SCHLUMBERGER LTD (SLB) Stock Fundamental Analysis
NYSE:SLB - New York Stock Exchange, Inc. - AN8068571086 - Common Stock
SLB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 58 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of SLB get a neutral evaluation. Nothing too spectacular is happening here. SLB has a decent growth rate and is not valued too expensively.
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.
SLB had positive earnings in 4 of the past 5 years.
SLB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.00%, SLB is doing good in the industry, outperforming 75.86% of the companies in the same industry.
SLB has a Return On Equity of 20.82%. This is amongst the best in the industry. SLB outperforms 87.93% of its industry peers.
The Return On Invested Capital of SLB (13.53%) is better than 84.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 20.82% | ||
| ROIC | 13.53% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SLB (12.44%) is better than 79.31% of its industry peers.
SLB's Profit Margin has improved in the last couple of years.
SLB's Operating Margin of 17.24% is fine compared to the rest of the industry. SLB outperforms 77.59% of its industry peers.
SLB's Operating Margin has improved in the last couple of years.
SLB has a worse Gross Margin (20.42%) than 67.24% 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 3Y13.07%
OM growth 5Y13.77%
PM growth 3Y14.43%
PM growth 5YN/A
GM growth 3Y8.82%
GM growth 5Y10%
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.
SLB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SLB has an Altman-Z score of 3.03. This indicates that SLB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SLB (3.03) is better than 75.86% 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.
With a decent Debt to FCF ratio value of 2.43, SLB is doing good in the industry, outperforming 70.69% 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.
With a Debt to Equity ratio value of 0.55, SLB is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
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 | 3.03 |
ROIC/WACC1.61
WACC8.42%
2.3 Liquidity
SLB has a Current Ratio of 1.48. This is a normal value and indicates that SLB is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.48, SLB is not doing good in the industry: 74.14% of the companies in the same industry are doing better.
SLB has a Quick Ratio of 1.12. This is a normal value and indicates that SLB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.12, SLB is doing worse than 72.41% of the companies in the same industry.
| 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 14.05%, which is quite good.
Measured over the past years, SLB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.33% on average per year.
SLB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.52%.
Measured over the past years, SLB shows a small growth in Revenue. The Revenue has been growing by 1.97% on average per year.
EPS 1Y (TTM)14.05%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%6.98%
Revenue 1Y (TTM)9.52%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%3.27%
3.2 Future
Based on estimates for the next years, SLB will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.02% on average per year.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y7.84%
EPS Next 2Y9.53%
EPS Next 3Y5.81%
EPS Next 5Y9.02%
Revenue Next Year2.9%
Revenue Next 2Y4.26%
Revenue Next 3Y3.44%
Revenue Next 5Y3.6%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 12.55, SLB is valued correctly.
Based on the Price/Earnings ratio, SLB is valued a bit cheaper than 74.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of SLB to the average of the S&P500 Index (28.29), we can say SLB is valued rather cheaply.
A Price/Forward Earnings ratio of 11.64 indicates a reasonable valuation of SLB.
67.24% of the companies in the same industry are more expensive than SLB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, SLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SLB is on the same level as its industry peers.
SLB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SLB is cheaper than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.37 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SLB may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)0.68
EPS Next 2Y9.53%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.28, SLB pays a better dividend. On top of this SLB pays more dividend than 82.76% of the companies listed in the same industry.
SLB's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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 2Y9.53%
EPS Next 3Y5.81%
SCHLUMBERGER LTD
NYSE:SLB (1/22/2025, 11:43:10 AM)
42.8
-0.94 (-2.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.4%
Inst Owner Change-0.03%
Ins Owners0.19%
Ins Owner Change-3.74%
Market Cap60.44B
Analysts82.86
Price Target56.48 (31.96%)
Short Float %3.54%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend0.93
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)-3.57%
PT rev (3m)-14.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.59%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 11.64 | ||
| P/S | 1.68 | ||
| P/FCF | 11.37 | ||
| P/OCF | 8.35 | ||
| P/B | 2.81 | ||
| P/tB | 15.78 | ||
| EV/EBITDA | 7.93 |
EPS(TTM)3.41
EY7.97%
EPS(NY)3.68
Fwd EY8.59%
FCF(TTM)3.77
FCFY8.8%
OCF(TTM)5.12
OCFY11.97%
SpS25.49
BVpS15.23
TBVpS2.71
PEG (NY)1.6
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 20.82% | ||
| ROCE | 16.73% | ||
| ROIC | 13.53% | ||
| ROICexc | 15.38% | ||
| ROICexgc | 33.58% | ||
| OM | 17.24% | ||
| PM (TTM) | 12.44% | ||
| GM | 20.42% | ||
| FCFM | 14.77% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y13.07%
OM growth 5Y13.77%
PM growth 3Y14.43%
PM growth 5YN/A
GM growth 3Y8.82%
GM growth 5Y10%
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 | 3.03 |
F-Score8
WACC8.42%
ROIC/WACC1.61
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.05%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%6.98%
EPS Next Y7.84%
EPS Next 2Y9.53%
EPS Next 3Y5.81%
EPS Next 5Y9.02%
Revenue 1Y (TTM)9.52%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%3.27%
Revenue Next Year2.9%
Revenue Next 2Y4.26%
Revenue Next 3Y3.44%
Revenue Next 5Y3.6%
EBIT growth 1Y17.75%
EBIT growth 3Y31.77%
EBIT growth 5Y16.01%
EBIT Next Year42.53%
EBIT Next 3Y15.69%
EBIT Next 5Y12.31%
FCF growth 1Y60.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.34%
OCF growth 3YN/A
OCF growth 5YN/A