Liberty Energy Inc (LBRT, Financial) has recently caught the attention of investors with its notable stock performance. Over the past three months, the company's stock price has surged by 22%, marking a significant gain in a relatively short period. As of the latest data, Liberty Energy's market capitalization stands at $3.4 billion, with a current stock price of $20.14. Despite this impressive uptick, the stock has experienced no change over the past week, indicating a momentary stabilization after its rapid ascent.
When assessing the stock's valuation, the GF Value is a critical metric. Currently, the GF Value is set at $24.16, up from the past GF Value of $23.68 three months ago. This increase suggests that the stock was significantly undervalued in the past but is now considered modestly undervalued, providing a potentially attractive entry point for value investors.
Introduction to Liberty Energy Inc
Liberty Energy Inc operates within the oil & gas industry, specializing in hydraulic fracturing services and pressure pumping across North America. The company's expansion through the acquisition of Schlumberger's OneStim business has positioned it as one of the largest pressure pumpers on the continent. This strategic move has also broadened Liberty's technological capabilities and operational reach, including wireline operations and frac sand mines in the Permian Basin.
Assessing Profitability
Liberty Energy's financial health can be gauged through its Profitability Rank, which currently stands at 5/10. This rank reflects the company's moderate profitability relative to its peers. The Operating Margin is a robust 16.93%, surpassing 64.57% of 985 companies in the same industry. Furthermore, the company's Return on Equity (ROE) is an impressive 38.78%, outperforming 89.56% of its industry counterparts. Liberty's Return on Assets (ROA) and Return on Invested Capital (ROIC) are equally strong at 22.23% and 32.38%, respectively, indicating efficient management and profitability. Over the past decade, the company has maintained profitability for three years, which is better than 32.99% of 961 companies in the industry.
Growth Prospects
The Growth Rank for Liberty Energy is currently at 3/10, suggesting that the company's growth is lower than some investors might desire. However, the 3-Year Revenue Growth Rate per Share stands at 5.00%, which is better than 38.82% of 863 companies. The 5-Year Revenue Growth Rate per Share shows a decline of -3.40%, yet this still ranks better than 27.09% of 790 companies. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 5.31%, indicating potential for future revenue increases. The 3-Year EPS without NRI Growth Rate is a remarkable 56.30%, outpacing 78.68% of 741 companies. However, the EPS Growth Rate (Future 3Y To 5Y Est) is estimated at -14.68%, which is a concern for future earnings potential.
Notable Shareholders
Liberty Energy's shareholder base includes several prominent investors. Jim Simons (Trades, Portfolio) leads the pack with 1,249,800 shares, representing a 0.74% stake in the company. Following him is HOTCHKIS & WILEY, holding 462,930 shares, which equates to a 0.27% share percentage. First Eagle Investment (Trades, Portfolio) maintains a position with 182,961 shares, accounting for 0.11% of the company's shares.
Competitive Landscape
In comparison to its competitors, Liberty Energy holds its own within the oil & gas industry. Cactus Inc (WHD, Financial) has a market cap of $2.83 billion, Tidewater Inc (TDW, Financial) is valued at $3.2 billion, and USA Compression Partners LP (USAC, Financial) comes in at $2.36 billion. These figures place Liberty Energy in a competitive position, with a market cap that is either on par with or exceeds that of its closest rivals.
Conclusion
In summary, Liberty Energy Inc's stock performance has been impressive over the past quarter, with a 22% increase in stock price. The company's current valuation suggests it is modestly undervalued, offering potential for investors. Liberty's profitability metrics are strong, particularly in terms of ROE and ROIC. While the Growth Rank is low, there are positive signs in revenue and EPS growth rates. The company's shareholder base includes notable investors, and its market cap is competitive within the industry. As the oil & gas sector continues to evolve, Liberty Energy's strategic acquisitions and operational expansions may well position it for continued success in the marketplace.
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.
