How Profitable is Cheniere Energy?

Large-cap Oil & Gas Transportation and Processing company Cheniere Energy is down -2.9% during this afternoon's trading session, while the S&P 500 moved -0.8%. With last year's reported gross margins at 6.8%, you might be wondering if today's drop is an opportunity to pick up shares of a profitable company at a discount.

Is Cheniere Energy plagued with bloated overhead expenses that are eating away at an otherwise profitable business? Or is the company currently unprofitable because it is in a growth phase? A combined analysis of both gross and operating margins can help answer these questions, so that you understand what kind of business you are investing in.

Date Reported Total Revenue ($ MM) Operating Expenses ($ MM) Operating Margins (%) YoY Growth (%)
2021-12-31 15,864 1,776 -4.39 -115.58
2020-12-31 9,358 1,628 28.18 15.02
2019-12-31 9,730 1,473 24.5 -3.69
2018-12-31 7,987 909 25.44 n/a

Over the last four years, Cheniere Energy's operating margins have averaged 18.4% and are growing at a rate of -34.8%. Despite the unprofitable results in the most recent year, there is no present indication that the company's lack of profitability is part of an enduring trend.

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.