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. LBRT scores excellent on profitability, but there are some minor concerns on its financial health. LBRT has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: LBRT reported negative net income in multiple years.
In the past 5 years LBRT always reported a positive cash flow from operatings.
1.2 Ratios
LBRT has a better Return On Assets (7.58%) than 69.84% of its industry peers.
With a decent Return On Equity value of 12.88%, LBRT is doing good in 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 8.65%.
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
Looking at the Profit Margin, with a value of 6.03%, LBRT is in line with its industry, outperforming 53.97% of the companies in the same industry.
LBRT's Profit Margin has improved in the last couple of years.
LBRT has a worse Operating Margin (6.92%) than 65.08% of its industry peers.
In the last couple of years the Operating Margin of LBRT has grown nicely.
LBRT has a Gross Margin (24.65%) which is comparable to the rest of the 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.
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
The debt/assets ratio for LBRT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.84 indicates that LBRT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.84, LBRT is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
LBRT has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as LBRT would need 2.21 years to pay back of 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.
LBRT's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. LBRT outperforms 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.9
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.20 indicates that LBRT should not have too much problems paying its short term obligations.
LBRT has a Current ratio of 1.20. This is amonst the worse of the industry: LBRT underperforms 85.71% of its industry peers.
LBRT has a Quick Ratio of 1.20. 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 has a Quick ratio of 0.91. This is amonst the worse of the industry: LBRT underperforms 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| 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 -44.81%.
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 -7.45% 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)-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
Based on estimates for the next years, LBRT will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.78% on average per year.
Based on estimates for the next years, LBRT will show a small growth in Revenue. The Revenue will grow by 0.95% on average per year.
EPS Next Y-74.26%
EPS Next 2Y-48.63%
EPS Next 3Y-18.65%
EPS Next 5Y-16.78%
Revenue Next Year-9.75%
Revenue Next 2Y-3.53%
Revenue Next 3Y-0.22%
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
The Price/Earnings ratio is 7.78, which indicates a rather cheap valuation of LBRT.
Based on the Price/Earnings ratio, LBRT is valued cheaply inside the industry as 87.30% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LBRT to the average of the S&P500 Index (26.25), we can say LBRT is valued rather cheaply.
The Price/Forward Earnings ratio is 23.87, which indicates a rather expensive current valuation of LBRT.
Based on the Price/Forward Earnings ratio, LBRT is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.15. LBRT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 23.87 |
4.2 Price Multiples
92.06% 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 the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.45 | ||
| EV/EBITDA | 2.92 |
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 -18.65% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-48.63%
EPS Next 3Y-18.65%
5. Dividend
5.1 Amount
LBRT has a Yearly Dividend Yield of 2.66%.
In the last 3 months the price of LBRT has falen by -32.89%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
LBRT's Dividend Yield is a higher than the industry average which is at 3.86.
LBRT's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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-48.63%
EPS Next 3Y-18.65%
11.59
-0.45 (-3.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.52%
Inst Owner Change-4.83%
Ins Owners1.81%
Ins Owner Change0.61%
Market Cap1.88B
Analysts75.79
Price Target16.96 (46.33%)
Short Float %5.36%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)0.5%
PT rev (3m)-23.56%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-24.22%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 23.87 | ||
| P/S | 0.44 | ||
| P/FCF | 8.45 | ||
| P/OCF | 2.18 | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 2.92 |
EPS(TTM)1.49
EY12.86%
EPS(NY)0.49
Fwd EY4.19%
FCF(TTM)1.37
FCFY11.83%
OCF(TTM)5.32
OCFY45.93%
SpS26.05
BVpS12.19
TBVpS12.19
PEG (NY)N/A
PEG (5Y)0.33
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 | 2.84 |
F-Score4
WACC9.43%
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-74.26%
EPS Next 2Y-48.63%
EPS Next 3Y-18.65%
EPS Next 5Y-16.78%
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y20.43%
Revenue growth 5Y16.74%
Sales Q2Q%-8.91%
Revenue Next Year-9.75%
Revenue Next 2Y-3.53%
Revenue Next 3Y-0.22%
Revenue Next 5Y0.95%
EBIT growth 1Y-54.61%
EBIT growth 3YN/A
EBIT growth 5Y28.84%
EBIT Next Year65.1%
EBIT Next 3Y27.02%
EBIT Next 5Y14.56%
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%