Liberty Energy Inc. Fundamental Analysis (NYSE: LBRT)
Liberty Energy Inc. (NYSE: LBRT) shows weak financial fundamentals with a PE ratio of 22.91, profit margin of 2.92%, and ROE of 6.08%. The company generates $4.2B in annual revenue with weak year-over-year growth of -7.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LBRT's fundamental strength across five key dimensions:
Efficiency Score
WeakLBRT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLBRT trades at attractive valuation levels.
Growth Score
WeakLBRT faces weak or negative growth trends.
Financial Health Score
ExcellentLBRT maintains a strong and stable balance sheet.
Profitability Score
WeakLBRT struggles to sustain strong margins.
Key Financial Metrics
Is LBRT Expensive or Cheap?
P/E Ratio
LBRT trades at 22.91 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LBRT's PEG of -0.53 indicates potential undervaluation.
Price to Book
The market values Liberty Energy Inc. at 1.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.86 times EBITDA. This is generally considered low.
How Well Does LBRT Make Money?
Net Profit Margin
For every $100 in sales, Liberty Energy Inc. keeps $2.92 as profit after all expenses.
Operating Margin
Core operations generate 0.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.08 in profit for every $100 of shareholder equity.
ROA
Liberty Energy Inc. generates $2.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Liberty Energy Inc. generates limited operating cash flow of $296.14M, signaling weaker underlying cash strength.
Free Cash Flow
Liberty Energy Inc. generates weak or negative free cash flow of $-409.53M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.51 in free cash annually.
FCF Yield
LBRT converts -14.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How LBRT Stacks Against Its Sector Peers
| Metric | LBRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.91 | 22.19 | Neutral |
| ROE | 6.08% | 1142.00% | Weak |
| Net Margin | 2.92% | 1205.00% | Weak |
| Debt/Equity | 0.82 | 2.82 | Strong (Low Leverage) |
| Current Ratio | 1.99 | 3.03 | Neutral |
| ROA | 2.73% | 477.00% | Weak |
LBRT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Liberty Energy Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
118.31%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
167.33%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
275.57%
Industry Style: Cyclical, Value, Commodity
High Growth