Does LIBERTY ENERGY INC (NYSE:LBRT) match Peter Lynch’s “Invest in What You Know” philosophy?

Known for his philosophy of investing in what you know, Peter Lynch looked for companies with consistent earnings growth, low debt, and a competitive edge. Does LIBERTY ENERGY INC (NYSE:LBRT) meet these key criteria? Let’s find out.

Applying Peter Lynch’s stock selection rules to LIBERTY ENERGY INC (NYSE:LBRT)

• In terms of Return on Equity(ROE), LBRT is performing well, achieving a 15.97% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• At a Debt/Equity ratio of 0.2, LBRT seems well-positioned to sustain growth while keeping debt in check.
• LBRT has experienced 23.91 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• LBRT boasts a PEG ratio of 0.36, indicating a reasonable valuation relative to its earnings growth.
• With a Current Ratio of 1.27, LBRT shows a stable financial footing with enough assets to cover short-term debts.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

LBRT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Energy Equipment & Services industry. LBRT scores excellent on profitability, but there are some minor concerns on its financial health. LBRT is valued correctly, but it does not seem to be growing.

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

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Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.