FMP
Sep 8, 2025 6:00 PM - Stuart Mooney
Image credit: Google Images
New Fortress Energy (NASDAQ:NFE) is a U.S.-based company specializing in liquefied natural gas (LNG). The company focuses on providing clean and affordable energy solutions. However, NFE faces competition from other LNG providers, which adds pressure to its financial performance.
On September 5, 2025, NFE reported an earnings per share (EPS) of -$2.02, significantly missing the estimated EPS of -$0.41. This larger-than-expected loss is partly due to reduced contributions following the sale of certain assets, as highlighted by The Motley Fool. The company's revenue also fell short, coming in at $301.7 million compared to the estimated $669.2 million.
The disappointing financial results have led to a sharp decline in NFE's stock price, which plummeted by 37.6% as of midday trading on Monday. This decline reflects investor concerns about the company's financial health and future prospects. NFE's negative price-to-earnings (P/E) ratio of approximately -0.41 further underscores the company's current challenges.
NFE's financial metrics reveal additional concerns. The price-to-sales ratio is about 0.20, indicating that the stock is valued at 20 cents for every dollar of sales. The enterprise value to sales ratio is 4.59, and the enterprise value to operating cash flow ratio is notably high at 233.68, suggesting a significant premium on the company's cash flow.
The company's financial health is further strained by a high debt-to-equity ratio of 7.65, indicating heavy leverage. Additionally, the current ratio of 0.67 suggests potential liquidity issues, as NFE may struggle to cover its short-term liabilities with its short-term assets. These financial challenges contribute to the negative earnings yield of -2.41%, highlighting the company's ongoing difficulties.
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