LIBERTY ENERGY INC (LBRT) Stock Fundamental Analysis
USA - NYSE:LBRT - US53115L1044 - Common Stock
12.34 USD
+0.08 (+0.65%)
12.41 USD
+0.07 (+0.57%)
Taking everything into account, LBRT scores 5 out of 10 in our fundamental rating. LBRT was compared to 61 industry peers in the Energy Equipment & Services industry. LBRT has an average financial health and profitability rating. 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.
In the past year LBRT had a positive cash flow from operations.
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 6.30%, LBRT is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
LBRT has a better Return On Equity (10.65%) than 63.93% of its industry peers.
LBRT has a Return On Invested Capital of 5.58%. This is comparable to the rest of the industry: LBRT outperforms 45.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LBRT is significantly above the industry average of 8.04%.
The 3 year average ROIC (18.48%) for LBRT is well above the current ROIC(5.58%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 10.65% | ||
| ROIC | 5.58% |
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 has a Profit Margin (5.29%) which is in line with its industry peers.
LBRT's Profit Margin has improved in the last couple of years.
LBRT has a worse Operating Margin (4.68%) than 67.21% of its industry peers.
LBRT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 23.07%, LBRT perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
LBRT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.68% | ||
| PM (TTM) | 5.29% | ||
| GM | 23.07% |
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
LBRT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LBRT has less shares outstanding
The number of shares outstanding for LBRT has been increased compared to 5 years ago.
The debt/assets ratio for LBRT is higher compared to a year ago.
2.2 Solvency
LBRT has an Altman-Z score of 2.71. This is not the best score and indicates that LBRT is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.71, LBRT is doing good in the industry, outperforming 72.13% of the companies in the same industry.
LBRT has a debt to FCF ratio of 3.12. This is a good value and a sign of high solvency as LBRT would need 3.12 years to pay back of all of its debts.
The Debt to FCF ratio of LBRT (3.12) is better than 62.30% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that LBRT is not too dependend on debt financing.
LBRT has a better Debt to Equity ratio (0.18) than 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 3.12 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.65
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.16 indicates that LBRT should not have too much problems paying its short term obligations.
LBRT has a worse Current ratio (1.16) than 86.89% of its industry peers.
LBRT has a Quick Ratio of 1.16. This is a bad value and indicates that LBRT is not financially healthy enough and could expect problems in meeting its short term obligations.
LBRT's Quick ratio of 0.91 is on the low side compared to the rest of the industry. LBRT is outperformed by 83.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
LBRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.35%.
LBRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.91% yearly.
Looking at the last year, LBRT shows a decrease in Revenue. The Revenue has decreased by -9.32% in the last year.
The Revenue has been growing by 16.74% on average over the past years. This is quite good.
EPS 1Y (TTM)-59.35%
EPS 3YN/A
EPS 5Y23.91%
EPS Q2Q%-80.33%
Revenue 1Y (TTM)-9.32%
Revenue growth 3Y20.43%
Revenue growth 5Y16.74%
Sales Q2Q%-10.12%
3.2 Future
The Earnings Per Share is expected to decrease by -18.97% on average over the next years. This is quite bad
LBRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.
EPS Next Y-83.92%
EPS Next 2Y-83.86%
EPS Next 3Y-37.78%
EPS Next 5Y-18.97%
Revenue Next Year-10.78%
Revenue Next 2Y-5.7%
Revenue Next 3Y-2.26%
Revenue Next 5Y2.82%
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
A Price/Earnings ratio of 12.34 indicates a correct valuation of LBRT.
Based on the Price/Earnings ratio, LBRT is valued a bit cheaper than the industry average as 73.77% of the companies are valued more expensively.
LBRT is valuated cheaply when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 257.41 indicates a quite expensive valuation of LBRT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LBRT indicates a slightly more expensive valuation: LBRT is more expensive than 75.41% of the companies listed in the same industry.
LBRT is valuated expensively when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 257.41 |
4.2 Price Multiples
90.16% of the companies in the same industry are more expensive than LBRT, based on the Enterprise Value to EBITDA ratio.
