How Profitable Is Cheniere Energy?

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%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.