NYSE:SLB is an undervalued gem with solid fundamentals.

Take a closer look at SCHLUMBERGER LTD (NYSE:SLB), a remarkable value stock uncovered by our stock screener. NYSE:SLB excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Understanding NYSE:SLB's Valuation Score

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:SLB has received a 7 out of 10:

• With a Price/Earnings ratio of 11.26, the valuation of SLB can be described as very reasonable.
• 77.97% of the companies in the same industry are more expensive than SLB, based on the Price/Earnings ratio.
• When comparing the Price/Earnings ratio of SLB to the average of the S&P500 Index (27.54), we can say SLB is valued rather cheaply.
• The Price/Forward Earnings ratio is 10.26, which indicates a very decent valuation of SLB.
• 72.88% of the companies in the same industry are more expensive than SLB, based on the Price/Forward Earnings ratio.
• When comparing the Price/Forward Earnings ratio of SLB to the average of the S&P500 Index (23.99), we can say SLB is valued rather cheaply.
• 67.80% of the companies in the same industry are more expensive than SLB, based on the Price/Free Cash Flow ratio.
• SLB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• SLB has a very decent profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:SLB scores a 7 out of 10:

• SLB's Return On Assets of 9.00% is fine compared to the rest of the industry. SLB outperforms 74.58% of its industry peers.
• With an excellent Return On Equity value of 20.82%, SLB belongs to the best of the industry, outperforming 88.14% of the companies in the same industry.
• SLB has a better Return On Invested Capital (13.61%) than 84.75% of its industry peers.
• The 3 year average ROIC (10.34%) for SLB is below the current ROIC(13.61%), indicating increased profibility in the last year.
• With a decent Profit Margin value of 12.44%, SLB is doing good in the industry, outperforming 77.97% of the companies in the same industry.
• In the last couple of years the Profit Margin of SLB has grown nicely.
• Looking at the Operating Margin, with a value of 17.24%, SLB is in the better half of the industry, outperforming 77.97% of the companies in the same industry.
• In the last couple of years the Operating Margin of SLB has grown nicely.
• In the last couple of years the Gross Margin of SLB has grown nicely.

Assessing Health Metrics for NYSE:SLB

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:SLB scores a 5 out of 10:

• SLB has a better Altman-Z score (2.85) than 72.88% of its industry peers.
• SLB has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as SLB would need 2.43 years to pay back of all of its debts.
• SLB's Debt to FCF ratio of 2.43 is fine compared to the rest of the industry. SLB outperforms 66.10% of its industry peers.
• Even though the debt/equity ratio score it not favorable for SLB, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Growth Assessment of NYSE:SLB

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:SLB, the assigned 5 reflects its growth potential:

• The Earnings Per Share has grown by an nice 17.96% over the past year.
• The Earnings Per Share has been growing by 12.90% on average over the past years. This is quite good.
• SLB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.40%.
• Based on estimates for the next years, SLB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.29% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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For an up to date full fundamental analysis you can check the fundamental report of SLB

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.