Liberty Oilfield Services (LBRT) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: 2.79%
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.94
• Revenue Growth: -9.32%
• EPS Growth: -48.26%
• Country: US
• Employees: 5,700
• Sector: Energy
• Sector Strength: 58
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.12
• Shares Outstanding: 161,955,730
• 10 Day Avg. Volume: 2,440,933
• 30 Day Avg. Volume: 4,066,739
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: 2.87
• 1Y Price Target: $14.43
• Price Target Upside: 27.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: $11.50 ▲(1.95% Upside)

Liberty Oilfield Services' overall stock score reflects a mixed outlook. The company's financial performance is challenged by declining revenue and profitability margins, which weigh heavily on the score. Technical analysis indicates bearish momentum, further impacting the score. However, the stock's valuation is attractive, with a low P/E ratio and reasonable dividend yield. The earnings call highlights operational strengths and strategic initiatives, but market headwinds and pricing pressures pose significant risks.

Positive Factors

Earnings

LBRT reported an upside 1Q and guided to sequential improvement in 2Q.

Financial Performance

LBRT's first quarter revenue and adjusted EBITDA exceeded consensus expectations by 3% and 9%, respectively, driven by strong operating leverage and improved operational efficiencies.

Strategic Investment

LBRT's new Power Generation Services business and the value that these investments create seem under-appreciated, suggesting potential for future growth.

Negative Factors

Financial Guidance

Lowered EBITDA and CapEx guidance reflect financial challenges, with the company expected to consume ~$60MM of cash in 2H before dividend payments.

Macroeconomic Risks

Macroeconomic and oil price uncertainty creates potential downside risk for LBRT as a high beta, pureplay US Land Oil Field Services stock.

Market Outlook

Liberty saw a better than guided uptick in 2Q, but as telegraphed and consistent with peers, sees a decline in 2H.

Liberty Oilfield Services Business Overview & Revenue Model

Company Description

Liberty Oilfield Services (LBRT) is a leading provider of hydraulic fracturing services to onshore oil and natural gas exploration and production companies in the United States. The company specializes in offering comprehensive hydraulic fracturing solutions, which include high-performance pumping services, logistics, and technology-driven approaches to enhance well performance. Liberty operates primarily in key oil and gas basins, leveraging its advanced fleet and operational efficiency to meet the growing demands of the energy sector.

How the Company Makes Money

Liberty Oilfield Services generates revenue primarily through its hydraulic fracturing services, which are billed based on the volume of sand and fluids used in the fracking process as well as the number of pumping hours. The company's revenue model is largely driven by contracts with exploration and production companies, which often involve long-term agreements that provide stability and predictability in revenue streams. Additionally, Liberty benefits from economies of scale and operational efficiencies, allowing it to offer competitive pricing while maintaining healthy margins. Key partnerships with major oil and gas companies and a strong focus on technological innovation, such as leveraging data analytics to optimize fracking operations, further contribute to its earnings. Market dynamics, including oil and gas prices and demand for natural resources, also play a significant role in influencing the company's financial performance.

Liberty Oilfield Services Financial Statement Overview

Summary

Liberty Oilfield Services exhibits strong financial performance with solid profitability margins and a stable balance sheet. The company effectively manages leverage while generating robust cash flows. However, the recent decline in revenue growth could pose a challenge, necessitating strategic initiatives to revitalize top-line growth.

Income Statement

Liberty Oilfield Services shows a positive trajectory in profitability. The TTM Gross Profit Margin is 12.57%, and the Net Profit Margin is 6.02%, indicating effective cost management. However, Revenue Growth Rate has been negative recently, reflecting a decrease in revenue compared to the previous year. EBIT and EBITDA margins are solid at 6.95% and 20.41%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a stable financial position with a Debt-to-Equity Ratio of 0.29, indicating moderate leverage. The Return on Equity (ROE) is 12.88%, which suggests a decent return on shareholder investments. The Equity Ratio is 58.83%, highlighting a strong equity base relative to total assets. However, there is room for improvement in asset growth.

Cash Flow

The cash flow position is robust with a positive Free Cash Flow Growth Rate of 24.54% from the last annual report. The Operating Cash Flow to Net Income Ratio is 3.39, demonstrating strong cash generation efficiency relative to net income. The Free Cash Flow to Net Income Ratio is 0.87, indicating effective conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.10B	4.32B	4.75B	4.15B	2.47B	965.79M
Gross Profit	430.72M	609.61M	977.04M	677.16M	-41.90M	-72.28M
EBITDA	829.46M	941.01M	1.19B	748.99M	100.57M	3.32M
Net Income	216.82M	316.01M	556.32M	399.60M	-179.24M	-115.58M
Balance Sheet
Total Assets	3.44B	3.30B	3.03B	2.58B	2.04B	1.89B
Cash, Cash Equivalents and Short-Term Investments	19.56M	19.98M	36.78M	43.68M	20.00M	68.98M
Total Debt	516.88M	533.61M	405.31M	348.92M	243.63M	211.58M
Total Liabilities	1.41B	1.32B	1.19B	1.08B	810.22M	579.90M
Stockholders Equity	2.03B	1.98B	1.84B	1.50B	1.21B	1.15B
Cash Flow
Free Cash Flow	142.97M	178.34M	411.29M	71.04M	-63.33M	-18.21M
Operating Cash Flow	784.49M	829.37M	1.01B	530.36M	135.47M	85.42M
Investing Cash Flow	-540.28M	-643.11M	-672.33M	-450.66M	-186.49M	-100.27M
Financing Cash Flow	-254.80M	-202.71M	-349.31M	-55.77M	2.06M	-28.87M

Liberty Oilfield Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRT, the sentiment is Neutral. The current price of 11.28 is above the 20-day moving average (MA) of 11.23, below the 50-day MA of 11.80, and below the 200-day MA of 14.81, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 75.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LBRT.

Liberty Oilfield Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVX	72 Outperform	$1.15B	5.78	15.64%	―	82.86%	―
Sector *	65 Neutral	$15.25B	7.27	3.02%	5.36%	4.27%	-62.52%
LBRT	64 Neutral	$1.80B	8.66	10.92%	2.79%	-9.32%	-48.26%
HLX	64 Neutral	$928.95M	19.54	3.27%	―	-8.19%	―
AESI	56 Neutral	$1.44B	90.53	1.20%	8.53%	49.18%	-87.20%
OIS	53 Neutral	$326.59M	48.00	0.95%	―	-12.15%	―
PUMP	48 Neutral	$504.24M	―	-16.86%	―	-10.91%	-580.59%

Liberty Oilfield Services Corporate Events

Liberty Energy Director Audrey Robertson Resigns

On February 12, 2025, Audrey Robertson, a member of the Board of Directors of Liberty Energy Inc., announced her intention to resign from the board. Her resignation is contingent upon her confirmation by the U.S. Senate as the incoming Assistant Secretary of Energy, Efficiency and Renewables in the Department of Energy.