LIBERTY ENERGY INC (LBRT) Stock Fundamental Analysis
NYSE:LBRT - New York Stock Exchange, Inc. - US53115L1044 - Common Stock - Currency: USD
Overall LBRT gets a fundamental rating of 5 out of 10. We evaluated LBRT against 63 industry peers in the Energy Equipment & Services industry. While LBRT has a great profitability rating, there are some minor concerns on its financial health. LBRT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LBRT had positive earnings in the past year.
LBRT had a positive operating cash flow in the past year.
In multiple years LBRT reported negative net income over the last 5 years.
Each year in the past 5 years LBRT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LBRT (7.58%) is better than 69.84% of its industry peers.
Looking at the Return On Equity, with a value of 12.88%, LBRT is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
LBRT's Return On Invested Capital of 8.53% is fine compared to the rest of the industry. LBRT outperforms 63.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LBRT is significantly above the industry average of 8.44%.
The 3 year average ROIC (18.48%) for LBRT is well above the current ROIC(8.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 12.88% | ||
| ROIC | 8.53% |
ROA(3y)14.48%
ROA(5y)5.71%
ROE(3y)24.3%
ROE(5y)9.62%
ROIC(3y)18.48%
ROIC(5y)N/A
1.3 Margins
LBRT's Profit Margin of 6.03% is in line compared to the rest of the industry. LBRT outperforms 53.97% of its industry peers.
In the last couple of years the Profit Margin of LBRT has grown nicely.
LBRT has a Operating Margin of 6.92%. This is in the lower half of the industry: LBRT underperforms 65.08% of its industry peers.
LBRT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 24.65%, LBRT perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
In the last couple of years the Gross Margin of LBRT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.92% | ||
| PM (TTM) | 6.03% | ||
| GM | 24.65% |
OM growth 3YN/A
OM growth 5Y10.37%
PM growth 3YN/A
PM growth 5Y30.17%
GM growth 3Y42.43%
GM growth 5Y6.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LBRT is creating value.
Compared to 1 year ago, LBRT has less shares outstanding
Compared to 5 years ago, LBRT has more shares outstanding
LBRT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.90 indicates that LBRT is not a great score, but indicates only limited risk for bankruptcy at the moment.
LBRT's Altman-Z score of 2.90 is fine compared to the rest of the industry. LBRT outperforms 76.19% of its industry peers.
The Debt to FCF ratio of LBRT is 2.21, which is a good value as it means it would take LBRT, 2.21 years of fcf income to pay off all of its debts.
LBRT has a better Debt to FCF ratio (2.21) than 74.60% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that LBRT is not too dependend on debt financing.
The Debt to Equity ratio of LBRT (0.21) is better than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.9
WACC9.48%
2.3 Liquidity
LBRT has a Current Ratio of 1.20. This is a normal value and indicates that LBRT is financially healthy and should not expect problems in meeting its short term obligations.
LBRT's Current ratio of 1.20 is on the low side compared to the rest of the industry. LBRT is outperformed by 85.71% of its industry peers.
A Quick Ratio of 0.91 indicates that LBRT may have some problems paying its short term obligations.
With a Quick ratio value of 0.91, LBRT is not doing good in the industry: 82.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for LBRT have decreased strongly by -44.81% in the last year.
Measured over the past years, LBRT shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.91% on average per year.
LBRT shows a decrease in Revenue. In the last year, the revenue decreased by -7.45%.
Measured over the past years, LBRT shows a quite strong growth in Revenue. The Revenue has been growing by 16.74% on average per year.
EPS 1Y (TTM)-44.81%
EPS 3YN/A
EPS 5Y23.91%
EPS Q2Q%-74.47%
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y20.43%
Revenue growth 5Y16.74%
Sales Q2Q%-8.91%
3.2 Future
LBRT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.09% yearly.
LBRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.51% yearly.
EPS Next Y-75.73%
EPS Next 2Y-48.29%
EPS Next 3Y-13.27%
EPS Next 5Y-10.09%
Revenue Next Year-10.15%
Revenue Next 2Y-3.88%
Revenue Next 3Y-0.05%
Revenue Next 5Y1.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.37 indicates a reasonable valuation of LBRT.
Based on the Price/Earnings ratio, LBRT is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
LBRT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 25.35, which means the current valuation is very expensive for LBRT.
Based on the Price/Forward Earnings ratio, LBRT is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of LBRT to the average of the S&P500 Index (21.76), we can say LBRT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 25.35 |
4.2 Price Multiples
95.24% of the companies in the same industry are more expensive than LBRT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LBRT is valued a bit cheaper than 69.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.09 | ||
| EV/EBITDA | 3.11 |
4.3 Compensation for Growth
LBRT has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LBRT's earnings are expected to decrease with -13.27% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-48.29%
EPS Next 3Y-13.27%
5. Dividend
5.1 Amount
LBRT has a Yearly Dividend Yield of 2.65%.
