Large-cap Oil & Gas Transportation and Processing company Cheniere Energy is down -4.8% during this afternoon's trading session, while the S&P 500 moved -1.8%. With last year's reported gross margins at -4.2%, you might be wondering if today's drop is an opportunity to pick up shares of a profitable company at a discount.
| Date Reported | Revenue ($) | Cost of Revenue ($) | Gross Margins (%) | YoY Growth (%) |
|---|---|---|---|---|
| 2021-12-31 | 17,531,000,000.0 | 15,224,000,000.0 | 13.16 | -67.87 |
| 2020-12-31 | 9,293,000,000.0 | 5,487,000,000.0 | 40.96 | 28.68 |
| 2019-12-31 | 9,157,000,000.0 | 6,242,000,000.0 | 31.83 | -8.4 |
| 2018-12-31 | 7,995,000,000.0 | 5,217,000,000.0 | 34.75 | n/a |
Cheniere Energy's gross margins are currently in the green, but this might not be the case for long. Since its cost of revenue is growing at a rate of 81.8%, its gross margins have been shrinking -15.9% on average each year.
| Date Reported | Total Revenue ($) | Operating Expenses ($) | Operating Margins (%) | YoY Growth (%) |
|---|---|---|---|---|
| 2021-12-31 | 17,531,000,000.0 | 18,260,000,000.0 | -4.16 | -114.64 |
| 2020-12-31 | 9,293,000,000.0 | 6,653,000,000.0 | 28.41 | 10.29 |
| 2019-12-31 | 9,157,000,000.0 | 6,798,000,000.0 | 25.76 | 2.26 |
| 2018-12-31 | 7,995,000,000.0 | 5,981,000,000.0 | 25.19 | n/a |
Despite the negative operating margins in the last year, Cheniere Energy's average is still positive, indicating that the company is generally profitable. There's a red flag, however, indicating that the last year could be part of a negative trend. Cheniere Energy's operating expenses are growing at an average rate of 62.0%, whilst its revenues are growing at only 34.9%.
