Liberty Energy Inc (LBRT, Financial) has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $3.74 billion, the stock is trading at $22.53. Over the past week, the stock has seen a decline of 4.74%, yet when looking at the broader picture, Liberty Energy has gained an impressive 28.21% over the past three months. According to the GF Value, the stock is currently Fairly Valued at $22.46, a slight adjustment from its previous assessment of Modestly Undervalued when the GF Value was $24.06. This recent performance suggests a volatile yet positive trend for the company's stock value.
Introduction to Liberty Energy Inc
Liberty Energy Inc, operating within the Oil & Gas industry, is a key player in providing hydraulic fracturing services across North America. The company's significant growth trajectory was bolstered by the strategic acquisition of Schlumberger's OneStim business in 2020, which positioned Liberty as one of the largest pressure pumpers on the continent. This acquisition not only expanded their service offerings but also included wireline operations, two Permian frac sand mines, and a suite of advanced technologies. 
Assessing Liberty Energy's Profitability
Liberty Energy's financial health is reflected in its Profitability Rank of 6/10, which is commendable within the industry. The company's Operating Margin stands at 15.92%, surpassing the industry average and indicating efficient operational management. Furthermore, the Return on Equity (ROE) is an impressive 33.16%, and the Return on Assets (ROA) at 19.34% demonstrates the company's effective use of its assets. The Return on Invested Capital (ROIC) of 26.19% is indicative of strong cash flow generation. Over the past decade, Liberty Energy has maintained profitability for four years, showcasing its resilience and financial stability. 
Growth Prospects of Liberty Energy
The company's Growth Rank is an impressive 8/10, signaling strong potential for future expansion. Liberty Energy's 3-Year Revenue Growth Rate per Share stands at 33.40%, significantly higher than many of its peers. The 5-Year Revenue Growth Rate per Share is also positive at 7.70%. Looking ahead, the Total Revenue Growth Rate is estimated at 3.90% for the next 3 to 5 years, while the EPS without NRI Growth Rate is projected at 5.75%, both of which are favorable when compared to industry counterparts. 
Notable Shareholders in Liberty Energy
Liberty Energy's shareholder base includes several prominent investors. Steven Cohen (Trades, Portfolio) leads the pack with 560,536 shares, representing 0.34% of the company. Following closely is HOTCHKIS & WILEY, holding 440,360 shares, which equates to 0.26% ownership. Jim Simons (Trades, Portfolio) also has a significant stake with 298,500 shares, amounting to 0.18% of Liberty Energy. These holdings reflect the confidence and interest of savvy investors in the company's performance and future prospects.
Competitive Landscape
Liberty Energy operates in a competitive environment, with key players such as Cactus Inc (WHD, Financial) with a market cap of $3.27 billion, Tidewater Inc (TDW, Financial) valued at $4.75 billion, and USA Compression Partners LP (USAC, Financial) with a market cap of $2.58 billion. These companies, along with Liberty Energy, form a dynamic competitive landscape within the Oil & Gas industry, each vying for market share and technological advancements.
Conclusion
In conclusion, Liberty Energy Inc's current market position is robust, with a fair valuation and a positive outlook on profitability and growth. The company's recent stock performance, despite short-term volatility, reflects investor confidence in its strategic acquisitions and operational efficiency. With a strong profitability rank and promising growth prospects, Liberty Energy is well-positioned to navigate the competitive landscape of the Oil & Gas industry. The significant holdings by notable investors further underscore the potential that Liberty Energy holds for value creation in the long term.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
