FLEX LNG Ltd.’s (NYSE:FLNG) price-to-earnings (or “P/E”) ratio of 14.2x might make it look like a buy right now compared to the market in the United States, where around half of the companies have P/E ratios above 20x and even P/E’s above 35x are quite common. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
Recent times haven’t been advantageous for FLEX LNG as its earnings have been rising slower than most other companies. The P/E is probably low because investors think this lacklustre earnings performance isn’t going to get any better. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.
View our latest analysis for FLEX LNG
NYSE:FLNG Price to Earnings Ratio vs Industry January 10th 2026 If you’d like to see what analysts are forecasting going forward, you should check out our free report on FLEX LNG. Is There Any Growth For FLEX LNG?
FLEX LNG’s P/E ratio would be typical for a company that’s only expected to deliver limited growth, and importantly, perform worse than the market.
If we review the last year of earnings growth, the company posted a worthy increase of 6.7%. Ultimately though, it couldn’t turn around the poor performance of the prior period, with EPS shrinking 55% in total over the last three years. Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth.
Turning to the outlook, the next year should generate growth of 17% as estimated by the four analysts watching the company. With the market predicted to deliver 16% growth , the company is positioned for a comparable earnings result.
With this information, we find it odd that FLEX LNG is trading at a P/E lower than the market. It may be that most investors are not convinced the company can achieve future growth expectations.
The Bottom Line On FLEX LNG’s P/E
Using the price-to-earnings ratio alone to determine if you should sell your stock isn’t sensible, however it can be a practical guide to the company’s future prospects.
We’ve established that FLEX LNG currently trades on a lower than expected P/E since its forecast growth is in line with the wider market. When we see an average earnings outlook with market-like growth, we assume potential risks are what might be placing pressure on the P/E ratio. It appears some are indeed anticipating earnings instability, because these conditions should normally provide more support to the share price.
And what about other risks? Every company has them, and we’ve spotted 2 warning signs for FLEX LNG you should know about.
If these risks are making you reconsider your opinion on FLEX LNG, explore our interactive list of high quality stocks to get an idea of what else is out there.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.