SCHLUMBERGER LTD (SLB) Stock Fundamental Analysis
NYSE:SLB - New York Stock Exchange, Inc. - AN8068571086 - Common Stock - Currency: USD
Taking everything into account, SLB scores 6 out of 10 in our fundamental rating. SLB was compared to 59 industry peers in the Energy Equipment & Services industry. SLB has an excellent profitability rating, but there are some minor concerns on its financial health. SLB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SLB was profitable.
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 each of the past 5 years.
1.2 Ratios
SLB's Return On Assets of 9.12% is fine compared to the rest of the industry. SLB outperforms 75.86% 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 87.93% 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 89.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SLB is above the industry average of 8.19%.
The last Return On Invested Capital (14.25%) for SLB is above the 3 year average (12.63%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 12.29%, SLB belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
SLB's Profit Margin has improved in the last couple of years.
SLB has a better Operating Margin (17.55%) than 81.03% of its industry peers.
SLB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.68%, SLB is doing worse than 65.52% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SLB is creating some value.
SLB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SLB has been increased compared to 5 years ago.
Compared to 1 year ago, SLB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.07 indicates that SLB is not in any danger for bankruptcy at the moment.
SLB has a Altman-Z score of 3.07. This is in the better half of the industry: SLB outperforms 77.59% 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.
The Debt to FCF ratio of SLB (2.58) is better than 67.24% 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.
SLB has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: SLB outperforms 41.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.6
WACC8.93%
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: 74.14% of the companies in the same industry are doing better.
A Quick Ratio of 1.11 indicates that SLB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, SLB is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.11 |
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.
The Earnings Per Share has been growing by 18.33% 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 9.52% in the last year.
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
Based on estimates for the next years, SLB will show a small growth in Earnings Per Share. The EPS will grow by 5.96% on average per year.
SLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.11% yearly.
EPS Next Y3.21%
EPS Next 2Y6.46%
EPS Next 3Y7.89%
EPS Next 5Y5.96%
Revenue Next Year2.65%
Revenue Next 2Y3.51%
Revenue Next 3Y3.72%
Revenue Next 5Y3.11%
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
The Price/Earnings ratio is 12.24, which indicates a correct valuation of SLB.
Compared to the rest of the industry, the Price/Earnings ratio of SLB indicates a somewhat cheap valuation: SLB is cheaper than 74.14% of the companies listed in the same industry.
SLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 11.86 indicates a reasonable valuation of SLB.
65.52% 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 (22.68), we can say SLB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
SLB's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLB indicates a somewhat cheap valuation: SLB is cheaper than 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.52 | ||
| EV/EBITDA | 7.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SLB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.81
PEG (5Y)0.67
EPS Next 2Y6.46%
EPS Next 3Y7.89%
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 3.47, SLB pays a better dividend. On top of this SLB pays more dividend than 81.03% of the companies listed in the same industry.
SLB's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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 2Y6.46%
EPS Next 3Y7.89%
41.74
-0.86 (-2.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.44%
Inst Owner Change0.85%
Ins Owners0.2%
Ins Owner Change3.3%
Market Cap58.47B
Analysts80.57
Price Target54.07 (29.54%)
Short Float %5.12%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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)-4.08%
PT rev (3m)-12.15%
EPS NQ rev (1m)-6.26%
EPS NQ rev (3m)-17.31%
EPS NY rev (1m)-4.29%
EPS NY rev (3m)-5%
Revenue NQ rev (1m)-3.89%
Revenue NQ rev (3m)-12.14%
Revenue NY rev (1m)-1.72%
Revenue NY rev (3m)-2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.86 | ||
| P/S | 1.61 | ||
| P/FCF | 12.52 | ||
| P/OCF | 8.86 | ||
| P/B | 2.77 | ||
| P/tB | 16.59 | ||
| EV/EBITDA | 7.42 |
EPS(TTM)3.41
EY8.17%
EPS(NY)3.52
Fwd EY8.43%
FCF(TTM)3.33
FCFY7.99%
OCF(TTM)4.71
OCFY11.29%
SpS25.9
BVpS15.08
TBVpS2.52
PEG (NY)3.81
PEG (5Y)0.67
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 | 3.07 |
F-Score9
WACC8.93%
ROIC/WACC1.6
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 Y3.21%
EPS Next 2Y6.46%
EPS Next 3Y7.89%
EPS Next 5Y5.96%
Revenue 1Y (TTM)9.52%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%3.27%
Revenue Next Year2.65%
Revenue Next 2Y3.51%
Revenue Next 3Y3.72%
Revenue Next 5Y3.11%
EBIT growth 1Y15.82%
EBIT growth 3Y32.07%
EBIT growth 5Y16.16%
EBIT Next Year40.41%
EBIT Next 3Y16.05%
EBIT Next 5Y9.45%
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%