SLB (SLB.PA) Fundamental Analysis & Valuation

EPA:SLB • AN8068571086

40.6 EUR
-0.1 (-0.25%)
Last: Aug 16, 2024, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This SLB.PA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Taking everything into account, SLB scores 6 out of 10 in our fundamental rating. SLB was compared to 36 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

1. SLB.PA Profitability Analysis

1.1 Basic Checks

  • In the past year SLB was profitable.
  • In the past year SLB had a positive cash flow from operations.
  • In multiple years SLB reported negative net income over the last 5 years.
  • In the past 5 years SLB always reported a positive cash flow from operatings.
SLB.PA Yearly Net Income VS EBIT VS OCF VS FCFSLB.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B -10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 8.94%, SLB is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
  • SLB's Return On Equity of 20.95% is fine compared to the rest of the industry. SLB outperforms 72.22% of its industry peers.
  • SLB has a Return On Invested Capital of 13.20%. This is in the better half of the industry: SLB outperforms 75.00% of its industry peers.
  • SLB had an Average Return On Invested Capital over the past 3 years of 10.34%. This is in line with the industry average of 10.29%.
  • The 3 year average ROIC (10.34%) for SLB is below the current ROIC(13.20%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.94%
ROE 20.95%
ROIC 13.2%
ROA(3y)7.09%
ROA(5y)-4.3%
ROE(3y)17.6%
ROE(5y)-15.4%
ROIC(3y)10.34%
ROIC(5y)8.18%
SLB.PA Yearly ROA, ROE, ROICSLB.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60 -80

1.3 Margins

  • SLB has a better Profit Margin (12.56%) than 75.00% of its industry peers.
  • In the last couple of years the Profit Margin of SLB has grown nicely.
  • SLB has a Operating Margin of 17.06%. This is comparable to the rest of the industry: SLB outperforms 55.56% of its industry peers.
  • SLB's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 20.29%, SLB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SLB has grown nicely.
Industry RankSector Rank
OM 17.06%
PM (TTM) 12.56%
GM 20.29%
OM growth 3Y33.24%
OM growth 5Y11.56%
PM growth 3YN/A
PM growth 5Y14.25%
GM growth 3Y21.65%
GM growth 5Y8.66%
SLB.PA Yearly Profit, Operating, Gross MarginsSLB.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 -20 -40

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6

2. SLB.PA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SLB is creating some value.
  • The number of shares outstanding for SLB has been increased compared to 1 year ago.
  • The debt/assets ratio for SLB has been reduced compared to a year ago.
SLB.PA Yearly Shares OutstandingSLB.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B
SLB.PA Yearly Total Debt VS Total AssetsSLB.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

  • SLB has an Altman-Z score of 3.05. This indicates that SLB is financially healthy and has little risk of bankruptcy at the moment.
  • SLB's Altman-Z score of 3.05 is amongst the best of the industry. SLB outperforms 86.11% of its industry peers.
  • The Debt to FCF ratio of SLB is 2.90, which is a good value as it means it would take SLB, 2.90 years of fcf income to pay off all of its debts.
  • SLB has a better Debt to FCF ratio (2.90) than 80.56% of its industry peers.
  • SLB has a Debt/Equity ratio of 0.58. This is a neutral value indicating SLB is somewhat dependend on debt financing.
  • SLB's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. SLB outperforms 47.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 2.9
Altman-Z 3.05
ROIC/WACC1.72
WACC7.69%
SLB.PA Yearly LT Debt VS Equity VS FCFSLB.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.3 Liquidity

  • SLB has a Current Ratio of 1.49. 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 Current ratio, with a value of 1.49, SLB is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • A Quick Ratio of 1.13 indicates that SLB should not have too much problems paying its short term obligations.
  • SLB has a Quick ratio of 1.13. This is comparable to the rest of the industry: SLB outperforms 41.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 1.13
SLB.PA Yearly Current Assets VS Current LiabilitesSLB.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SLB.PA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 20.45% over the past year.
  • The Earnings Per Share has been growing by 12.90% on average over the past years. This is quite good.
  • The Revenue has grown by 12.68% in the past year. This is quite good.
  • Measured over the past years, SLB shows a small growth in Revenue. The Revenue has been growing by 0.19% on average per year.
EPS 1Y (TTM)20.45%
EPS 3Y63.83%
EPS 5Y12.9%
EPS Q2Q%18.06%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y11.97%
Revenue growth 5Y0.19%
Sales Q2Q%12.84%

3.2 Future

  • SLB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.23% yearly.
  • The Revenue is expected to grow by 6.97% on average over the next years.
EPS Next Y18.35%
EPS Next 2Y18.21%
EPS Next 3Y16.86%
EPS Next 5Y12.23%
Revenue Next Year11.59%
Revenue Next 2Y12.36%
Revenue Next 3Y10.2%
Revenue Next 5Y6.97%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SLB.PA Yearly Revenue VS EstimatesSLB.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
SLB.PA Yearly EPS VS EstimatesSLB.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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5

4. SLB.PA Valuation Analysis

4.1 Price/Earnings Ratio

  • SLB is valuated correctly with a Price/Earnings ratio of 13.95.
  • SLB's Price/Earnings ratio is in line with the industry average.
  • SLB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.74, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 10.82, the valuation of SLB can be described as very reasonable.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SLB.
  • SLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.82.
Industry RankSector Rank
PE 13.95
Fwd PE 10.82
SLB.PA Price Earnings VS Forward Price EarningsSLB.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 in line with the industry average.
Industry RankSector Rank
P/FCF 14.23
EV/EBITDA 8.65
SLB.PA Per share dataSLB.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • SLB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • SLB has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as SLB's earnings are expected to grow with 16.86% in the coming years.
PEG (NY)0.76
PEG (5Y)1.08
EPS Next 2Y18.21%
EPS Next 3Y16.86%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. SLB.PA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.49%, SLB has a reasonable but not impressive dividend return.
  • SLB's Dividend Yield is a higher than the industry average which is at 3.13.
  • Compared to an average S&P500 Dividend Yield of 1.82, SLB pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.49%

5.2 History

  • The dividend of SLB decreases each year by -14.31%.
Dividend Growth(5Y)-14.31%
Div Incr Years2
Div Non Decr Years2
SLB.PA Yearly Dividends per shareSLB.PA Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

  • 33.14% of the earnings are spent on dividend by SLB. This is a low number and sustainable payout ratio.
DP33.14%
EPS Next 2Y18.21%
EPS Next 3Y16.86%
SLB.PA Yearly Income VS Free CF VS DividendSLB.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 -5B -10B
SLB.PA Dividend Payout.SLB.PA Dividend Payout, showing the Payout Ratio.SLB.PA Dividend Payout.PayoutRetained Earnings

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SLB.PA Fundamentals: All Metrics, Ratios and Statistics

SLB

EPA:SLB (8/16/2024, 7:00:00 PM)

40.6

-0.1 (-0.25%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)07-19
Earnings (Next)10-18
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap58.03B
Revenue(TTM)35.15B
Net Income(TTM)4.42B
Analysts84.57
Price Target60.96 (50.15%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.49%
Yearly Dividend0.93
Dividend Growth(5Y)-14.31%
DP33.14%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.66%
Min EPS beat(2)-0.61%
Max EPS beat(2)1.93%
EPS beat(4)3
Avg EPS beat(4)1%
Min EPS beat(4)-0.61%
Max EPS beat(4)1.93%
EPS beat(8)7
Avg EPS beat(8)3.08%
EPS beat(12)11
Avg EPS beat(12)4.71%
EPS beat(16)15
Avg EPS beat(16)8.42%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)-0.31%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)-0.31%
Revenue beat(8)2
Avg Revenue beat(8)0.24%
Revenue beat(12)5
Avg Revenue beat(12)0.62%
Revenue beat(16)8
Avg Revenue beat(16)0.71%
PT rev (1m)-0.36%
PT rev (3m)-3.97%
EPS NQ rev (1m)-3.14%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-0.84%
Valuation
Industry RankSector Rank
PE 13.95
Fwd PE 10.82
P/S 1.84
P/FCF 14.23
P/OCF 10
P/B 3.07
P/tB 19.33
EV/EBITDA 8.65
EPS(TTM)2.91
EY7.17%
EPS(NY)3.75
Fwd EY9.24%
FCF(TTM)2.85
FCFY7.03%
OCF(TTM)4.06
OCFY10%
SpS22.08
BVpS13.24
TBVpS2.1
PEG (NY)0.76
PEG (5Y)1.08
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 8.94%
ROE 20.95%
ROCE 16.22%
ROIC 13.2%
ROICexc 14.8%
ROICexgc 32.02%
OM 17.06%
PM (TTM) 12.56%
GM 20.29%
FCFM 12.92%
ROA(3y)7.09%
ROA(5y)-4.3%
ROE(3y)17.6%
ROE(5y)-15.4%
ROIC(3y)10.34%
ROIC(5y)8.18%
ROICexc(3y)12%
ROICexc(5y)9.32%
ROICexgc(3y)29.63%
ROICexgc(5y)22.67%
ROCE(3y)12.71%
ROCE(5y)10.06%
ROICexgc growth 3Y46.33%
ROICexgc growth 5Y22.07%
ROICexc growth 3Y46.48%
ROICexc growth 5Y25.36%
OM growth 3Y33.24%
OM growth 5Y11.56%
PM growth 3YN/A
PM growth 5Y14.25%
GM growth 3Y21.65%
GM growth 5Y8.66%
F-Score9
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 2.9
Debt/EBITDA 1.44
Cap/Depr 79.37%
Cap/Sales 5.46%
Interest Coverage 250
Cash Conversion 76.79%
Profit Quality 102.88%
Current Ratio 1.49
Quick Ratio 1.13
Altman-Z 3.05
F-Score9
WACC7.69%
ROIC/WACC1.72
Cap/Depr(3y)71.02%
Cap/Depr(5y)60.92%
Cap/Sales(3y)5.53%
Cap/Sales(5y)5.31%
Profit Quality(3y)119.82%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.45%
EPS 3Y63.83%
EPS 5Y12.9%
EPS Q2Q%18.06%
EPS Next Y18.35%
EPS Next 2Y18.21%
EPS Next 3Y16.86%
EPS Next 5Y12.23%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y11.97%
Revenue growth 5Y0.19%
Sales Q2Q%12.84%
Revenue Next Year11.59%
Revenue Next 2Y12.36%
Revenue Next 3Y10.2%
Revenue Next 5Y6.97%
EBIT growth 1Y19.94%
EBIT growth 3Y49.19%
EBIT growth 5Y11.77%
EBIT Next Year58.61%
EBIT Next 3Y25.44%
EBIT Next 5Y15.86%
FCF growth 1Y110.57%
FCF growth 3Y36.98%
FCF growth 5Y5.75%
OCF growth 1Y82.49%
OCF growth 3Y31.12%
OCF growth 5Y3.04%

SLB / SLB.PA FAQ

What is the ChartMill fundamental rating of SLB (SLB.PA) stock?

ChartMill assigns a fundamental rating of 6 / 10 to SLB.PA.


What is the valuation status for SLB stock?

ChartMill assigns a valuation rating of 5 / 10 to SLB (SLB.PA). This can be considered as Fairly Valued.


What is the profitability of SLB stock?

SLB (SLB.PA) has a profitability rating of 6 / 10.


What is the expected EPS growth for SLB (SLB.PA) stock?

The Earnings per Share (EPS) of SLB (SLB.PA) is expected to grow by 18.35% in the next year.


Can you provide the dividend sustainability for SLB stock?

The dividend rating of SLB (SLB.PA) is 4 / 10 and the dividend payout ratio is 33.14%.