Liberty Energy Inc. (NYSE: LBRT)

Sector: Energy Industry: Oil & Gas Equipment & Services CIK: 0001694028
Market Cap 4.34 Bn
P/B 2.09
P/E 29.32
P/S 1.08
ROIC (Qtr) 2.16
Div Yield % 1.24
Rev 1y % (Qtr) 10.09
Total Debt (Qtr) 618.29 Mn
Debt/Equity (Qtr) 0.30
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About

Liberty Energy Inc., also known as LBRT, is a leading integrated energy services and technology company based in North America. The company specializes in providing hydraulic services and related technologies to onshore oil and natural gas exploration and production (E&P) companies. Liberty Energy's primary business activities include hydraulic fracturing services, wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, and related goods and technologies. The company's...

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Investment thesis

Bull case

  • Strong operating cash flow of 609.60M provides robust 0.99x coverage of total debt 618.29M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 609.60M provides exceptional 15.12x coverage of interest expenses 40.31M, showing strong debt service capability.
  • Operating cash flow of 609.60M provides strong 14.54x coverage of stock compensation 41.92M, indicating sustainable incentive practices.
  • Strong tangible asset base of 3.56B provides 5.76x coverage of total debt 618.29M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 609.60M provides 2.46x coverage of SG&A expenses 247.44M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 609.60M barely covers its investment activities of (435.04M), with a coverage ratio of -1.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 27.55M against inventory of 188.12M, the 0.15 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 609.60M provides thin coverage of dividend payments of (54.48M) with a -11.19 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 27.55M provide limited coverage of acquisition spending of (15.21M), which is -1.81x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 605.37M relative to inventory of 188.12M (3.22 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Related and Nonrelated Parties Breakdown of Revenue (2025)

Peer comparison

Companies in the Oil & Gas Equipment & Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SLB Slb Limited/Nv 59.56 Bn 20.77 2.67 11.64 Bn
2 BKR Baker Hughes Co 59.13 Bn 22.85 2.13 6.09 Bn
3 FTI TechnipFMC plc 28.99 Bn 127.65 1.96 1.34 Bn
4 HAL Halliburton Co 28.83 Bn 22.47 1.30 8.13 Bn
5 WFRD Weatherford International plc 7.39 Bn 17.15 1.50 1.64 Bn
6 NOV NOV Inc. 7.09 Bn 48.90 0.81 2.34 Bn
7 VAL Valaris Ltd 6.32 Bn 15.83 2.61 1.09 Bn
8 KGS Kodiak Gas Services, Inc. 4.56 Bn 91.00 3.58 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.39 1.17
EV to Cash from Ops. EV/CFO 8.12 -3.30
EV to Debt EV to Debt 8.00 10.99
EV to EBIT EV/EBIT 21.01 4.49
EV to EBITDA EV/EBITDA 8.63 6.54
EV to Free Cash Flow [EV/FCF] EV/FCF 127.53 31.31
EV to Market Cap EV to Market Cap 1.14 1.36
EV to Revenue EV/Rev 1.24 2.02
Price to Book Value [P/B] P/B 2.09 1.73
Price to Earnings [P/E] P/E 29.32 20.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.71 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 36.30 5.49
Dividend per Basic Share Div per Share (Qtr) 0.33 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 137.50 6.68
Interest Coverage Int. cover (Qtr) 5.84 -10.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 8.97 -37.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 37.88 1,334.16
Dividend Growth (1y) % Div 1y % (Qtr) 13.79 4.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -47.78 -12.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -35.94 19.66
EBIT Growth (1y) % EBIT 1y % (Qtr) -45.98 -26.68
EBT Growth (1y) % EBT 1y % (Qtr) -51.60 39.97
EPS Growth (1y) % EPS 1y % (Qtr) -52.36 27.30
FCF Growth (1y) % FCF 1y % (Qtr) -80.82 -867.31
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -24.82 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.13 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.05 0.10
Cash Ratio Cash Ratio (Qtr) 0.04 0.62
Current Ratio Curr Ratio (Qtr) 1.22 2.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.30 0.88
Interest Cover Ratio Int Coverage (Qtr) 5.84 -10.19
Times Interest Earned Times Interest Earned (Qtr) 5.84 -10.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.40 16.47
EBIT Margin % EBIT Margin % (Qtr) 5.88 -0.62
EBT Margin % EBT Margin % (Qtr) 4.87 4.39
Gross Margin % Gross Margin % (Qtr) 20.90 30.41
Net Profit Margin % Net Margin % (Qtr) 3.70 2.67