Is Liberty Energy Stock a Good Investment?
Liberty Energy Investment Advice | LBYE |
- Examine Liberty Energy's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Liberty Energy's leadership team and their track record. Good management can help Liberty Energy navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Oil & Gas Exploration & Production space and any emerging trends that could impact Liberty Energy's business and its evolving consumer preferences.
- Compare Liberty Energy's performance and market position to its competitors. Analyze how Liberty Energy is positioned in terms of product offerings, innovation, and market share.
- Check if Liberty Energy pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Liberty Energy's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Liberty Energy Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Liberty Energy Corp is a good investment.
Sell | Buy |
Strong Sell
Market Performance | OK | Details | |
Volatility | Out of control | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Liberty Energy Stock
Researching Liberty Energy's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company had not issued any dividends in recent years.
To determine if Liberty Energy is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Liberty Energy's research are outlined below:
| Liberty Energy Corp is way too risky over 90 days horizon | |
| Liberty Energy Corp has some characteristics of a very speculative penny stock | |
| Liberty Energy Corp appears to be risky and price may revert if volatility continues | |
| Liberty Energy Corp currently holds 20.32 K in liabilities with Debt to Equity (D/E) ratio of 6.03, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Liberty Energy Corp has a current ratio of 0.01, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Liberty Energy's use of debt, we should always consider it together with its cash and equity. | |
| The entity reported the previous year's revenue of 10.59 K. Net Loss for the year was (642.11 K) with profit before overhead, payroll, taxes, and interest of 10.59 K. | |
| Liberty Energy Corp currently holds about 59 in cash with (44.34 K) of positive cash flow from operations. | |
| Liberty Energy Corp has a frail financial position based on the latest SEC disclosures | |
| Latest headline from gurufocus.com: Insider Sell Christopher Wright Sells 32,000 Shares of Liberty Energy Inc |
Liberty Energy's market capitalization trends
The company currently falls under 'Nano-Cap' category with a current market capitalization of 245.11 K.Market Cap |
|
Liberty Energy's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (1.40) | (1.47) | |
| Return On Capital Employed | (9.23) | (8.77) | |
| Return On Assets | (1.40) | (1.47) | |
| Return On Equity | 2.34 | 2.45 |
Determining Liberty Energy's profitability involves analyzing its financial statements and using various financial metrics to determine if Liberty Energy is a good buy. For example, gross profit margin measures Liberty Energy's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Liberty Energy's profitability and make more informed investment decisions.
Please note, the presentation of Liberty Energy's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Liberty Energy's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Liberty Energy's management manipulating its earnings.
Evaluate Liberty Energy's management efficiency
Liberty Energy Corp has return on total asset (ROA) of (0.8965) % which means that it has lost $0.8965 on every $100 spent on assets. This is way below average. Liberty Energy's management efficiency ratios could be used to measure how well Liberty Energy manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Equity is expected to grow to 2.45, whereas Return On Tangible Assets are forecasted to decline to (1.47). At present, Liberty Energy's Debt To Assets are projected to increase slightly based on the last few years of reporting. The current year's Fixed Asset Turnover is expected to grow to 0.03, whereas Net Tangible Assets are projected to grow to (312.9 K).| Last Reported | Projected for Next Year | ||
| Enterprise Value Over EBITDA | (2.60) | (2.73) | |
| Price Book Value Ratio | (5.13) | (4.87) | |
| Enterprise Value Multiple | (2.60) | (2.73) | |
| Price Fair Value | (5.13) | (4.87) | |
| Enterprise Value | 2 M | 1.9 M |
The strategic vision of Liberty Energy Corp management plays a critical role in its financial performance. By evaluating this vision, we provide insights into the stock's growth potential.
Beta 44.992 |
Basic technical analysis of Liberty Stock
As of the 16th of December 2024, Liberty Energy secures the Mean Deviation of 134.34, standard deviation of 554.23, and Risk Adjusted Performance of 0.0972. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Liberty Energy Corp, as well as the relationship between them. Please verify Liberty Energy Corp market risk adjusted performance, variance, as well as the relationship between the Variance and skewness to decide if Liberty Energy Corp is priced some-what accurately, providing market reflects its recent price of 1.0E-4 per share. As Liberty Energy Corp appears to be a penny stock we also strongly suggest to check its information ratio numbers.Liberty Energy's Outstanding Corporate Bonds
Liberty Energy issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Liberty Energy Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Liberty bonds can be classified according to their maturity, which is the date when Liberty Energy Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| MPLX LP 4875 Corp BondUS55336VAG59 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View |
Understand Liberty Energy's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Liberty Energy's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0972 | |||
| Market Risk Adjusted Performance | 109.77 | |||
| Mean Deviation | 134.34 | |||
| Coefficient Of Variation | 830.93 | |||
| Standard Deviation | 554.23 | |||
| Variance | 307168.41 | |||
| Information Ratio | 0.1202 | |||
| Jensen Alpha | 66.63 | |||
| Total Risk Alpha | (2.19) | |||
| Treynor Ratio | 109.76 | |||
| Maximum Drawdown | 4597.83 | |||
| Skewness | 8.12 | |||
| Kurtosis | 65.93 |
| Risk Adjusted Performance | 0.0972 | |||
| Market Risk Adjusted Performance | 109.77 | |||
| Mean Deviation | 134.34 | |||
| Coefficient Of Variation | 830.93 | |||
| Standard Deviation | 554.23 | |||
| Variance | 307168.41 | |||
| Information Ratio | 0.1202 | |||
| Jensen Alpha | 66.63 | |||
| Total Risk Alpha | (2.19) | |||
| Treynor Ratio | 109.76 | |||
| Maximum Drawdown | 4597.83 | |||
| Skewness | 8.12 | |||
| Kurtosis | 65.93 |
Consider Liberty Energy's intraday indicators
Liberty Energy intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Liberty Energy stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 1.0E-4 | |||
| Day Typical Price | 1.0E-4 |
Liberty Stock media impact
Far too much social signal, news, headlines, and media speculation about Liberty Energy that are available to investors today. That information is available publicly through Liberty media outlets and privately through word of mouth or via Liberty internal channels. However, regardless of the origin, that massive amount of Liberty data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Liberty Energy news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Liberty Energy relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Liberty Energy's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Liberty Energy alpha.
Liberty Energy Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Liberty Energy can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
When determining whether Liberty Energy Corp is a strong investment it is important to analyze Liberty Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Liberty Energy's future performance. For an informed investment choice regarding Liberty Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Liberty Energy Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in manufacturing. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Liberty Energy. If investors know Liberty will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Liberty Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Return On Assets (0.90) |
The market value of Liberty Energy Corp is measured differently than its book value, which is the value of Liberty that is recorded on the company's balance sheet. Investors also form their own opinion of Liberty Energy's value that differs from its market value or its book value, called intrinsic value, which is Liberty Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Liberty Energy's market value can be influenced by many factors that don't directly affect Liberty Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Liberty Energy's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Liberty Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Liberty Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.