Golar Lng Ltd (GLNG)

FairStock Score: 34/100 — RISKY

Key Financials

Strengths

• Revenue growth of 101.5% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($16) with negative 235% margin of safety—limited downside protection
• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Golar Lng Ltd is a small-cap energy company valued at $5.3 billion. The business generates $394 million in annual revenue with a 2.6% net margin. From a quality standpoint, Golar shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.2 warrants caution. On valuation, the stock is commanding a steep 87.8x multiple, with trades far above its Graham Number ($16) with no margin of safety. Growth dynamics show revenue growing at 101.5% and profit growth of 130.5%. The 1.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 34/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Golar's 101% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 88x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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