Fundamental analysis: Cheniere Energy Partners, L.P. (CQP)

Awarener score: 8.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Poor) and growth (Excellent), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business has been growing at an excellent pace. It's been great when measured against peer companies.
Cheniere Energy Partners, L.P. business varies, ups and downs are rather normal. Risk is sufficient. It looks somewhat worse than rivals.

Margins score: 8.5

CQP profit margins -on goods and services sold- are usually sufficient. They stand slightly better than rival companies.
Business profit on sales tends to be huge. It's encouraging in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain rather normal in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still well ranked against similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain more than average in relation to rivals.
Total net profit tends to be excellent when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 8.3

Cheniere Energy Partners, L.P. profit -on goods and services sold- has been growing at a very good pace. It's been a slight improvement compared to competitors.
In recent years, earnings -on operations- have been growing at a good step, which has been somewhat better than comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares similar to peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be rather normal in relation to similar stocks.
In past years, profits -before income taxes- grew at an excellent speed. It was better than most rivals.
In the previous years, growth trend on total net profit has been excellent, and great when measured against peer companies.
Earnings per share have grown at an excellent rhythm in past years. It's been excellent in relation to industry peers.

Miscellaneous score: 8.0

CQP managed to pay little to no income taxes on profits made in the past years. It's been mediocre against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.5

Cheniere Energy Partners, L.P. usually gets huge returns on the resources it controls. It proves more than average in relation to peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 7.5

CQP usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands more than average in relation to rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is similar to industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came better than most competitors.
Has significantly increased dividend payments in the past years. Business prospects probably have improved. The company has behaved a slight improvement compared to similar firms.
The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks mediocre against comparable companies.
The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.9

Cheniere Energy Partners, L.P. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be a slight improvement compared to similar firms.
Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains worse than most rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks encouraging in relation to rivals.
For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's rather normal in relation to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is well ranked against similar enterprises.
Usually, sales are mostly on cash. It still ranks encouraging in relation to peers.
Normally has approximately only a couple of weekly sales worth in inventory. It comes up as a slight improvement compared to competitors.
On average, it takes close to one month from the purchase to charging customers. It happens to be slightly better than peers.
On average pays suppliers during the first couple of weeks from the purchase. It ranks almost average when measured against industry peers.
The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's rather normal in relation to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands well ranked against rival firms.
Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks a slight improvement compared to similar firms.
Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 6.7

Cheniere Energy Partners, L.P. looks cheap in relation to profits and financial position. It happens to be more than average in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still almost average when measured against industry firms.
In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
The company is indebted, it should focus on loan repayment. It looks slightly worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still in good shape compared to peer companies.

Total score: 7.6

Company at a glance: Cheniere Energy Partners, L.P. (CQP)

Sector, industry: Energy, Oil & Gas Midstream

Market Cap: 21.74 billions

Revenues TTM: 16.80 billions

Cheniere Energy Partners, L.P., through its subsidiaries, owns and operates natural gas liquefaction and export facility at the Sabine Pass liquefied natural gas (LNG) terminal located in Cameron Parish, Louisiana. The company's regasification facilities include five LNG storage tanks with an aggregate capacity of approximately 17 billion cubic feet equivalent; two marine berths that accommodate vessels with capacity of up to 266,000 cubic meters; and vaporizers with regasification capacity of approximately 4 billion cubic feet per day. It also owns a 94-mile pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. Cheniere Energy Partners GP, LLC serves as the general partner of the company. The company was founded in 2003 and is headquartered in Houston, Texas.