SCHLUMBERGER LTD (SLB)
AN8068571086 - Common Stock
We assign a fundamental rating of 6 out of 10 to SLB. SLB was compared to 59 industry peers in the Energy Equipment & Services industry. While SLB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SLB may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make SLB a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year SLB was profitable.
SLB had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SLB reported negative net income in multiple years.
SLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SLB (9.00%) is better than 74.58% of its industry peers.
SLB's Return On Equity of 20.82% is amongst the best of the industry. SLB outperforms 88.14% of its industry peers.
With an excellent Return On Invested Capital value of 13.61%, SLB belongs to the best of the industry, outperforming 84.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SLB is in line with the industry average of 8.50%.
The last Return On Invested Capital (13.61%) for SLB is above the 3 year average (10.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 20.82% | ||
| ROIC | 13.61% |
ROA(3y)7.09%
ROA(5y)-4.3%
ROE(3y)17.6%
ROE(5y)-15.4%
ROIC(3y)10.34%
ROIC(5y)8.18%
1.3 Margins
SLB's Profit Margin of 12.44% is fine compared to the rest of the industry. SLB outperforms 77.97% of its industry peers.
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.
With a Gross Margin value of 20.42%, SLB is not doing good in the industry: 67.80% of the companies in the same industry are doing better.
SLB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.24% | ||
| PM (TTM) | 12.44% | ||
| GM | 20.42% |
OM growth 3Y33.24%
OM growth 5Y11.56%
PM growth 3YN/A
PM growth 5Y14.25%
GM growth 3Y21.65%
GM growth 5Y8.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SLB is creating some value.
Compared to 1 year ago, SLB has more shares outstanding
SLB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SLB has an improved debt to assets ratio.
2.2 Solvency
SLB has an Altman-Z score of 2.83. This is not the best score and indicates that SLB is in the grey zone with still only limited risk for bankruptcy at the moment.
SLB has a Altman-Z score of 2.83. This is in the better half of the industry: SLB outperforms 72.88% of its industry peers.
The Debt to FCF ratio of SLB is 2.43, which is a good value as it means it would take SLB, 2.43 years of fcf income to pay off 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.
A Debt/Equity ratio of 0.55 indicates that SLB is somewhat dependend on debt financing.
SLB has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: SLB underperforms 64.41% of its industry peers.
Although SLB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.69
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.48 indicates that SLB should not have too much problems paying its short term obligations.
SLB's Current ratio of 1.48 is on the low side compared to the rest of the industry. SLB is outperformed by 72.88% of its industry peers.
A Quick Ratio of 1.12 indicates that SLB should not have too much problems paying its short term obligations.
SLB's Quick ratio of 1.12 is on the low side compared to the rest of the industry. SLB is outperformed by 71.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
SLB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.96%, which is quite good.
The Earnings Per Share has been growing by 12.90% on average over the past years. This is quite good.
Looking at the last year, SLB shows a quite strong growth in Revenue. The Revenue has grown by 12.40% in the last year.
The Revenue has been growing slightly by 0.19% on average over the past years.
EPS 1Y (TTM)17.96%
EPS 3Y63.83%
EPS 5Y12.9%
EPS Q2Q%14.1%
Revenue 1Y (TTM)12.4%
Revenue growth 3Y11.97%
Revenue growth 5Y0.19%
Sales Q2Q%10.22%
3.2 Future
The Earnings Per Share is expected to grow by 10.29% on average over the next years. This is quite good.
Based on estimates for the next years, SLB will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y14.95%
EPS Next 2Y11.18%
EPS Next 3Y11.41%
EPS Next 5Y10.29%
Revenue Next Year9.55%
Revenue Next 2Y7.54%
Revenue Next 3Y6.84%
Revenue Next 5Y4.72%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SLB is valuated reasonably with a Price/Earnings ratio of 11.03.
Based on the Price/Earnings ratio, SLB is valued a bit cheaper than 77.97% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.42, SLB is valued rather cheaply.
The Price/Forward Earnings ratio is 10.00, which indicates a very decent valuation of SLB.
Based on the Price/Forward Earnings ratio, SLB is valued a bit cheaper than the industry average as 72.88% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.56. SLB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10 |
4.2 Price Multiples
SLB's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SLB is valued a bit cheaper than the industry average as 67.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| EV/EBITDA | 6.82 |
4.3 Compensation for Growth
SLB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SLB may justify a higher PE ratio.
PEG (NY)0.74
PEG (5Y)0.85
EPS Next 2Y11.18%
EPS Next 3Y11.41%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.48, SLB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, SLB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
The dividend of SLB decreases each year by -14.31%.
