Liberty Oilfield Services (LBRT) AI Stock Analysis

• Market Cap: $1.90B
• Dividend Yield: 2.67%
• Average Volume (3M): 4.03M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.93
• Revenue Growth: -9.32%
• EPS Growth: -48.26%
• Country: US
• Employees: 5,700
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.12
• Shares Outstanding: 161,955,730
• 10 Day Avg. Volume: 6,258,522
• 30 Day Avg. Volume: 4,031,860
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 4.49
• Enterprise Value/Ebitda: 2.77
• 1Y Price Target: $14.38
• Price Target Upside: 23.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $14.00 ▲(19.86% Upside)

Liberty Oilfield Services' solid financial performance, coupled with attractive valuation, contributes positively to the stock score. The company's resilience in earnings despite industry challenges is commendable, though caution is warranted due to recent revenue declines and macroeconomic uncertainties.

Positive Factors

Company Growth

LBRT's proprietary mobile power generation units and established gas logistics business position the company uniquely well for success in its new venture.

Financial Performance

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

Share Repurchase

The company repurchased 1.55 million shares, representing approximately 1% of the total shares, indicating a positive outlook from management.

Negative Factors

Cash Flow Uncertainty

Lack of firm offtake and plans to play in the merchant power market create uncertainty around future cash flows.

Financial Challenges

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

Market Uncertainty

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

Liberty Oilfield Services Business Overview & Revenue Model

Company Description

Liberty Oilfield Services Inc. is a leading North American provider of hydraulic fracturing services to onshore oil and natural gas exploration and production companies. The company operates within the oilfield services sector, offering specialized technology, expertise, and equipment designed to enhance oil and gas production efficiency. With a commitment to innovation and safety, Liberty Oilfield Services delivers high-quality, cost-effective solutions to its clients.

How the Company Makes Money

Liberty Oilfield Services generates revenue primarily through the provision of hydraulic fracturing services. The company is contracted by oil and gas producers to perform fracturing operations, which involve the injection of fluid into subterranean rock formations to enhance the extraction of oil and gas. Key revenue streams include service fees for fracturing operations, rental of specialized equipment, and the sale of related consumables. Liberty maintains strategic partnerships with major exploration and production companies, leveraging these relationships to secure long-term contracts and ensure a steady stream of business. The company's earnings are influenced by factors such as the level of drilling activity, oil and gas prices, technological advancements, and regulatory developments in the industry.

Liberty Oilfield Services Financial Statement Overview

Summary

Liberty Oilfield Services showcases strong profitability and cash flow management with a solid balance sheet. However, negative revenue growth presents a challenge that needs addressing.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.32B	4.75B	4.15B	2.47B	965.79M
Gross Profit	609.61M	977.04M	677.16M	-41.90M	-72.28M
EBITDA	941.01M	1.19B	748.99M	100.57M	3.32M
Net Income	316.01M	556.32M	399.60M	-187.00M	-160.67M
Balance Sheet
Total Assets	3.30B	3.03B	2.58B	2.04B	1.89B
Cash, Cash Equivalents and Short-Term Investments	19.98M	36.78M	43.68M	20.00M	68.98M
Total Debt	533.61M	405.31M	348.92M	243.63M	211.58M
Total Liabilities	1.32B	1.19B	1.08B	810.22M	579.90M
Stockholders Equity	1.98B	1.84B	1.50B	1.21B	1.15B
Cash Flow
Free Cash Flow	178.34M	411.29M	71.04M	-63.33M	-18.21M
Operating Cash Flow	829.37M	1.01B	530.36M	135.47M	85.42M
Investing Cash Flow	-643.11M	-672.33M	-450.66M	-186.49M	-100.27M
Financing Cash Flow	-202.71M	-349.31M	-55.77M	2.06M	-28.87M

Liberty Oilfield Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRT, the sentiment is Negative. The current price of 11.68 is below the 20-day moving average (MA) of 12.12, below the 50-day MA of 12.21, and below the 200-day MA of 15.31, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 14.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LBRT.

Liberty Oilfield Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LBRT	75 Outperform	$1.90B	8.99	10.92%	2.67%	-9.32%	-48.26%
INVX	72 Outperform	$1.15B	5.57	15.64%	―	82.86%	―
HLX	68 Neutral	$892.20M	18.77	3.27%	―	-8.19%	―
AESI	67 Neutral	$1.55B	95.46	1.20%	7.75%	77.72%	-75.78%
Sector *	56 Neutral	C$4.11B	-0.17	0.41%	6.51%	5.45%	-66.94%
OIS	54 Neutral	$307.81M	44.52	0.95%	―	-12.15%	―
PUMP	49 Neutral	$545.83M	―	-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.