LBRT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.98 | ||
| EV/EBITDA | 3.41 |
4.3 Compensation for Growth
LBRT has a very decent profitability rating, which may justify a higher PE ratio.
LBRT's earnings are expected to decrease with -37.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-83.86%
EPS Next 3Y-37.78%
5. Dividend
5.1 Amount
LBRT has a Yearly Dividend Yield of 2.55%.
Compared to an average industry Dividend Yield of 3.31, LBRT pays a bit more dividend than its industry peers.
LBRT's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 23.70% of its income as dividend. This is a sustainable payout ratio.
DP23.7%
EPS Next 2Y-83.86%
EPS Next 3Y-37.78%
12.34
+0.08 (+0.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.71%
Inst Owner Change0%
Ins Owners2%
Ins Owner Change0%
Market Cap2.00B
Analysts75.56
Price Target14.74 (19.45%)
Short Float %5.63%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend0.29
Dividend Growth(5Y)17.58%
DP23.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)85.62%
Min EPS beat(2)-19.97%
Max EPS beat(2)191.21%
EPS beat(4)2
Avg EPS beat(4)79.13%
Min EPS beat(4)-24.52%
Max EPS beat(4)191.21%
EPS beat(8)4
Avg EPS beat(8)38.01%
EPS beat(12)7
Avg EPS beat(12)31.68%
EPS beat(16)9
Avg EPS beat(16)26.16%
Revenue beat(2)2
Avg Revenue beat(2)1.09%
Min Revenue beat(2)0.37%
Max Revenue beat(2)1.81%
Revenue beat(4)2
Avg Revenue beat(4)-1.72%
Min Revenue beat(4)-6.21%
Max Revenue beat(4)1.81%
Revenue beat(8)3
Avg Revenue beat(8)-1.06%
Revenue beat(12)5
Avg Revenue beat(12)-0.51%
Revenue beat(16)8
Avg Revenue beat(16)0.43%
PT rev (1m)-0.6%
PT rev (3m)-11.28%
EPS NQ rev (1m)15.8%
EPS NQ rev (3m)-91.84%
EPS NY rev (1m)13.73%
EPS NY rev (3m)-27.1%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 257.41 | ||
| P/S | 0.49 | ||
| P/FCF | 13.98 | ||
| P/OCF | 2.55 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 3.41 |
EPS(TTM)1
EY8.1%
EPS(NY)0.05
Fwd EY0.39%
FCF(TTM)0.88
FCFY7.15%
OCF(TTM)4.84
OCFY39.25%
SpS25.33
BVpS12.56
TBVpS12.56
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 10.65% | ||
| ROCE | 7.24% | ||
| ROIC | 5.58% | ||
| ROICexc | 5.62% | ||
| ROICexgc | 5.62% | ||
| OM | 4.68% | ||
| PM (TTM) | 5.29% | ||
| GM | 23.07% | ||
| FCFM | 3.49% |
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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 3.12 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 124.41% | ||
| Cap/Sales | 15.64% | ||
| Interest Coverage | 5.17 | ||
| Cash Conversion | 110.89% | ||
| Profit Quality | 65.94% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.71 |
F-Score4
WACC8.57%
ROIC/WACC0.65
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)-59.35%
EPS 3YN/A
EPS 5Y23.91%
EPS Q2Q%-80.33%
EPS Next Y-83.92%
EPS Next 2Y-83.86%
EPS Next 3Y-37.78%
EPS Next 5Y-18.97%
Revenue 1Y (TTM)-9.32%
Revenue growth 3Y20.43%
Revenue growth 5Y16.74%
Sales Q2Q%-10.12%
Revenue Next Year-10.78%
Revenue Next 2Y-5.7%
Revenue Next 3Y-2.26%
Revenue Next 5Y2.82%
EBIT growth 1Y-67.1%
EBIT growth 3YN/A
EBIT growth 5Y28.84%
EBIT Next Year47.47%
EBIT Next 3Y16.77%
EBIT Next 5Y14.1%
FCF growth 1Y-55.28%
FCF growth 3YN/A
FCF growth 5Y22.03%
OCF growth 1Y-6.52%
OCF growth 3Y82.92%
OCF growth 5Y26.01%