Liberty Oilfield Services Inc. provides hydraulic fracturing services to onshore oil and natural gas exploration and production companies in North America. It has 13 active fleets. The company provides its services primarily in the Permian Basin, the Denver-Julesburg Basin, the Williston Basin, and the Powder River Basin. Liberty Oilfield Services Inc. was founded in 2011 and is based in Denver, Colorado.
LBRT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for LBRT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Liberty Oilfield Services Inc ranked in the 82th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 719% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for LBRT, they are:
Its compound free cash flow growth rate, as measured over the past 1.75 years, is 0.51% -- higher than 80.44% of stocks in our DCF forecasting set.
Liberty Oilfield Services Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.91. This coverage rate is greater than that of just 14.9% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Energy), Liberty Oilfield Services Inc has a reliance on debt greater than only 18.2% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BOOM, BKEP, TOT, PUMP, and CHX can be thought of as valuation peers to LBRT, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
LBRT May Continue To Plod Source Liberty Oilfield Services (LBRT) has a long and tiring year ahead. The steep deterioration in the energy demand has reduced the company's staffed frack fleet by 50% compared to the start of the year. Management does not see the fleet strength or pricing improving...
Badsha Chowdhury on Seeking Alpha | August 3, 2020
Introduction Energy Recovery Inc ("ERII") is the US based 400 million market cap. company with no debt, USD100 million in cash, 100% market share in their segment, has not lost a tender in five years, 72% margins, and 18% compounded revenue growth and further revenue growth opportunities by implementing its...
Liberty Oilfield Services Inc. (NYSE:LBRT) announced today that it will release its financial results for the second quarter 2020 on Tuesday, July 28, 2020 after the market closes. Following the release, the Company will host a conference call to discuss the results at 8:00AM Mountain Time (10:00AM Eastern Time) on Wednesday, July 29, 2020. Presenting the Company’s results will be Chris Wright, Chief Executive Officer, Ron Gusek, President and Michael Stock, Chief Financial Officer.
How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]