NYSE:LBRT is an undervalued gem with solid fundamentals.

Last update: Feb 1, 2024

Uncover the hidden value in LIBERTY ENERGY INC (NYSE:LBRT) as our stock screening tool recommends it as an undervalued choice. NYSE:LBRT maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Looking at the Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:LBRT boasts a 7 out of 10:

The Price/Earnings ratio is 5.71, which indicates a rather cheap valuation of LBRT.
95.38% of the companies in the same industry are more expensive than LBRT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LBRT to the average of the S&P500 Index (25.93), we can say LBRT is valued rather cheaply.
The Price/Forward Earnings ratio is 6.59, which indicates a rather cheap valuation of LBRT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LBRT indicates a rather cheap valuation: LBRT is cheaper than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.16, LBRT is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, LBRT is valued cheaper than 90.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LBRT is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
LBRT has a very decent profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:LBRT, the assigned 7 is a significant indicator of profitability:

With an excellent Return On Assets value of 19.97%, LBRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LBRT's Return On Equity of 34.49% is amongst the best of the industry. LBRT outperforms 93.85% of its industry peers.
With an excellent Return On Invested Capital value of 27.35%, LBRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LBRT's Profit Margin of 12.59% is amongst the best of the industry. LBRT outperforms 86.15% of its industry peers.
LBRT's Profit Margin has improved in the last couple of years.
The Operating Margin of LBRT (16.92%) is better than 81.54% of its industry peers.
In the last couple of years the Operating Margin of LBRT has grown nicely.
LBRT's Gross Margin has improved in the last couple of years.

Health Insights: NYSE:LBRT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LBRT has received a 7 out of 10:

LBRT has an Altman-Z score of 4.50. This indicates that LBRT is financially healthy and has little risk of bankruptcy at the moment.
LBRT has a better Altman-Z score (4.50) than 89.23% of its industry peers.
LBRT has a debt to FCF ratio of 0.95. This is a very positive value and a sign of high solvency as it would only need 0.95 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.95, LBRT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that LBRT is not too dependend on debt financing.
LBRT has a Debt to Equity ratio of 0.18. This is in the better half of the industry: LBRT outperforms 66.15% of its industry peers.

A Closer Look at Growth for NYSE:LBRT

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:LBRT has received a 5 out of 10:

The Earnings Per Share has grown by an impressive 222.12% over the past year.
The Earnings Per Share has been growing by 11.33% on average over the past years. This is quite good.
The Revenue has grown by 35.80% in the past year. This is a very strong growth!
The Revenue has been growing by 17.11% on average over the past years. This is quite good.

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Check the latest full fundamental report of LBRT for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.