SCHLUMBERGER LTD (SLB) Stock Fundamental Analysis
NYSE:SLB - New York Stock Exchange, Inc. - AN8068571086 - Common Stock - Currency: USD
Overall SLB gets a fundamental rating of 6 out of 10. We evaluated SLB against 62 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 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.
In the past 5 years SLB always reported a positive cash flow from operatings.
1.2 Ratios
SLB has a better Return On Assets (9.12%) than 79.03% of its industry peers.
Looking at the Return On Equity, with a value of 21.11%, SLB belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
SLB has a Return On Invested Capital of 14.25%. This is amongst the best in the industry. SLB outperforms 88.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SLB is above the industry average of 8.11%.
The 3 year average ROIC (12.63%) for SLB is below the current ROIC(14.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.12% | ||
| ROE | 21.11% | ||
| ROIC | 14.25% |
ROA(3y)8.62%
ROA(5y)1.12%
ROE(3y)20.46%
ROE(5y)-2.64%
ROIC(3y)12.63%
ROIC(5y)9.85%
1.3 Margins
SLB has a better Profit Margin (12.29%) than 79.03% of its industry peers.
SLB's Profit Margin has improved in the last couple of years.
The Operating Margin of SLB (17.55%) is better than 80.65% of its industry peers.
In the last couple of years the Operating Margin of SLB has grown nicely.
SLB's Gross Margin of 20.68% is on the low side compared to the rest of the industry. SLB is outperformed by 67.74% of its industry peers.
In the last couple of years the Gross Margin of SLB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.55% | ||
| PM (TTM) | 12.29% | ||
| GM | 20.68% |
OM growth 3Y13.33%
OM growth 5Y13.92%
PM growth 3Y14.43%
PM growth 5YN/A
GM growth 3Y9.03%
GM growth 5Y10.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SLB is still creating some value.
SLB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SLB has more shares outstanding
Compared to 1 year ago, SLB has an improved debt to assets ratio.
2.2 Solvency
SLB has an Altman-Z score of 2.80. 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 better Altman-Z score (2.80) than 72.58% of its industry peers.
The Debt to FCF ratio of SLB is 2.58, which is a good value as it means it would take SLB, 2.58 years of fcf income to pay off all of its debts.
SLB has a Debt to FCF ratio of 2.58. This is in the better half of the industry: SLB outperforms 66.13% of its industry peers.
SLB has a Debt/Equity ratio of 0.52. This is a neutral value indicating SLB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, SLB perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.65
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.45 indicates that SLB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.45, SLB is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
SLB has a Quick Ratio of 1.11. This is a normal value and indicates that SLB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SLB (1.11) is worse than 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.05% over the past year.
SLB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.33% yearly.
The Revenue has grown by 9.52% in the past year. This is quite good.
The Revenue has been growing slightly by 1.97% on average over the past years.
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
SLB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.85% yearly.
SLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.87% yearly.
EPS Next Y0.29%
EPS Next 2Y4.38%
EPS Next 3Y6.12%
EPS Next 5Y1.85%
Revenue Next Year1.52%
Revenue Next 2Y2.7%
Revenue Next 3Y2.9%
Revenue Next 5Y0.87%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.15, the valuation of SLB can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SLB indicates a somewhat cheap valuation: SLB is cheaper than 70.97% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.33, SLB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.12, the valuation of SLB can be described as reasonable.
Based on the Price/Forward Earnings ratio, SLB is valued a bit cheaper than 72.58% of the companies in the same industry.
SLB is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLB is valued a bit more expensive than the industry average as 64.52% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as SLB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SLB does not grow enough to justify the current Price/Earnings ratio.
SLB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)34.43
PEG (5Y)0.55
EPS Next 2Y4.38%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 3.25%.
Compared to an average industry Dividend Yield of 4.10, SLB pays a better dividend. On top of this SLB pays more dividend than 83.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, SLB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
The dividend of SLB decreases each year by -11.53%.
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)-11.53%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SLB pays out 34.36% of its income as dividend. This is a sustainable payout ratio.
