LIBERTY ENERGY INC (LBRT) Stock Fundamental Analysis
NYSE:LBRT - New York Stock Exchange, Inc. - US53115L1044 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to LBRT. LBRT was compared to 59 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 is valued correctly, 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
Looking at the Return On Assets, with a value of 9.59%, LBRT belongs to the top of the industry, outperforming 81.03% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.97%, LBRT is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.25%, LBRT belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LBRT is significantly above the industry average of 8.19%.
The 3 year average ROIC (18.48%) for LBRT is well above the current ROIC(11.25%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of LBRT (7.32%) is comparable to the rest of the industry.
LBRT's Profit Margin has improved in the last couple of years.
LBRT has a Operating Margin of 8.90%. This is comparable to the rest of the industry: LBRT outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of LBRT has grown nicely.
With a Gross Margin value of 25.83%, LBRT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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.
Compared to 1 year ago, LBRT has less shares outstanding
Compared to 5 years ago, LBRT has more shares outstanding
The debt/assets ratio for LBRT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.49 indicates that LBRT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.49, LBRT belongs to the best of the industry, outperforming 82.76% 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.
With a decent Debt to FCF ratio value of 2.58, LBRT is doing good in the industry, outperforming 68.97% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that LBRT is not too dependend on debt financing.
LBRT has a Debt to Equity ratio of 0.20. This is in the better half of the industry: LBRT outperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.2
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.27 indicates that LBRT should not have too much problems paying its short term obligations.
LBRT's Current ratio of 1.27 is on the low side compared to the rest of the industry. LBRT is outperformed by 81.03% of its industry peers.
A Quick Ratio of 0.97 indicates that LBRT may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, LBRT is not doing good in the industry: 81.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for LBRT have decreased strongly by -47.92% 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 20.94% on average per year.
Looking at the last year, LBRT shows a decrease in Revenue. The Revenue has decreased by -9.12% in the last year.
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)-47.92%
EPS 3YN/A
EPS 5Y20.94%
EPS Q2Q%-81.48%
Revenue 1Y (TTM)-9.12%
Revenue growth 3Y20.43%
Revenue growth 5Y16.74%
Sales Q2Q%-12.22%
3.2 Future
Based on estimates for the next years, LBRT will show a decrease in Earnings Per Share. The EPS will decrease by -4.04% on average per year.
LBRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.25% yearly.
EPS Next Y-61.66%
EPS Next 2Y-14.08%
EPS Next 3Y-3.2%
EPS Next 5Y-4.04%
Revenue Next Year-6.8%
Revenue Next 2Y0.78%
Revenue Next 3Y4.11%
Revenue Next 5Y1.25%
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
With a Price/Earnings ratio of 10.94, the valuation of LBRT can be described as very reasonable.
Based on the Price/Earnings ratio, LBRT is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. LBRT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 28.53 indicates a quite expensive valuation of LBRT.
Based on the Price/Forward Earnings ratio, LBRT is valued a bit more expensive than the industry average as 75.86% of the companies are valued more cheaply.
LBRT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 28.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LBRT is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as LBRT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.19 | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
The decent profitability rating of LBRT may justify a higher PE ratio.
LBRT's earnings are expected to decrease with -3.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-14.08%
EPS Next 3Y-3.2%
5. Dividend
5.1 Amount
LBRT has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, LBRT pays a bit more dividend than its industry peers.
LBRT's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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.
LBRT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.58%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
15.29% of the earnings are spent on dividend by LBRT. This is a low number and sustainable payout ratio.
DP15.29%
EPS Next 2Y-14.08%
EPS Next 3Y-3.2%
17.83
+0.22 (+1.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.52%
Inst Owner Change-6.19%
Ins Owners1.81%
Ins Owner Change-0.44%
Market Cap2.89B
Analysts76.84
Price Target22.19 (24.45%)
Short Float %8.94%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend0.29
Dividend Growth(5Y)17.58%
DP15.29%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.74%
Min EPS beat(2)-24.52%
Max EPS beat(2)-12.96%
EPS beat(4)1
Avg EPS beat(4)-12.83%
Min EPS beat(4)-24.52%
Max EPS beat(4)0.65%
EPS beat(8)3
Avg EPS beat(8)-6.47%
EPS beat(12)7
Avg EPS beat(12)27.82%
EPS beat(16)8
Avg EPS beat(16)-8.56%
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)6.65%
PT rev (3m)4.88%
EPS NQ rev (1m)-64%
EPS NQ rev (3m)-87.21%
EPS NY rev (1m)-52.49%
EPS NY rev (3m)-51.62%
Revenue NQ rev (1m)-5.95%
Revenue NQ rev (3m)-19.59%
Revenue NY rev (1m)-4.67%
Revenue NY rev (3m)-5.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 28.53 | ||
| P/S | 0.67 | ||
| P/FCF | 16.19 | ||
| P/OCF | 3.48 | ||
| P/B | 1.46 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)1.63
EY9.14%
EPS(NY)0.62
Fwd EY3.51%
FCF(TTM)1.1
FCFY6.18%
OCF(TTM)5.12
OCFY28.73%
SpS26.65
BVpS12.22
TBVpS12.22
PEG (NY)N/A
PEG (5Y)0.52
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 | 3.49 |
F-Score4
WACC9.39%
ROIC/WACC1.2
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)-47.92%
EPS 3YN/A
EPS 5Y20.94%
EPS Q2Q%-81.48%
EPS Next Y-61.66%
EPS Next 2Y-14.08%
EPS Next 3Y-3.2%
EPS Next 5Y-4.04%
Revenue 1Y (TTM)-9.12%
Revenue growth 3Y20.43%
Revenue growth 5Y16.74%
Sales Q2Q%-12.22%
Revenue Next Year-6.8%
Revenue Next 2Y0.78%
Revenue Next 3Y4.11%
Revenue Next 5Y1.25%
EBIT growth 1Y-49.16%
EBIT growth 3YN/A
EBIT growth 5Y28.84%
EBIT Next Year78.59%
EBIT Next 3Y35.81%
EBIT Next 5Y16.27%
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%