | ||||
| -2.19B | -2.03B | -2.21B | -818.90M | -584.58M | -282.56M | Operating Cash Flow |
| 433.77M | 586.74M | 824.76M | 355.11M | 84.77M | -125.57M | Investing Cash Flow |
| -2.15B | -2.07B | -2.90B | -82.73M | -2.27B | -157.63M | Financing Cash Flow |
| 1.71B | 2.22B | 1.53B | 321.96M | 1.82B | 819.50M |
New Fortress Energy Technical Analysis
Negative
9.26
Price Trends
13.17
Negative
11.69
Negative
14.17
Negative
Market Momentum
-1.07
Positive
34.10
Neutral
42.74
Neutral
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 9.26 is below the 20-day moving average (MA) of 10.73, below the 50-day MA of 13.17, and below the 200-day MA of 14.17, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 34.10 is Neutral, neither overbought nor oversold. The STOCH value of 42.74 is Neutral, 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 69 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $47.28B | 15.10 | 60.45% | 0.87% | -22.22% | -64.97% | |
76 Outperform | $141.61M | 2.75 | 11.06% | 2.54% | -4.35% | 29.57% | |
65 Neutral | $11.91B | 15.60 | 6.55% | 4.41% | 7.00% | 0.55% | |
64 Neutral | $44.81B | 15.73 | 9.55% | 3.57% | -18.00% | -7.54% | |
57 Neutral | $3.35B | 65.91 | 2.44% | 3.19% | -1.35% | -75.72% | |
56 Neutral | $2.45B | 11.07 | 12.38% | 4.45% | -2.01% | -146.98% |
* Utilities Sector Average
Performance Comparison
NFE
New Fortress Energy
9.26
-22.83
-71.14%
LNG
Cheniere Energy
211.37
56.51
36.49%
GLNG
Golar LNG
32.00
9.49
42.16%
SRE
Sempra Energy
68.79
0.01
0.01%
DLNG
Dynagas LNG Partners
3.85
1.07
38.49%
New Fortress Energy Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: 2.43% | 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
Private Placements and FinancingBusiness Operations and Strategy
New Fortress Energy Boosts Liquidity with Financing Moves
Neutral
Nov 5, 2024
New Fortress Energy Inc. has unveiled a series of financing transactions aimed at boosting liquidity and financial flexibility, exploring potential partnerships in key regions like Brazil, Puerto Rico, and Jamaica. While these moves could involve financings, commercial ventures, or asset sales, the company warns of inherent risks and uncertainties, stressing that outcomes may vary from expectations. Investors should remain cautious as actual results could differ significantly from forward-looking statements.
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.