Operating Margin

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Price: 26.57 USD 1.84% Market Closed

Market Cap: $1.4B

5.5%

No historical data

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

5.5%

Operating Income

$192.5m

Revenue

$355.8m

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

5.5%

Operating Income

$192.5m

Revenue

$355.8m

Peer Comparison

Country	Company	Market Cap	Operating Margin
BM	FLEX LNG Ltd OSE:FLNG	13.7B NOK	Loading...
CA	Enbridge Inc TSX:ENB	142.9B CAD	Loading...
US	Williams Companies Inc NYSE:WMB	81.2B USD	Loading...
US	Enterprise Products Partners LP NYSE:EPD	72.3B USD	Loading...
US	Kinder Morgan Inc NYSE:KMI	66.5B USD	Loading...
US	Energy Transfer LP NYSE:ET	62.2B USD	Loading...
CA	TC Energy Corp TSX:TRP	82.2B CAD	Loading...
US	MPLX LP NYSE:MPLX	56.7B USD	Loading...
US	ONEOK Inc NYSE:OKE	49.5B USD	Loading...
US	Cheniere Energy Inc NYSE:LNG	45.2B USD	Loading...
US	Targa Resources Corp NYSE:TRGP	42.8B USD	Loading...

Market Distribution

Min	-73 643.6%
30th Percentile	2.6%
Median	6.8%
70th Percentile	19.1%
Max	68.5%

Other Profitability Ratios

FLEX LNG Ltd
Glance View

Economic Moat

None

Market Cap

1.4B USD

Industry

Energy

In the world of liquefied natural gas, FLEX LNG Ltd. has carved out a significant position by banking on the growing global demand for cleaner energy. Originating from the bustling shipping hubs of Norway, FLEX LNG is a shipping company that specializes in the transportation of LNG across the world's oceans. Its business model centers on leasing its fleet of modern, technologically advanced LNG carriers to major energy companies. These carriers are not just vessels; they are pivotal assets designed to ensure efficient and safe transport of LNG from liquefaction plants to regasification terminals worldwide. This specialization in LNG transportation positions FLEX LNG within a niche that benefits from both technological expertise and the increasing substitution of coal with LNG amidst the global energy transition. The company's revenue flow is primarily derived from charter hire, leveraging either long-term fixed contracts or spot charters, depending on prevailing market conditions. This approach provides a balance between stable income through lengthy contracts and the opportunity for maximized returns when market demand spikes. With its fleet recently expanded and modernized, FLEX LNG's strategic focus on low boil-off rates and fuel-efficient ships makes it an attractive and reliable partner for energy stakeholders seeking to mitigate transport costs while adhering to environmental standards. The company stands as a testament to the critical role logistics play in the broader energy sector, ensuring that the constantly shifting tides of the global energy market are met with agility and precision.

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FLNG Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

FLEX LNG Ltd
NYSE:FLNG

Peer Comparison

Market Distribution

Other Profitability Ratios

FLEX LNG Ltd
Glance View

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FLEX LNG Ltd NYSE:FLNG