SLB (SLB.PA) Stock Fundamental Analysis
EPA:SLB - Euronext Paris - Matif - AN8068571086 - Common Stock - Currency: EUR
Overall SLB gets a fundamental rating of 6 out of 10. We evaluated SLB against 36 industry peers in the Energy Equipment & Services industry. SLB scores excellent on profitability, 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.
In multiple years SLB reported negative net income over the last 5 years.
Each year in the past 5 years SLB had a positive operating cash flow.
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 has a better Return On Equity (20.95%) than 72.22% of its industry peers.
With a decent Return On Invested Capital value of 13.20%, SLB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SLB is in line with the industry average of 10.45%.
The last Return On Invested Capital (13.20%) for SLB is above the 3 year average (10.34%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 12.56%, SLB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SLB has grown nicely.
With a Operating Margin value of 17.06%, SLB perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
SLB's Operating Margin has improved in the last couple of years.
SLB has a Gross Margin of 20.29%. This is comparable to the rest of the industry: SLB outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of SLB has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
SLB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SLB has more shares outstanding than it did 1 year ago.
SLB has more shares outstanding than it did 5 years ago.
SLB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.05 indicates that SLB is not in any danger for bankruptcy at the moment.
The Altman-Z score of SLB (3.05) is better than 86.11% of its industry peers.
SLB has a debt to FCF ratio of 2.90. This is a good value and a sign of high solvency as SLB would need 2.90 years to pay back of all of its debts.
SLB's Debt to FCF ratio of 2.90 is amongst the best of the industry. SLB outperforms 80.56% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that SLB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, SLB perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.72
WACC7.69%
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.
SLB has a Current ratio of 1.49. This is comparable to the rest of the industry: SLB outperforms 50.00% of its industry peers.
SLB has a Quick Ratio of 1.13. This is a normal value and indicates that SLB is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.13, SLB perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
SLB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.45%, which is quite impressive.
Measured over the past years, SLB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.90% on average per year.
The Revenue has grown by 12.68% in the past year. This is quite good.
SLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.19% yearly.
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
Based on estimates for the next years, SLB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.23% on average per year.
SLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.97% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
SLB is valuated correctly with a Price/Earnings ratio of 13.95.
Compared to the rest of the industry, the Price/Earnings ratio of SLB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.50, SLB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 10.82, the valuation of SLB can be described as reasonable.
SLB's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.44. SLB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.95 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SLB.
The rest of the industry has a similar Price/Free Cash Flow ratio as SLB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.23 | ||
| EV/EBITDA | 8.65 |
4.3 Compensation for Growth
The 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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.49%, SLB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.66, SLB pays a bit more dividend than its industry peers.
SLB's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector 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
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%
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)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap58.03B
Analysts84.57
Price Target60.96 (50.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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%
ROICexcg growth 3Y46.33%
ROICexcg 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 Rank | Sector 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%