DP34.36%
EPS Next 2Y4.38%
EPS Next 3Y6.12%
34.61
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.44%
Inst Owner Change0.21%
Ins Owners0.2%
Ins Owner Change3.69%
Market Cap47.06B
Analysts81.18
Price Target53.6 (54.87%)
Short Float %5.71%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend1.08
Dividend Growth(5Y)-11.53%
DP34.36%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.8%
Min EPS beat(2)-0.01%
Max EPS beat(2)1.61%
EPS beat(4)2
Avg EPS beat(4)0.73%
Min EPS beat(4)-0.61%
Max EPS beat(4)1.93%
EPS beat(8)6
Avg EPS beat(8)1.25%
EPS beat(12)10
Avg EPS beat(12)4.47%
EPS beat(16)14
Avg EPS beat(16)5.28%
Revenue beat(2)1
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)0.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.55%
Revenue beat(12)5
Avg Revenue beat(12)0.57%
Revenue beat(16)8
Avg Revenue beat(16)0.51%
PT rev (1m)-0.87%
PT rev (3m)-5.1%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-7.61%
EPS NY rev (1m)-2.87%
EPS NY rev (3m)-7%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-4.61%
Revenue NY rev (1m)-1.45%
Revenue NY rev (3m)-2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.12 | ||
| P/S | 1.3 | ||
| P/FCF | 10.08 | ||
| P/OCF | 7.13 | ||
| P/B | 2.23 | ||
| P/tB | 13.35 | ||
| EV/EBITDA | 6 |
EPS(TTM)3.41
EY9.85%
EPS(NY)3.42
Fwd EY9.88%
FCF(TTM)3.43
FCFY9.92%
OCF(TTM)4.85
OCFY14.03%
SpS26.69
BVpS15.54
TBVpS2.59
PEG (NY)34.43
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.12% | ||
| ROE | 21.11% | ||
| ROCE | 17.63% | ||
| ROIC | 14.25% | ||
| ROICexc | 16.37% | ||
| ROICexgc | 37.17% | ||
| OM | 17.55% | ||
| PM (TTM) | 12.29% | ||
| GM | 20.68% | ||
| FCFM | 12.87% |
ROA(3y)8.62%
ROA(5y)1.12%
ROE(3y)20.46%
ROE(5y)-2.64%
ROIC(3y)12.63%
ROIC(5y)9.85%
ROICexc(3y)14.72%
ROICexc(5y)11.35%
ROICexgc(3y)35.53%
ROICexgc(5y)27.24%
ROCE(3y)15.63%
ROCE(5y)12.19%
ROICexcg growth 3Y25.24%
ROICexcg growth 5Y22.3%
ROICexc growth 3Y27.06%
ROICexc growth 5Y22.52%
OM growth 3Y13.33%
OM growth 5Y13.92%
PM growth 3Y14.43%
PM growth 5YN/A
GM growth 3Y9.03%
GM growth 5Y10.12%
F-Score9
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 76.66% | ||
| Cap/Sales | 5.32% | ||
| Interest Coverage | 12.49 | ||
| Cash Conversion | 74.28% | ||
| Profit Quality | 104.71% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.8 |
F-Score9
WACC8.63%
ROIC/WACC1.65
Cap/Depr(3y)78.63%
Cap/Depr(5y)66.64%
Cap/Sales(3y)5.64%
Cap/Sales(5y)5.33%
Profit Quality(3y)92.52%
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 Y0.29%
EPS Next 2Y4.38%
EPS Next 3Y6.12%
EPS Next 5Y1.85%
Revenue 1Y (TTM)9.52%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%3.27%
Revenue Next Year1.52%
Revenue Next 2Y2.7%
Revenue Next 3Y2.9%
Revenue Next 5Y0.87%
EBIT growth 1Y15.82%
EBIT growth 3Y32.07%
EBIT growth 5Y16.16%
EBIT Next Year39.08%
EBIT Next 3Y15.3%
EBIT Next 5Y7.19%
FCF growth 1Y-0.57%
FCF growth 3Y9.99%
FCF growth 5Y4.73%
OCF growth 1Y-0.53%
OCF growth 3Y12.39%
OCF growth 5Y3.98%