Cheniere Energy Partners LP Common Units (CQP)

FairStock Score: 69/100 — STEADY

Key Financials

Strengths

• Generates $2.3 billion in annual free cash flow (7.7% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Healthy net profit margin of 12.0% showing consistent profitability
• Revenue growth of 18.3% demonstrates strong top-line momentum
• Attractive 5.1% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($9) with negative 580% margin of safety—limited downside protection
• High leverage at 35.30x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Cheniere Energy Partners LP Common Units is a mid-cap energy company valued at $29.9 billion. The business generates $10.8 billion in annual revenue with a 12.0% net margin and $2.3 billion in free cash flow. From a quality standpoint, Cheniere shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.5 warrants caution. On valuation, the stock is attractively valued at 14.8x earnings, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 18.3% and profit growth of 106.6%. The 5.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 78/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Cheniere's 18% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. With $2.3 billion in annual free cash flow (7.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 35.3x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer