Is SCHLUMBERGER LTD (NYSE:SLB) the type of stock Peter Lynch would love?

Peter Lynch favored companies with strong earnings growth, reasonable valuations, and solid financials. In this analysis, we’ll determine if SCHLUMBERGER LTD (NYSE:SLB) qualifies as a true Lynch-style investment.

Following Peter Lynch’s approach: Does SCHLUMBERGER LTD (NYSE:SLB) fit the bill?

• SLB has a healthy Return on Equity(ROE) of 21.11%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• With a Debt/Equity ratio of 0.52, SLB maintains a solid financial position with controlled leverage.
• The 5-year EPS growth of SLB (18.33) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• Considering its PEG ratio of 0.66, SLB may be an undervalued growth opportunity.
• SLB's Current Ratio of 1.45 reflects a strong ability to manage short-term financial commitments.

Zooming in on the fundamentals.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

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 has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of SLB contains the most current fundamental analsysis.

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Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.