Cheniere Energy (LNG) reported earnings growth of 9.7% over the past year, which is significantly below its five-year average growth of 38.6% per year. The company’s net profit margins narrowed to 21.1% from last year’s 23.4%, and forecasts point to a 6.4% annual decline in earnings over the next three years. Revenue is expected to grow by 7% per year, which is slower than the US market’s 10.3% pace.
See our full analysis for Cheniere Energy.
The real test is how these numbers compare with the prevailing narratives. Some ideas may face challenges, while others could be reinforced upon further analysis.
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NYSE:LNG Earnings & Revenue History as at Nov 2025
Cheniere’s current share price is $212.00, far below its estimated DCF fair value of $465.14 and the consensus analyst price target of $271.55.
According to the analysts’ consensus view, this gap in value challenges skepticism about near-term headwinds:
The company’s PE ratio of 11.6x is more attractive than both its peer average of 17x and the broader US oil and gas industry average of 12.6x.
Despite forecasts for earnings and margins to soften, analysts maintain targets above today’s price. This suggests confidence in Cheniere’s ability to generate stable long-term cash flow from new supply agreements and resilient demand for LNG exports.
Strong consensus points to continued upside as Cheniere’s long-term LNG contracts and fair value upside outweigh near-term margin pressure. 📊 Read the full Cheniere Energy Consensus Narrative.
Profit margins are expected to decrease from 21.1% today to just 13.0% in three years, representing a sharper contraction than industry averages.
Analysts’ consensus narrative highlights that while EBITDA and revenues are likely to benefit from new long-term contracts and debottlenecking projects,
Accelerating global LNG supply and evolving decarbonization policies could put pressure on both margins and future earnings. Significant upcoming capital expenditures heighten the risk if market or regulatory conditions worsen.
Stable contracted cash flows are expected to cushion earnings volatility. However, margin compression raises the bar for outperformance over time if LNG prices or demand slip.
Cheniere’s price-to-earnings ratio of 11.6x is lower than the industry average of 12.6x and direct peers at 17x. The current share price of $212.00 trades at a notable discount to both analyst targets and DCF-estimated fair value.
From the analysts’ consensus perspective, this undervaluation stands out because
Despite a forecasted decline in earnings, the stock presents more compelling value based on forward multiples than many industry rivals due to its long-term contracts and proven growth initiatives.
Analysts believe downside is mitigated as long-term supply agreements help preserve cash flows, even as sector-wide revenue uncertainty and global LNG competition intensify.
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