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

Peter Lynch’s investment philosophy combines fundamental analysis with a deep understanding of business models. Let’s analyze if SCHLUMBERGER LTD (NYSE:SLB) meets his criteria for a solid investment.

Does SCHLUMBERGER LTD (NYSE:SLB) match Peter Lynch’s “Invest in What You Know” philosophy?

• The Return on Equity (ROE) of SLB stands at 21.47%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• A Debt/Equity ratio of 0.54 highlights SLB's commitment to maintaining financial stability.
• Over the past 5 years, SLB has demonstrated 18.33 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• A PEG ratio of 0.55 suggests that SLB offers an attractive balance between growth and valuation.
• A Current Ratio of 1.24 suggests that SLB has sufficient assets to cover its short-term liabilities.

What else is there to say on the fundamentals of SLB?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, SLB scores 6 out of 10 in our fundamental rating. SLB was compared to 62 industry peers in the Energy Equipment & Services industry. While SLB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SLB has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of SLB

Every day, new Affordable Growth stocks can be found on ChartMill in our Peter Lynch screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.