Golar Lng Ltd (GLNG)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary when a commodity-linked infrastructure business trades at a premium while its financials are mixed. Golar LNG designs, converts, owns and operates floating LNG infrastructure—an asset-heavy, cyclical business. In the 2026 second quarter, revenue was $130.5 million and net income was $38.3 million, a 29.33% net margin, which looks healthy for one quarter. But the broader provided figures show declining revenue and a sharp profit decline, and trailing free cash flow is -$144.5 million, a -2.7% FCF yield. A business that consumes cash while profits fall is not compounding in the way I like. At the close on 2026-10-13, the price was $48.00. FairStock's calculations show a P/E of 32.88, P/B of 2.52, EV/EBITDA of 16.20, ROE of 10.12% and ROCE of only 3.44%. The Graham Number is $25.00, implying a -92% margin of safety, which tells me the price is far above a conservative asset-earnings benchmark. Debt is meaningful at a D/E of 1.22, and the Altman Z-Score of 1.20 and Piotroski F-Score of 4/9 suggest financial fragility rather than fortress strength. The dividend yield is 1.93%, but with negative free cash flow the payout is not comfortably covered by internally generated cash. The FairStock Score is 34/100. The potential moat comes from long-lived FLNG infrastructure, but the numbers do not yet show durable excess returns. The Lynch category is none, because only zero years of filed results are available under the stated rule; I need a longer record. At this price, I see more hope than margin of safety.

In plain English: The company owns and runs floating plants and ships that turn natural gas into a liquid form for transport. Its latest quarter was profitable, but overall the business looks weak: sales and profits have been falling, it is spending more cash than it brings in, and it carries a lot of debt. At $48 a share, the price looks expensive compared with its earnings and book value, so the stock seems to need future growth that has not shown up yet.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer