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 62 industry peers in the Energy Equipment & Services industry. LBRT has an excellent profitability rating, but there are some minor concerns on its financial health. LBRT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year LBRT was profitable.
LBRT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LBRT reported negative net income in multiple years.
Each year in the past 5 years LBRT had a positive operating cash flow.
1.2 Ratios
LBRT has a better Return On Assets (9.59%) than 80.65% of its industry peers.
LBRT has a Return On Equity of 15.97%. This is in the better half of the industry: LBRT outperforms 74.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.25%, LBRT belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
LBRT had an Average Return On Invested Capital over the past 3 years of 18.48%. This is significantly above the industry average of 8.16%.
The last Return On Invested Capital (11.25%) for LBRT is well below the 3 year average (18.48%), which needs to be investigated, but indicates that LBRT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 15.97% | ||
| ROIC | 11.25% |
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 7.32% is in line compared to the rest of the industry. LBRT outperforms 59.68% of its industry peers.
In the last couple of years the Profit Margin of LBRT has grown nicely.
LBRT has a Operating Margin of 8.90%. This is comparable to the rest of the industry: LBRT outperforms 41.94% of its industry peers.
LBRT's Operating Margin has improved in the last couple of years.
LBRT has a Gross Margin (25.83%) which is in line with its industry peers.
LBRT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.9% | ||
| PM (TTM) | 7.32% | ||
| GM | 25.83% |
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.
The number of shares outstanding for LBRT has been reduced compared to 1 year ago.
Compared to 5 years ago, LBRT has more shares outstanding
Compared to 1 year ago, LBRT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.09 indicates that LBRT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.09, LBRT is doing good in the industry, outperforming 75.81% of the companies in the same industry.
LBRT has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as LBRT would need 2.58 years to pay back of all of its debts.
LBRT's Debt to FCF ratio of 2.58 is fine compared to the rest of the industry. LBRT outperforms 67.74% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that LBRT is not too dependend on debt financing.
LBRT's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. LBRT outperforms 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.19
WACC9.43%
2.3 Liquidity
LBRT has a Current Ratio of 1.27. This is a normal value and indicates that LBRT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of LBRT (1.27) is worse than 83.87% of its industry peers.
A Quick Ratio of 0.97 indicates that LBRT may have some problems paying its short term obligations.
LBRT has a worse Quick ratio (0.97) than 82.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
LBRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.78%.
The Earnings Per Share has been growing by 23.91% on average over the past years. This is a very strong growth
LBRT shows a decrease in Revenue. In the last year, the revenue decreased by -9.11%.
LBRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.74% yearly.
EPS 1Y (TTM)-47.78%
EPS 3YN/A
EPS 5Y23.91%
EPS Q2Q%-91.49%
Revenue 1Y (TTM)-9.11%
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 -16.78% yearly.
LBRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.95% yearly.
EPS Next Y-69.43%
EPS Next 2Y-23.31%
EPS Next 3Y-8.25%
EPS Next 5Y-16.78%
Revenue Next Year-8.31%
Revenue Next 2Y-0.26%
Revenue Next 3Y2.37%
Revenue Next 5Y0.95%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 8.57, the valuation of LBRT can be described as reasonable.
LBRT's Price/Earnings ratio is rather cheap when compared to the industry. LBRT is cheaper than 80.65% of the companies in the same industry.
LBRT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
LBRT is valuated reasonably with a Price/Forward Earnings ratio of 11.16.
LBRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LBRT is cheaper than 66.13% of the companies in the same industry.
LBRT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
LBRT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LBRT is cheaper than 95.16% of the companies in the same industry.
LBRT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11 | ||
| EV/EBITDA | 2.7 |
4.3 Compensation for Growth
The decent profitability rating of LBRT may justify a higher PE ratio.
A cheap valuation may be justified as LBRT's earnings are expected to decrease with -8.25% in the coming years.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-23.31%
EPS Next 3Y-8.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.65%, LBRT has a reasonable but not impressive dividend return.
The stock price of LBRT dropped by -46.62% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
LBRT's Dividend Yield is a higher than the industry average which is at 4.21.
Compared to an average S&P500 Dividend Yield of 2.52, LBRT has a dividend comparable with the average S&P500 company.
| 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 15.29% of its income as dividend. This is a sustainable payout ratio.
DP15.29%
EPS Next 2Y-23.31%
EPS Next 3Y-8.25%
12.08
+0.65 (+5.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.52%
Inst Owner Change0%
Ins Owners1.81%
Ins Owner Change0.53%
Market Cap1.96B
Analysts76.84
Price Target21.38 (76.99%)
Short Float %7.97%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend0.29
Dividend Growth(5Y)17.58%
DP15.29%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)72.65%
Min EPS beat(2)-24.52%
Max EPS beat(2)169.82%
EPS beat(4)2
Avg EPS beat(4)32.86%
Min EPS beat(4)-24.52%
Max EPS beat(4)169.82%
EPS beat(8)4
Avg EPS beat(8)16.38%
EPS beat(12)8
Avg EPS beat(12)43.06%
EPS beat(16)9
Avg EPS beat(16)2.87%
Revenue beat(2)0
Avg Revenue beat(2)-4.53%
Min Revenue beat(2)-6.21%
Max Revenue beat(2)-2.85%
Revenue beat(4)0
Avg Revenue beat(4)-3.45%
Min Revenue beat(4)-6.21%
Max Revenue beat(4)-2.28%
Revenue beat(8)1
Avg Revenue beat(8)-2.41%
Revenue beat(12)5
Avg Revenue beat(12)0.18%
Revenue beat(16)7
Avg Revenue beat(16)0.82%
PT rev (1m)-3.64%
PT rev (3m)0.2%
EPS NQ rev (1m)-28.47%
EPS NQ rev (3m)-80.36%
EPS NY rev (1m)-10.01%
EPS NY rev (3m)-57.24%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-7.17%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-6.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 11.16 | ||
| P/S | 0.45 | ||
| P/FCF | 11 | ||
| P/OCF | 2.36 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 2.7 |
EPS(TTM)1.41
EY11.67%
EPS(NY)1.08
Fwd EY8.96%
FCF(TTM)1.1
FCFY9.09%
OCF(TTM)5.11
OCFY42.29%
SpS26.58
BVpS12.19
TBVpS12.19
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 15.97% | ||
| ROCE | 14.61% | ||
| ROIC | 11.25% | ||
| ROICexc | 11.34% | ||
| ROICexgc | 11.34% | ||
| OM | 8.9% | ||
| PM (TTM) | 7.32% | ||
| GM | 25.83% | ||
| FCFM | 4.13% |
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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 128.91% | ||
| Cap/Sales | 15.09% | ||
| Interest Coverage | 11.61 | ||
| Cash Conversion | 93.27% | ||
| Profit Quality | 56.43% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 3.09 |
F-Score4
WACC9.43%
ROIC/WACC1.19
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)-47.78%
EPS 3YN/A
EPS 5Y23.91%
EPS Q2Q%-91.49%
EPS Next Y-69.43%
EPS Next 2Y-23.31%
EPS Next 3Y-8.25%
EPS Next 5Y-16.78%
Revenue 1Y (TTM)-9.11%
Revenue growth 3Y20.43%
Revenue growth 5Y16.74%
Sales Q2Q%-8.91%
Revenue Next Year-8.31%
Revenue Next 2Y-0.26%
Revenue Next 3Y2.37%
Revenue Next 5Y0.95%
EBIT growth 1Y-49.16%
EBIT growth 3YN/A
EBIT growth 5Y28.84%
EBIT Next Year73.99%
EBIT Next 3Y33.92%
EBIT Next 5Y14.56%
FCF growth 1Y-56.64%
FCF growth 3YN/A
FCF growth 5Y22.03%
OCF growth 1Y-18.25%
OCF growth 3Y82.92%
OCF growth 5Y26.01%