Liberty Energy Inc. Class A common stock (LBRT)

FairStock Score: 26/100 — RISKY

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.30, providing financial flexibility

Concerns

• Trades significantly above Graham Number ($16) with negative 100% margin of safety—limited downside protection

AI Analysis

Liberty Energy Inc. Class A common stock is a small-cap energy company valued at $5.2 billion. The business generates $4.0 billion in annual revenue with a 0.6% net margin. From a quality standpoint, Liberty shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.9 in the grey zone. On valuation, the stock is trading at a premium 36.3x earnings, with trades above its Graham Number with a negative 100% margin. Growth dynamics show revenue growing at 10.1% and profit growth of -73.6%. The 1.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 26/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 36x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer