Excelerate Energy (EE) has drawn investor attention after recent share price moves, with the stock up over the past week and month, while its 1 year total return remains slightly negative.
See our latest analysis for Excelerate Energy.
The recent 1 day share price return of 2.29% and 7 day share price return of 3.54% at a last close of $28.99 add to a 90 day share price return of 4.66%. The 1 year total shareholder return is a small 1.02% decline and the 3 year total shareholder return is 24.91%, suggesting momentum has picked up again after a softer patch.
If Excelerate Energy’s moves have you watching the energy space more closely, this could be a good moment to widen your scope and scan fast growing stocks with high insider ownership.
With Excelerate Energy reporting revenue of $1.19b and net income of $41.0m, and with recent returns that are mixed over different time frames, investors may wish to consider whether the current share price represents a potential entry point or whether the market is already reflecting expectations for future growth.
With Excelerate Energy last closing at $28.99 and the most followed fair value estimate sitting at $34.50, some investors see room between price and narrative.
Ongoing investments in flexible infrastructure (such as new FSRUs, LNG carrier acquisitions, and asset conversions) enable Excelerate to capture further market share as global LNG import demand grows and as countries accelerate plans to replace coal and oil with natural gas, strengthening long-term revenue potential.
Curious what earnings trajectory and margin profile are being penciled in to justify that higher value, and what kind of future P/E multiple ties it all together?
Result: Fair Value of $34.50 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this hinges on LNG demand and project execution; faster decarbonization or tougher financing conditions for fossil fuel infrastructure could quickly challenge that upbeat story.
Find out about the key risks to this Excelerate Energy narrative.
That 16% gap to the $34.50 narrative fair value is only one lens. On simple earnings ratios, Excelerate Energy trades on a P/E of 22.6x, compared with a fair ratio of 19.8x and a US Oil and Gas industry average of 13.2x. That puts the shares at a clear premium.
This kind of gap can mean the market is already paying up for the LNG story, which raises the risk that any disappointment on growth or margins could hit the share price harder. On the flip side, peers at 37.9x show investors are sometimes willing to pay even more for similar profiles. Which camp do you think Excelerate really belongs in?