LBRT's Dividend Yield is a higher than the industry average which is at 3.54.
LBRT's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
The dividend of LBRT is nicely growing with an annual growth rate of 17.58%!
LBRT has been paying a dividend for over 5 years, so it has already some track record.
The dividend of LBRT decreased in the last 3 years.
Dividend Growth(5Y)17.58%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
LBRT pays out 19.61% of its income as dividend. This is a sustainable payout ratio.
DP19.61%
EPS Next 2Y-48.29%
EPS Next 3Y-13.27%
12.47
-0.06 (-0.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.57%
Inst Owner Change0%
Ins Owners2%
Ins Owner Change0.7%
Market Cap2.02B
Analysts75.79
Price Target16.62 (33.28%)
Short Float %4.66%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend0.29
Dividend Growth(5Y)17.58%
DP19.61%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)172.06%
Min EPS beat(2)169.82%
Max EPS beat(2)174.3%
EPS beat(4)3
Avg EPS beat(4)80.06%
Min EPS beat(4)-24.52%
Max EPS beat(4)174.3%
EPS beat(8)4
Avg EPS beat(8)37.48%
EPS beat(12)8
Avg EPS beat(12)47.67%
EPS beat(16)9
Avg EPS beat(16)12.33%
Revenue beat(2)1
Avg Revenue beat(2)-2.92%
Min Revenue beat(2)-6.21%
Max Revenue beat(2)0.37%
Revenue beat(4)1
Avg Revenue beat(4)-2.74%
Min Revenue beat(4)-6.21%
Max Revenue beat(4)0.37%
Revenue beat(8)2
Avg Revenue beat(8)-2.24%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)7
Avg Revenue beat(16)0.07%
PT rev (1m)-2%
PT rev (3m)-22.27%
EPS NQ rev (1m)-7.56%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)-5.71%
EPS NY rev (3m)-20.6%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 25.35 | ||
| P/S | 0.48 | ||
| P/FCF | 9.09 | ||
| P/OCF | 2.34 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 3.11 |
EPS(TTM)1.49
EY11.95%
EPS(NY)0.49
Fwd EY3.94%
FCF(TTM)1.37
FCFY11%
OCF(TTM)5.32
OCFY42.69%
SpS26.05
BVpS12.19
TBVpS12.19
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 12.88% | ||
| ROCE | 11.07% | ||
| ROIC | 8.53% | ||
| ROICexc | 8.61% | ||
| ROICexgc | 8.61% | ||
| OM | 6.92% | ||
| PM (TTM) | 6.03% | ||
| GM | 24.65% | ||
| FCFM | 5.26% |
ROA(3y)14.48%
ROA(5y)5.71%
ROE(3y)24.3%
ROE(5y)9.62%
ROIC(3y)18.48%
ROIC(5y)N/A
ROICexc(3y)18.79%
ROICexc(5y)N/A
ROICexgc(3y)18.84%
ROICexgc(5y)N/A
ROCE(3y)23.99%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.23%
ROICexc growth 3YN/A
ROICexc growth 5Y4.23%
OM growth 3YN/A
OM growth 5Y10.37%
PM growth 3YN/A
PM growth 5Y30.17%
GM growth 3Y42.43%
GM growth 5Y6.73%
F-Score4
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 125.58% | ||
| Cap/Sales | 15.17% | ||
| Interest Coverage | 8.43 | ||
| Cash Conversion | 107.52% | ||
| Profit Quality | 87.37% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.9 |
F-Score4
WACC9.48%
ROIC/WACC0.9
Cap/Depr(3y)137.31%
Cap/Depr(5y)109.02%
Cap/Sales(3y)12.9%
Cap/Sales(5y)11.49%
Profit Quality(3y)50%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.81%
EPS 3YN/A
EPS 5Y23.91%
EPS Q2Q%-74.47%
EPS Next Y-75.73%
EPS Next 2Y-48.29%
EPS Next 3Y-13.27%
EPS Next 5Y-10.09%
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y20.43%
Revenue growth 5Y16.74%
Sales Q2Q%-8.91%
Revenue Next Year-10.15%
Revenue Next 2Y-3.88%
Revenue Next 3Y-0.05%
Revenue Next 5Y1.51%
EBIT growth 1Y-54.61%
EBIT growth 3YN/A
EBIT growth 5Y28.84%
EBIT Next Year65.1%
EBIT Next 3Y27.02%
EBIT Next 5Y15.2%
FCF growth 1Y-1.59%
FCF growth 3YN/A
FCF growth 5Y22.03%
OCF growth 1Y19.79%
OCF growth 3Y82.92%
OCF growth 5Y26.01%