Liberty Energy Inc (LBRT) Stock Analysis
Verdict: AVOID
Severe margin decay and negative free cash flow are outweighing technical earnings beats as the market prices in a shale activity slowdown.
Investment score: 38/100
Analysis as of
Is Liberty Energy Inc stock worth reviewing? The TradeMates thesis
Despite high-percentage earnings surprises, Liberty Energy is facing a fundamental crisis with net margins at 2.9% and negative free cash flow yield. Aggressive insider selling and recent 20%+ single-day drops signal that a bottom has not yet been established.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 25/100 (weight 15%)
- Technical Momentum: 15/100 (weight 15%)
- Earnings Quality: 60/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 45/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Liberty Energy Inc opportunities and risks
What speaks for LBRT
- Vertical Integration via Sand Mines
What speaks against LBRT
- Aggressive Margin Compression
Peers and competitors
- WHD
- WBI
- SEI
- USAC
- TDW
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LBRT | 23.7x | 0.7x | 6.4x | 12.9% | 2.9% | -10.9% |
| WHD | 50.0x | 3.0x | 11.4x | 37.9% | 6.0% | 8.4% |
| WBI | 90.8x | 2.9x | 6.1x | 24.5% | 2.9% | -8.6% |
| SEI | 52.7x | 4.6x | 20.9x | 34.0% | 6.7% | -18.4% |
| USAC | 26.4x | 3.5x | 10.7x | 51.6% | 11.9% | 8.1% |
| TDW | 12.2x | 2.7x | 8.0x | 29.3% | 22.2% | 7.7% |
| Peer median | 50.0x | 3.0x | 10.7x | 34.0% | 6.7% | 7.7% |
Frequently asked questions about Liberty Energy Inc (LBRT)
Is LBRT stock a good investment?
The TradeMates model rates Liberty Energy Inc as AVOID with an investment score of 38/100. Despite high-percentage earnings surprises, Liberty Energy is facing a fundamental crisis with net margins at 2.9% and negative free cash flow yield. Aggressive insider selling and recent 20%+ single-day drops signal that a bottom has not yet been established. This is algorithmic model output, not personal investment advice.
Is LBRT stock a buy?
The TradeMates model verdict for LBRT is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.