Liberty Energy Inc (LBRT, Financial), a prominent player in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. With a current market cap of $3.02 billion and a stock price of $17.74, the company's stock has experienced a 20.07% increase since July 2023. Despite a minor setback of 0.81% over the past week, the overall performance remains impressive. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of LBRT stands at $23.66, indicating that the stock is modestly undervalued. This is a significant improvement from three months ago when the stock was significantly undervalued with a GF Value of $23.14.
Unveiling Liberty Energy Inc
Liberty Energy Inc operates in the Oil & Gas industry, providing hydraulic fracturing services—mainly pressure pumping—in major basins throughout North America. The company's 2020 acquisition of Schlumberger's OneStim business segment positioned Liberty as one of the largest pressure pumpers in North America. This acquisition also expanded Liberty's technological portfolio and added wireline operations and two Permian frac sand mines to its assets. 
Profitability Analysis
Liberty Energy Inc's profitability is commendable, with a Profitability Rank of 5/10. The company's operating margin stands at 16.59%, outperforming 63.24% of 982 companies in the same industry. The ROE and ROA, standing at 41.06% and 23.44% respectively, are also impressive, surpassing over 87% of companies in the industry. The company's ROIC of 35.81% is better than 94.92% of 1083 companies, indicating efficient cash flow generation relative to the capital invested in the business. Over the past decade, Liberty has maintained profitability for three years, outperforming 32.84% of 953 companies. 
Growth Prospects
Liberty Energy Inc's growth prospects are promising, despite a Growth Rank of 3/10. The company's 3-year revenue growth rate per share is 5.00%, outperforming 39.04% of 858 companies. However, the 5-year revenue growth rate per share has seen a decline of 3.40%. The total revenue growth rate for the next 3 to 5 years is estimated at 3.49%, surpassing 47.88% of 259 companies. The 3-year EPS without NRI growth rate stands at 58.50%, outperforming 80.06% of 692 companies. However, the EPS without NRI growth rate for the next 3 to 5 years is estimated to decline by 14.24%. 
Major Stockholders
Jim Simons (Trades, Portfolio) is the largest holder of Liberty Energy Inc's stock, owning 0.95% of the shares. HOTCHKIS & WILEY and First Eagle Investment (Trades, Portfolio) follow closely, holding 0.3% and 0.12% of the shares, respectively.
Competitive Landscape
Liberty Energy Inc faces stiff competition from NexTier Oilfield Solutions Inc (NEX, Financial) with a market cap of $2.42 billion, Weatherford International PLC (WFRD, Financial) with a market cap of $6.57 billion, and TechnipFMC PLC (FTI, Financial) with a market cap of $8.73 billion.
Conclusion
In conclusion, Liberty Energy Inc's stock performance has been impressive over the past three months, with a 20.07% increase. The company's profitability and growth prospects are promising, despite some areas of concern. The competitive landscape is challenging, but Liberty's strategic acquisitions and efficient operations position it well for future growth.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
