LNG

Cheniere is a toll-road on US LNG exports, and FY2025 shows the model working: revenue $19.5B (+26.3%), operating income $9.11B at a 46.8% operating margin, net income $5.33B (+63.9%) and diluted EPS $24.13 (+69.9%). At $227.03 that is a 9.4x P/E and 2.5x sales — a low multiple for a business throwing off $5.54B of operating cash flow with a 27.4% net margin. The MD&A frames the foundation correctly: long-term SPA/IPM counterparty contracts (e.g. the August 2025 JERA deal to 2050 and the Canadian Natural Resources IPM) provide 'significant, stable, long-term cash flows,' which is what justifies paying for the equity through a commodity cycle rather than on any single year's print.

The balance sheet is leveraged but managed, not stressed. Liabilities/equity is 4.40x and long-term debt is $22.5B, but that debt is flat YoY (-0.2%), carries a weighted-average 4.65% coupon, every issuer was in covenant compliance at year-end, and the maturity wall is back-loaded ($0.3B due 2026, the bulk in 2027-2030 and thereafter). Equity grew 38.9% and retained earnings 65.8% as the company self-funds. The real giveaway is capital allocation: $2.72B of buybacks (+20.4%) and $451M of dividends (+9.5%) in FY2025, a 6.0% reduction in shares outstanding, and a February 2026 board move lifting the repurchase authorization to ~$10B through 2030. Shrinking the count into double-digit EPS growth is a powerful per-share compounding engine, and it partly explains (but does not invalidate) the 67.3% ROE.