Excelerate Energy (NYSE: EE) — Multi-Factor Analysis
Estimated reading time: 7 minutes
Key Takeaways
- Intrinsic value estimates for Excelerate Energy (NYSE: EE) suggest the stock may be significantly undervalued, with some models placing fair value at $54.11.[1]
- Valuation ratios show a P/E Ratio (TTM) of 19.52 and a high Price to Free Cash Flow Ratio of 22.85.[2]
- The company exhibits strong liquidity with a Current Ratio of 3.49 and Quick Ratio of 3.32.[3]
- Profitability is mixed: Gross Profit Margin at 83% and Operating Profit Margin at 21.9%, but a very low Net Profit Margin of 0.01%.[4]
- EE’s performance is closely tied to global LNG and natural gas prices, and it’s influenced by geopolitical factors and policy changes favoring U.S. energy exports.[5]
Table of Contents
- Excelerate Energy (NYSE: EE) — Multi-Factor Analysis
- Key Takeaways
- Fundamental Analysis
- Intermarket and Commodity Analysis
- Sector & Industry Analysis
- Float and Short Interest
- Conclusion
- Frequently Asked Questions
- References
Fundamental Analysis
Valuation:
- Intrinsic value estimates for Excelerate Energy (EE) vary. A DCF model places fair value at $54.11, suggesting the stock may be significantly undervalued compared to recent prices ($27.50–$30.68).[1]
- P/E Ratio (TTM): 19.52 (average for the sector).[2]
- Price to Free Cash Flow Ratio: 22.85 (on the higher side).[2]
- Price/Book and Price/Sales ratios are both extremely low.[3]
Profitability:
- Gross Profit Margin: 83%.
- Operating Profit Margin: 21.9%.
- Net Profit Margin: 0.01% (very low).[4]
- Return on Assets: 5.34%.[3]
Liquidity/Solvency:
- Current Ratio: 3.49 (strong liquidity).
- Quick Ratio: 3.32.[3]
Dividend:
- Modest yield at 0.64%, but a high payout ratio (58.9%) could constrain future increases.[2]
Intermarket and Commodity Analysis
Sector: EE operates in the Energy sector, focused on LNG (liquefied natural gas).
Commodity Correlation:
- EE’s fortunes are closely tied to global LNG and natural gas prices.
- As an LNG infrastructure and solutions provider, demand and pricing for natural gas and energy mixes (oil, renewables vs. gas) influence its revenue.
- LNG prices often correlate with geopolitical factors, gas market supply-demand, and broader commodity cycles.[4]
Macro Trends: Political developments or policy changes that favor U.S. energy exports or infrastructure investment can benefit EE. For example, recent increases in U.S. LNG exports align with EE’s business model.[5]
Sector & Industry Analysis
Industry Peers: EE competes with LNG infrastructure companies and traditional energy firms, although its floating storage regasification unit (FSRU) operations set it apart from pure commodity producers.
Industry Position: The company’s strong liquidity and moderate profitability suggest a stable but competitive position, potentially at risk if LNG margins compress or new export projects stall.
Float and Short Interest
The specific float (tradable public shares) and short interest are not directly provided in the recent data. As of the latest reporting, EE is a mid-cap with substantial daily volume, but no evidence points to unusually high short interest. For the latest float and short data, one would need to check NASDAQ or NYSE data.[2]
Conclusion
Excelerate Energy is fundamentally undervalued by some models, operates with strong liquidity and moderate profitability, and is highly exposed to global LNG dynamics and policy trends. While the company offers a modest dividend, its overall net margins are thin, and its share price appears notably below some intrinsic value estimates—suggesting possible upside but also reflecting sector challenges and commodity-linked volatility.[1], [4]
Frequently Asked Questions
Why is Excelerate Energy considered undervalued by some models?
Some discounted cash flow (DCF) models place EE’s fair value at $54.11, significantly higher than its current trading price of around $30. This suggests that the market may be undervaluing the company’s future cash flows.[1]
How does EE’s profitability compare within the industry?
EE has a high Gross Profit Margin of 83% and an Operating Profit Margin of 21.9%, which are strong indicators. However, its Net Profit Margin is extremely low at 0.01%, suggesting high expenses or other factors impacting net income.[4]
What factors influence EE’s stock performance?
EE’s performance is closely tied to global LNG and natural gas prices. Geopolitical factors, supply-demand dynamics, and policy changes favoring U.S. energy exports significantly influence its revenue and stock performance.[5]
Does EE have strong liquidity?
Yes, EE exhibits strong liquidity with a Current Ratio of 3.49 and a Quick Ratio of 3.32, indicating the company is well-positioned to cover its short-term liabilities.[3]
What is EE’s position on dividend payouts?
EE offers a modest dividend yield of 0.64%. However, a high payout ratio of 58.9% could constrain future dividend increases, as a significant portion of earnings is already being distributed to shareholders.[2]
References
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