SLB has paid a dividend for at least 10 years, which is a reliable track record.
SLB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-14.31%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
33.50% of the earnings are spent on dividend by SLB. This is a low number and sustainable payout ratio.
DP33.5%
EPS Next 2Y11.18%
EPS Next 3Y11.41%
SCHLUMBERGER LTD
NYSE:SLB (12/20/2024, 2:52:09 PM)
36.945
+0.04 (+0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.88%
Inst Owner Change-0.91%
Ins Owners0.38%
Ins Owner Change-3.71%
Market Cap52.17B
Analysts84.12
Price Target58.57 (58.53%)
Short Float %2.9%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Dividend Growth(5Y)-14.31%
DP33.5%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.96%
Min EPS beat(2)-0.01%
Max EPS beat(2)1.93%
EPS beat(4)2
Avg EPS beat(4)0.78%
Min EPS beat(4)-0.61%
Max EPS beat(4)1.93%
EPS beat(8)6
Avg EPS beat(8)1.44%
EPS beat(12)10
Avg EPS beat(12)4.7%
EPS beat(16)14
Avg EPS beat(16)6.77%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)-0.31%
Revenue beat(4)0
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)-0.31%
Revenue beat(8)1
Avg Revenue beat(8)-0.57%
Revenue beat(12)5
Avg Revenue beat(12)0.67%
Revenue beat(16)8
Avg Revenue beat(16)0.79%
PT rev (1m)-5.02%
PT rev (3m)-11.58%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-9.71%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-2.62%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-6.59%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10 | ||
| P/S | 1.45 | ||
| P/FCF | 9.81 | ||
| P/OCF | 7.21 | ||
| P/B | 2.43 | ||
| P/tB | 13.62 | ||
| EV/EBITDA | 6.82 |
EPS(TTM)3.35
EY9.07%
EPS(NY)3.7
Fwd EY10%
FCF(TTM)3.77
FCFY10.19%
OCF(TTM)5.12
OCFY13.87%
SpS25.49
BVpS15.23
TBVpS2.71
PEG (NY)0.74
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 20.82% | ||
| ROCE | 16.73% | ||
| ROIC | 13.61% | ||
| ROICexc | 15.47% | ||
| ROICexgc | 33.8% | ||
| OM | 17.24% | ||
| PM (TTM) | 12.44% | ||
| GM | 20.42% | ||
| FCFM | 14.77% |
ROA(3y)7.09%
ROA(5y)-4.3%
ROE(3y)17.6%
ROE(5y)-15.4%
ROIC(3y)10.34%
ROIC(5y)8.18%
ROICexc(3y)12%
ROICexc(5y)9.32%
ROICexgc(3y)29.63%
ROICexgc(5y)22.67%
ROCE(3y)12.71%
ROCE(5y)10.06%
ROICexcg growth 3Y46.33%
ROICexcg growth 5Y22.07%
ROICexc growth 3Y46.48%
ROICexc growth 5Y25.36%
OM growth 3Y33.24%
OM growth 5Y11.56%
PM growth 3YN/A
PM growth 5Y14.25%
GM growth 3Y21.65%
GM growth 5Y8.66%
F-Score8
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 77.26% | ||
| Cap/Sales | 5.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.3% | ||
| Profit Quality | 118.76% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.83 |
F-Score8
WACC8.06%
ROIC/WACC1.69
Cap/Depr(3y)71.02%
Cap/Depr(5y)60.92%
Cap/Sales(3y)5.53%
Cap/Sales(5y)5.31%
Profit Quality(3y)119.82%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.96%
EPS 3Y63.83%
EPS 5Y12.9%
EPS Q2Q%14.1%
EPS Next Y14.95%
EPS Next 2Y11.18%
EPS Next 3Y11.41%
EPS Next 5Y10.29%
Revenue 1Y (TTM)12.4%
Revenue growth 3Y11.97%
Revenue growth 5Y0.19%
Sales Q2Q%10.22%
Revenue Next Year9.55%
Revenue Next 2Y7.54%
Revenue Next 3Y6.84%
Revenue Next 5Y4.72%
EBIT growth 1Y17.75%
EBIT growth 3Y49.19%
EBIT growth 5Y11.77%
EBIT Next Year56.01%
EBIT Next 3Y21.41%
EBIT Next 5Y14.15%
FCF growth 1Y108.96%
FCF growth 3Y36.98%
FCF growth 5Y5.75%
OCF growth 1Y79.15%
OCF growth 3Y31.12%
OCF growth 5Y3.04%