SCHLUMBERGER LTD (SLB)
AN8068571086 - Common Stock
SLB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Energy Equipment & Services industry. While SLB has a great profitability rating, there are some minor concerns on its financial health. SLB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SLB had positive earnings in the past year.
In the past year SLB had a positive cash flow from operations.
In multiple years SLB reported negative net income over the last 5 years.
Each year in the past 5 years SLB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SLB (9.00%) is better than 76.67% of its industry peers.
SLB has a Return On Equity of 20.82%. This is amongst the best in the industry. SLB outperforms 90.00% of its industry peers.
SLB has a Return On Invested Capital of 13.61%. This is amongst the best in the industry. SLB outperforms 85.00% of its industry peers.
SLB had an Average Return On Invested Capital over the past 3 years of 10.34%. This is above the industry average of 8.32%.
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
Looking at the Profit Margin, with a value of 12.44%, SLB is in the better half of the industry, outperforming 80.00% 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 78.33% of the companies in the same industry.
In the last couple of years the Operating Margin of SLB has grown nicely.
SLB's Gross Margin of 20.42% is on the low side compared to the rest of the industry. SLB is outperformed by 65.00% of its industry peers.
In the last couple of years the Gross Margin of SLB has grown nicely.
| 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
SLB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SLB has been increased compared to 1 year ago.
SLB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SLB has been reduced compared to a year ago.
2.2 Solvency
SLB has an Altman-Z score of 3.02. This indicates that SLB is financially healthy and has little risk of bankruptcy at the moment.
SLB has a better Altman-Z score (3.02) than 71.67% 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.
Looking at the Debt to FCF ratio, with a value of 2.43, SLB is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
SLB has a Debt/Equity ratio of 0.55. This is a neutral value indicating SLB is somewhat dependend on debt financing.
SLB's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. SLB is outperformed by 65.00% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.67
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.48 indicates that SLB should not have too much problems paying its short term obligations.
SLB has a Current ratio of 1.48. This is in the lower half of the industry: SLB underperforms 73.33% 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 has a worse Quick ratio (1.12) than 70.00% 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.
The Revenue has grown by 12.40% in the past year. This is quite good.
SLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.19% yearly.
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
SLB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.23% yearly.
SLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.97% yearly.
EPS Next Y14.93%
EPS Next 2Y11.31%
EPS Next 3Y11.74%
EPS Next 5Y12.23%
Revenue Next Year9.62%
Revenue Next 2Y7.5%
Revenue Next 3Y6.87%
Revenue Next 5Y6.97%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
A Price/Earnings ratio of 12.98 indicates a correct valuation of SLB.
Based on the Price/Earnings ratio, SLB is valued a bit cheaper than 75.00% of the companies in the same industry.
SLB is valuated cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.74, which indicates a very decent valuation of SLB.
SLB's Price/Forward Earnings is on the same level as the industry average.
SLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 11.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SLB.
63.33% of the companies in the same industry are more expensive than SLB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 7.84 |
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.
SLB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)1.01
EPS Next 2Y11.31%
EPS Next 3Y11.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, SLB has a reasonable but not impressive dividend return.
SLB's Dividend Yield is a higher than the industry average which is at 3.51.
SLB's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)-14.31%
Div Incr Years2
Div Non Decr Years2
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 2Y11.31%
EPS Next 3Y11.74%
SCHLUMBERGER LTD
NYSE:SLB (11/18/2024, 8:04:00 PM)
After market: 43.47 -0.02 (-0.05%)43.49
+0.31 (+0.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap61.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 11.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.87
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 20.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.24% | ||
| PM (TTM) | 12.44% | ||
| GM | 20.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.96%
EPS 3Y63.83%
EPS 5Y
EPS Q2Q%
EPS Next Y14.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.4%
Revenue growth 3Y11.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y