Liberty Energy (NYSE:LBRT) - Share price, News & Analysis

Q: What is the Fair Price of LBRT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

LBRT ($13.38) is trading below our estimate of [[fair value]] ($18.97)

LBRT fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

LBRT Stock Overview

Liberty Energy Inc. provides hydraulic fracturing and wireline services, and related goods to onshore oil and natural gas exploration and production companies in North America.

Rewards

Trading at 29.5% below our estimate of its fair value

Earnings are forecast to grow 35.62% per year

Risk Analysis

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Liberty Energy Competitors

ProFrac Holding

NasdaqGS:PFHC

US$2.8b

NexTier Oilfield Solutions

NYSE:NEX

US$2.5b

USA Compression Partners

NYSE:USAC

US$1.7b

TechnipFMC

NYSE:FTI

US$3.2b

Price History & Performance

Summary of all time highs, changes and price drops for Liberty Energy
Historical stock prices
Current Share Price	US$13.38
52 Week High	US$20.05
52 Week Low	US$8.50
Beta	2.37
1 Month Change	-18.61%
3 Month Change	-9.66%
1 Year Change	-5.17%
3 Year Change	-10.80%
5 Year Change	n/a
Change since IPO	-38.48%

Recent News & Updates

Jun 15

Liberty Energy: 'Dude, Where's My Power?'

Liberty's business is expanding and EBITDA per fleet is on the rise. Liberty's stock is cheap in EV/EBITDA terms and needs to go higher just to maintain multiples as cash flow increases. We think LBRT stock is a buy and are recommending it at current levels.

Jun 03

Estimating The Intrinsic Value Of Liberty Energy Inc. (NYSE:LBRT)

How far off is Liberty Energy Inc. ( NYSE:LBRT ) from its intrinsic value? Using the most recent financial data, we'll...

Shareholder Returns

	LBRT	US Energy Services	US Market
7D	-2.8%	-0.4%	6.3%
1Y	-5.2%	15.4%	-18.8%

Return vs Industry: LBRT underperformed the US Energy Services industry which returned 15.4% over the past year.

Return vs Market: LBRT exceeded the US Market which returned -18.8% over the past year.

Price Volatility

Is LBRT's price volatile compared to industry and market?
LBRT volatility
LBRT Average Weekly Movement	9.1%
Energy Services Industry Average Movement	9.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: LBRT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: LBRT's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	3,601	Chris Wright	https://www.libertyfrac.com

Liberty Energy Inc. provides hydraulic fracturing and wireline services, and related goods to onshore oil and natural gas exploration and production companies in North America. It also offers hydraulic fracturing pressure pumping services, including pressure pumping and pumpdown perforating services, as well wireline services, proppant delivery solutions, data analytics, related goods and technologies. In addition, the company owns operates two sand mines in the Permian Basin.

Liberty Energy Fundamentals Summary

How do Liberty Energy's earnings and revenue compare to its market cap?
LBRT fundamental statistics
Market Cap	US$2.50b
Earnings (TTM)	-US$150.41m
Revenue (TTM)	US$2.71b

0.9x

P/S Ratio

-16.6x

P/E Ratio

Is LBRT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LBRT income statement (TTM)
Revenue	US$2.71b
Cost of Revenue	US$2.42b
Gross Profit	US$290.51m
Other Expenses	US$440.93m
Earnings	-US$150.41m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.81
Gross Margin	10.71%
Net Profit Margin	-5.55%
Debt/Equity Ratio	17.2%

How did LBRT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is LBRT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LBRT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LBRT. This is calculated by dividing LBRT's market cap by their current preferred multiple.
What is LBRT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.50b

LBRT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	18.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does LBRT's PS Ratio compare to its peers?

LBRT PS Ratio vs Peers

The above table shows the PS ratio for LBRT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.3x
PFHC ProFrac Holding	0.8x	37.5%	US$2.8b
NEX NexTier Oilfield Solutions	1.3x	19.3%	US$2.5b
USAC USA Compression Partners	2.6x	11.2%	US$1.7b
FTI TechnipFMC	0.5x	7.1%	US$3.2b
LBRT Liberty Energy	0.9x	7.2%	US$2.5b

Forward PS

Price-To-Sales vs Peers: LBRT is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.3x).

Price to Earnings Ratio vs Industry

How does LBRT's PE Ratio compare vs other companies in the US Energy Services Industry?

Price-To-Sales vs Industry: LBRT is good value based on its Price-To-Sales Ratio (0.9x) compared to the US Energy Services industry average (1.1x)

Price to Sales Ratio vs Fair Ratio

What is LBRT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LBRT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.9x
Fair PS Ratio	0.7x

Price-To-Sales vs Fair Ratio: LBRT is expensive based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

Share Price vs Fair Value

What is the Fair Price of LBRT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LBRT ($13.38) is trading below our estimate of fair value ($18.97)

Significantly Below Fair Value: LBRT is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LBRT's PEG Ratio to determine if it is good value.

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Future Growth

How is Liberty Energy forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

35.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LBRT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: LBRT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LBRT is expected to become profitable in the next 3 years.

Revenue vs Market: LBRT's revenue (7.2% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: LBRT's revenue (7.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LBRT's Return on Equity is forecast to be low in 3 years time (16%).

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Past Performance

How has Liberty Energy performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-58.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LBRT is currently unprofitable.

Growing Profit Margin: LBRT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LBRT is unprofitable, and losses have increased over the past 5 years at a rate of 58.3% per year.

Accelerating Growth: Unable to compare LBRT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LBRT is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-1.8%).

Return on Equity

High ROE: LBRT has a negative Return on Equity (-12.47%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Liberty Energy's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LBRT's short term assets ($761.6M) exceed its short term liabilities ($623.2M).

Long Term Liabilities: LBRT's short term assets ($761.6M) exceed its long term liabilities ($334.0M).

Debt to Equity History and Analysis

Debt Level: LBRT's net debt to equity ratio (14.5%) is considered satisfactory.

Reducing Debt: LBRT's debt to equity ratio has reduced from 29.6% to 17.2% over the past 5 years.

Debt Coverage: LBRT's debt is well covered by operating cash flow (57.7%).

Interest Coverage: Insufficient data to determine if LBRT's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is Liberty Energy current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate LBRT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LBRT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LBRT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LBRT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: LBRT is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LBRT has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure

CEO

Chris Wright (56 yo)

5.5yrs

Tenure

US$4,611,372

Compensation

Mr. Christopher A. Wright, also known as Chris, is an Independent Director of Accretion Acquisition Corp. since April 2021. He is the founder of Liberty Oilfield Services Inc. and has been its Chief Execu...

CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD4.61M) is below average for companies of similar size in the US market ($USD6.87M).

Compensation vs Earnings: Chris's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: LBRT's management team is seasoned and experienced (5.5 years average tenure).

Board Members

Experienced Board: LBRT's board of directors are considered experienced (3.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: LBRT insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31