LNG
Cheniere Energy, Inc.
Energy · Oil & Gas Midstream · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The growth factor earned a perfect sub-score, driven by 26.3% revenue growth, 63.9% net income growth, and 69.9% EPS expansion in FY2025, anchoring the composite score strongly.
- Profitability was also near-perfect, with a 46.8% operating margin, 27.4% net margin, and 11.1% return on assets all reflecting highly efficient operations that the model rewarded heavily.
- The dividend factor contributed meaningfully, reflecting consistent per-share growth from FY2021 through FY2024 and a conservative 8.5% payout ratio, but momentum was penalized sharply due to the 2026Q1 earnings collapse, and the theme factor contributed zero points, collectively capping the total score at 62.7/100.
Why Not Higher
- The momentum factor was severely penalized because net income and operating income both turned sharply negative in 2026Q1—falling to -$3.50 billion and -$3.49 billion respectively—offsetting the positive revenue trajectory and dragging down the composite score.
- The Energy Security theme assignment produced zero score contribution under the model's current methodology, and financial health scored only 10.0/20, with a debt-to-equity ratio of 1.74 reflecting elevated leverage that limited upside in that dimension.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $15,414,000,000 to FY2025's $19,464,000,000, a gain of +26.3%. Net income rose +63.9% over the same period, from $3,252,000,000 to $5,330,000,000, while diluted EPS expanded +69.9% from $14.2 in FY2024 to $24.13 in FY2025.
The model rewarded the combination of accelerating top-line growth, sharply expanding bottom-line profitability, and strong per-share earnings improvement across all three key growth dimensions, producing a perfect sub-score.
In FY2025, Cheniere posted an operating margin of 46.8%, a net margin of 27.4%, and a return on assets of 11.1%, reflecting broad-based profitability across the income statement and balance sheet.
The model rewarded the combination of a near-50% operating margin, a substantial net margin, and a double-digit return on assets, all of which signal highly efficient conversion of revenue into profit and productive deployment of the asset base.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue showed a generally rising trend from $4,507,000,000 in 2025Q2 through $6,587,000,000 in 2026Q1, but net income and operating income swung sharply negative in 2026Q1, with net income falling to -$3,502,000,000 and operating income to -$3,488,000,000 after positive readings in the prior three quarters.
The model penalized the abrupt reversal in earnings momentum in 2026Q1, which offset the positive revenue trajectory and produced a below-average sub-score despite top-line acceleration.
Dividends per share rose consistently from $0.33 in FY2021 to $1.385 in FY2022, $1.62 in FY2023, and $1.805 in FY2024, demonstrating a multi-year growth trend. The dividend payout ratio in FY2025 stood at 8.5%, indicating that distributions remain well covered by earnings.
The model rewarded the sustained multi-year dividend growth trajectory alongside a conservative payout ratio, which together signal both commitment to returning capital and ample room for continued dividend increases.
Cheniere Energy is assigned to the Energy Security macro theme.
Although the company carries the Energy Security theme assignment, this designation did not translate into score under the model's current methodology, suggesting that the scoring criteria for this theme were not met at this time.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Cheniere Energy delivered exceptional financial performance in FY2025, with revenue rising 26.3% to $19.46 billion and net income surging 63.9% to $5.33 billion, accompanied by a near-50% operating margin and 27.4% net margin that reflect highly efficient operations. Diluted EPS expanded 69.9% to $24.13, and the company maintained a conservative dividend payout ratio of 8.5% despite multi-year dividend per share growth, signaling strong capital return capacity. However, a sharp reversal in earnings momentum in 2026Q1—with net income swinging to -$3.50 billion and operating income to -$3.49 billion despite continued revenue growth—introduces meaningful near-term uncertainty. The overall profile earns a High risk rating, reflecting the tension between outstanding historical profitability and abrupt recent earnings deterioration.
Plain English
Cheniere made a lot more money in 2025—revenues and profits both jumped sharply, and it kept paying growing dividends—but in early 2026 its profits suddenly turned deeply negative in a single quarter, which is a big red flag that keeps the stock in the 'watch carefully' category rather than a clear winner.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 26.3% year-over-year to $19.46 billion in FY2025, while net income surged 63.9% to $5.33 billion and diluted EPS jumped 69.9% to $24.13, demonstrating powerful top-line and bottom-line momentum across all key growth metrics.
- FY2025 operating margin of 46.8% and net margin of 27.4%, combined with an 11.1% return on assets, indicate that Cheniere converts nearly half of every revenue dollar into operating profit and deploys its asset base with high efficiency.
- Dividends per share have grown consistently from $0.33 in FY2021 to $1.805 in FY2024, and the FY2025 payout ratio of just 8.5% leaves substantial room for continued dividend increases, signaling financial discipline and shareholder-friendly capital allocation.
Bear Case
- In 2026Q1, net income collapsed to -$3.50 billion and operating income fell to -$3.49 billion despite quarterly revenue reaching a recent high of $6.59 billion, representing a severe and abrupt earnings reversal that undermines confidence in near-term profitability.
- The sharp swing from strongly positive to deeply negative earnings in a single quarter creates significant momentum risk, as the model penalized this reversal and it raises questions about the sustainability of the otherwise impressive FY2025 results.
- Financial health carries meaningful leverage, with a debt-to-equity ratio of 1.74 against a total asset base of $47.88 billion, which could amplify downside risk if earnings volatility persists.
What Could Change the Picture
Bullish Triggers
- If the 2026Q1 earnings collapse proves to be a one-time non-cash or mark-to-market item and subsequent quarters return to the strong profitability seen in FY2025, the bull case for sustained high margins and earnings growth would be substantially reinforced.
- Continued multi-year dividend per share growth beyond the FY2024 level of $1.805, supported by the very low 8.5% payout ratio, would further validate management's confidence in durable free cash flow generation.
Bearish Triggers
- If the 2026Q1 operating loss of -$3.49 billion reflects structural or recurring headwinds rather than a one-time item, the FY2025 operating margin of 46.8% may prove unsustainable and the growth narrative would weaken materially.
- A deterioration in the dividend growth trend—which has risen steadily from $0.33 in FY2021 to $1.805 in FY2024—would signal reduced management confidence in future cash flows and could be a leading indicator of broader financial stress.
Risk Profile
High RiskCheniere carries a High risk rating primarily because of the dramatic 2026Q1 earnings reversal, where net income fell to -$3.50 billion and operating income to -$3.49 billion in a single quarter despite rising revenues, signaling potential volatility in earnings quality. This is compounded by a debt-to-equity ratio of 1.74 against $47.88 billion in total assets, meaning the company operates with meaningful financial leverage that could amplify the impact of any sustained earnings weakness.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.