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Tellurian Inc. is a company that's been making waves in the energy industry. Founded in 2016, Tellurian is led by President and CEO Meg Gentle, who has a wealth of experience in the energy sector.
Tellurian's flagship project is the Driftwood LNG project, a liquefied natural gas (LNG) facility that's expected to be one of the largest in the world. Located in Louisiana, the project will have the capacity to produce 27.6 million tons of LNG per year.
Tellurian has a strong focus on sustainability, aiming to produce LNG that meets the lowest possible carbon intensity levels. This is reflected in its planned use of carbon capture and storage technology at the Driftwood LNG project.
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Tellurian Stock Analysis
B. Riley, a reputable analyst, has been following Tellurian Inc. closely, and their recommendations are worth noting. They downgraded Tellurian to Neutral from Buy on July 24, 2023, after the announced sale to Woodside Energy, adjusting their price target to $1 from $2.50.
B. Riley has also been adjusting their price target for Tellurian over the months. On May 31, 2024, they lowered the price target to $2.50 from $3, while maintaining a Buy rating. This suggests that they still have confidence in the company's growth potential.
The sale to Woodside Energy has been a significant event for Tellurian, with some analysts questioning its valuation. Income Growth Advisors LLC believes that Tellurian shares have upside potential of $1.2/share to $3/share, citing the company's Driftwood LNG project valued at $4 billion.
Here's a summary of B. Riley's price target adjustments for Tellurian:
Morgan Stanley also weighed in on Tellurian, adjusting their price target to $1 from $2.50 on February 13, 2024, while keeping an Equalweight rating. This suggests that they are taking a more cautious approach to the company's valuation.
Stock Valuation Methods
Stock valuation methods can be a complex topic, but at its core, it's about determining a stock's value beyond its price. A stock's value is tied to more than just its share price, and three key data points can help you determine its value: earnings per share (EPS), price-to-earnings (P/E) ratio, and price/earnings-to-growth (PEG) ratio.
Earnings per share (EPS) measures a stock's value based on the company's net profit and the shares outstanding. For example, Smith Organic and Jones Organic both make a million dollars in profit every year, but Jones Organic has only 1,000 shares outstanding, making each share worth $1,000. That's 100 times more valuable than Smith Organic's shares.
The price-to-earnings (P/E) ratio provides an indicator of how much investors will pay for each unit of earnings. A lower P/E ratio typically makes a stock look more attractive. Companies want to have lower P/E ratios, as it indicates investors are willing to pay less for each dollar of profitability.
The price/earnings-to-growth (PEG) ratio can help you decide if a stock is undervalued or overvalued. To find a stock's PEG, divide the P/E ratio by the growth rate. If the PEG ratio is more than 1, the stock is overvalued; if it's 1 or less, it's at par or undervalued.
Here's a comparison of Smith Organic and Jones Organic using PEG ratios:
As you can see, Jones Organic has a lower PEG ratio, making it a more valuable buy.
Expert Insights
Analysts have been actively following Tellurian Inc.'s stock, with B. Riley being one of the most active analysts. B. Riley Downgraded Tellurian to Neutral From Buy on Heels of Announced Sale to Woodside Energy, Adjusting their Price Target to $1 From $2.50.
B. Riley has a history of adjusting their price targets for Tellurian, with a recent adjustment to $2.50 From $3, while maintaining their Buy Rating. This shows that they are closely monitoring the company's performance.
Morgan Stanley also weighed in on Tellurian, adjusting their Price Target to $1 From $2.50, while keeping their Equalweight Rating. This suggests that they have a cautious outlook on the company's future.
One analyst is forecasting a 12-month stock price of $1.0 for TELL stock, with a rating of "Hold".
Industry and Company
In the stock market, companies are the backbone of stock quotes. Many large corporations, such as Apple and Google, are publicly traded and have a significant impact on the stock market.
These companies have a direct influence on stock prices, making them a crucial aspect of the stock quote tell. The stock market is highly competitive, with many companies vying for attention and investment.
The stock market is a place where companies can raise capital and grow their businesses, making it an essential platform for companies to thrive.
Financial Performance
Tellurian's financial performance took a significant hit in 2023, with revenue plummeting to $166.13 million, a staggering decrease of 57.61% from the previous year.
The company's revenue drop was substantial, falling from $391.93 million in 2022 to $166.13 million in 2023.
Losses also mounted, reaching a whopping -$166.18 million, a 233.6% increase from the previous year's losses.
Oil & Gas Exploration and Production
Oil & Gas Exploration and Production companies have been experiencing fluctuations in their stock prices. CONOCOPHILLIPS saw a -1.28% change in the last 5 days.
The oil and gas industry is known for its volatility, and recent trends suggest that this is true. CNOOC LIMITED's stock price has dropped by -1.28% in the last 5 days, just like CONOCOPHILLIPS.
EOG RESOURCES, INC. has also seen a -1.30% change in the last 5 days, indicating that the industry as a whole is experiencing some challenges.
The 1-year change for these companies is also noteworthy, with CNOOC LIMITED experiencing a +26.47% change, a stark contrast to EOG RESOURCES, INC.'s +12.73% change.
Here's a list of the companies mentioned, along with their 5-day and 1-year changes:
The average 5-day change for these companies is -0.34%, indicating a slight decline in the last week.
Key Takeaways
A stock's price and value are not the same things, and value is more complex to find than price. This is a crucial distinction to understand when evaluating a stock.
Earnings per share (EPS) is one of the key metrics that can help you find a stock's value. It's calculated by dividing the company's total earnings by the number of outstanding shares.
The price-to-earnings (P/E) ratio is another important metric that can help you separate a stock's price from its value. A high P/E ratio may indicate that a stock is overvalued.
The price/earnings-to-growth (PEG) ratio is a more comprehensive metric that takes into account a company's growth prospects in addition to its earnings. It can help you identify undervalued stocks with strong growth potential.
Here are some key ratios to keep in mind:
Separating a stock's price from its value is an essential part of knowing what a share is worth. By understanding these key metrics, you can make more informed investment decisions.
Frequently Asked Questions
What is the stock symbol for TELL?
The stock symbol for Tellurian is TELL (NYSEMKT: TELL).
Sources
- https://www.marketscreener.com/quote/stock/TELLURIAN-INC-34054218/
- https://stockanalysis.com/stocks/tell/
- https://stockanalysis.com/stocks/tell/history/
- https://www.marketscreener.com/quote/stock/TELLURIAN-INC-34054218/quotes/
- https://www.thebalancemoney.com/what-does-stocks-are-cheap-or-expensive-mean-3140707
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