FLEX LNG Ltd (FLNG)
Valuation Overview•Is FLEX LNG Ltd Overvalued or Undervalued?
Commands a peer premium multiple, but this multiple is justified by a strong intrinsic cash flow value.
Moderate quality score of 55/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
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Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
FLNG demonstrates strong business quality with robust profitability and healthy margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is facing top-line contraction (-0.0% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 49.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $106.8M | -2.4% | -0.0% | +16.1% | — | |
| EBITDA | $79.3M | — | -2.6% | — | — | |
| Net Income | $44.9M | -36.4% | -26.5% | — | — | |
| EPS (Diluted) | $0.83 | -36.7% | -26.7% | +55.9% | — | |
| Free Cash Flow | $76.6M | -26.2% | -13.6% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 51.7% | 57.5% | 58.7% | 44.6% |
| Operating Margin | 49.5% | 54.9% | 56.2% | 40.5% |
| Net Margin | 28.5% | 29.0% | 37.6% | 20.5% |
| FCF Margin | 42.3% | 45.8% | 36.5% | -160.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $0.62 | $0.79 | +26.6% | ||
| Q2'26 | $0.36 | $0.31 | -14.2% | ||
| Q1'26 | $0.43 | $0.43 | -0.9% | ||
| Q4'25 | $0.61 | $0.43 | -29.7% | ||
| Q3'25 | $0.45 | $0.46 | +2.2% | ||
| Q2'25 | $0.46 | $0.54 | +17.4% | ||
| Q1'25 | $0.51 | $0.57 | +11.8% | ||
| Q4'24 | $0.54 | $0.53 | -1.9% |
Total return is +35.0% (1Y), outperforming the benchmark by +19.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +34.6% | +22.2% | — |
| 1Y | +35.0% | +19.3% | +11.9% |
| 3YCAGR | +9.9% | -10.6% | +30.2% |
| 5YCAGR | +21.8% | +10.8% | +91.0% |
| 10YCAGR | +13.4% | 0.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about FLEX LNG Ltd (FLNG) valuation, health, and returns.
FLEX LNG Ltd is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. undervalued (implying +155.8% upside to DCF intrinsic value of $82.93)
FLEX LNG Ltd has multiple valuation anchors: DCF Intrinsic Value: $82.93 | Peer Relative Fair Value: $17.09 | Wall Street Analyst Target: $25.00 (implying -19.3% upside). A convergence of these signals offers higher conviction.
FLEX LNG Ltd displays fair financial health with a composite quality score of 55/100, supported by a Altman Z-Score of 0.1 (distress zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 6.1%.
FLEX LNG Ltd pays a 9.7% dividend yield, covered by a 217% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
FLEX LNG Ltd's current growth trajectory is Decelerating. The company achieved -2.4% 1Y revenue growth and -36.7% 1Y EPS growth, compared to its 3Y revenue CAGR of -0.0%.
Wall Street consensus is Hold based on 2 analysts, beating EPS expectations in 67% of recent quarters with a 1-quarter streak. The consensus price target represents a -19.3% change from current levels.
Investment risks for FLEX LNG Ltd include: -15.7% 1-year max drawdown, elevated distress risk, stretched payout ratio. Volatility risk is characterized by a beta of -0.11x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.