LIBERTY ENERGY INC (LBRT) Stock Fundamental Analysis
NYSE:LBRT - New York Stock Exchange, Inc. - US53115L1044 - Common Stock - Currency: USD
LBRT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 63 industry peers in the Energy Equipment & Services industry. While LBRT belongs to the best of the industry regarding profitability, 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.
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.
LBRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.58%, LBRT is in the better half of the industry, outperforming 69.84% of the companies in the same industry.
LBRT has a Return On Equity of 12.88%. This is in the better half of the industry: LBRT outperforms 73.02% of its industry peers.
With a decent Return On Invested Capital value of 8.53%, LBRT is doing good in the industry, outperforming 63.49% 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 8.50%.
The last Return On Invested Capital (8.53%) 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 | 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.
With a Operating Margin value of 6.92%, LBRT is not doing good in the industry: 65.08% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of LBRT has grown nicely.
Looking at the Gross Margin, with a value of 24.65%, LBRT is in line with its industry, outperforming 46.03% of the companies in the same industry.
LBRT's Gross Margin has improved in the last couple of years.
| 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.
LBRT has less shares outstanding than it did 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 2.94 indicates that LBRT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.94, LBRT is doing good in the industry, outperforming 76.19% of the companies in the same industry.
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's Debt to FCF ratio of 2.21 is fine compared to the rest of the industry. LBRT outperforms 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 | 2.94 |
ROIC/WACC0.99
WACC8.64%
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 worse Current ratio (1.20) than 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.
The Quick ratio of LBRT (0.91) is worse than 82.54% of its industry peers.
| 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
The Earnings Per Share is expected to decrease by -10.09% on average over the next years. This is quite bad
The Revenue is expected to grow by 1.51% on average over the next years.
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
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 8.71, the valuation of LBRT can be described as reasonable.
Based on the Price/Earnings ratio, LBRT is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.34, LBRT is valued rather cheaply.
A Price/Forward Earnings ratio of 26.39 indicates a quite expensive valuation of LBRT.
LBRT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. LBRT is more expensive than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.03, LBRT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 26.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LBRT indicates a rather cheap valuation: LBRT is cheaper than 93.65% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LBRT is valued a bit cheaper than the industry average as 69.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 3.2 |
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 -13.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-48.29%
EPS Next 3Y-13.27%
5. Dividend
5.1 Amount
LBRT has a Yearly Dividend Yield of 2.44%.
LBRT's Dividend Yield is a higher than the industry average which is at 3.49.
Compared to an average S&P500 Dividend Yield of 2.44, LBRT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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
19.61% of the earnings are spent on dividend by LBRT. This is a low number and sustainable payout ratio.
DP19.61%
EPS Next 2Y-48.29%
EPS Next 3Y-13.27%
12.98
-0.15 (-1.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners97.57%
Inst Owner Change-4.83%
Ins Owners2%
Ins Owner Change0.69%
Market Cap2.10B
Analysts75.79
Price Target16.62 (28.04%)
Short Float %4.62%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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)-25.1%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)3.43%
EPS NY rev (1m)-5.71%
EPS NY rev (3m)-28.55%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 26.39 | ||
| P/S | 0.5 | ||
| P/FCF | 9.46 | ||
| P/OCF | 2.44 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 3.2 |
EPS(TTM)1.49
EY11.48%
EPS(NY)0.49
Fwd EY3.79%
FCF(TTM)1.37
FCFY10.57%
OCF(TTM)5.32
OCFY41.01%
SpS26.05
BVpS12.19
TBVpS12.19
PEG (NY)N/A
PEG (5Y)0.36
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 | 2.94 |
F-Score4
WACC8.64%
ROIC/WACC0.99
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%