Liberty Energy Profitability Analysis
| LBYE Stock | USD 0.0001 0.00 0.00% |
Net Loss | First Reported 2010-12-31 | Previous Quarter -577.9 K | Current Value -606.8 K | Quarterly Volatility 121.1 K |
For Liberty Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Liberty Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Liberty Energy Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Liberty Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Liberty Energy Corp over time as well as its relative position and ranking within its peers.
Liberty |
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.
Please note, there is a significant difference between Liberty Energy's value and its price as these two are different measures arrived at by different 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.
Liberty Energy Corp Operating Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Liberty Energy's current stock value. Our valuation model uses many indicators to compare Liberty Energy value to that of its competitors to determine the firm's financial worth. Liberty Energy Corp is rated below average in return on asset category among its peers. It is rated below average in operating margin category among its peers . At present, Liberty Energy's Operating Profit Margin is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Liberty Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Liberty Operating Margin vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Liberty Energy |
| = | -0.9 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Liberty Energy |
| = | (50.29) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Liberty Operating Margin Comparison
Liberty Energy is currently under evaluation in operating margin category among its peers.
Liberty Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Liberty Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Liberty Energy will eventually generate negative long term returns. The profitability progress is the general direction of Liberty Energy's change in net profit over the period of time. It can combine multiple indicators of Liberty Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | -576.6 K | -605.5 K | |
| Net Loss | -577.9 K | -606.8 K | |
| Income Before Tax | -577.9 K | -606.8 K | |
| Total Other Income Expense Net | -1.6 K | -1.7 K | |
| Net Loss | -577.9 K | -606.8 K | |
| Net Loss | -577.9 K | -606.8 K | |
| Change To Netincome | 63 K | 59.9 K | |
| Net Loss | (0.01) | (0.01) | |
| Income Quality | 0.08 | 0.08 |
Liberty Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Liberty Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Liberty Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Liberty Energy's important profitability drivers and their relationship over time.
Use Liberty Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Liberty Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Liberty Energy will appreciate offsetting losses from the drop in the long position's value.Liberty Energy Pair Trading
Liberty Energy Corp Pair Trading Analysis
The ability to find closely correlated positions to Liberty Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Liberty Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Liberty Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Liberty Energy Corp to buy it.
The correlation of Liberty Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Liberty Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Liberty Energy Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Liberty Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Liberty Energy position
In addition to having Liberty Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Correlation Analysis. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Liberty Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Liberty Energy Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Liberty Energy's income statement, its balance sheet, and the statement of cash flows.