SLB (SLB.PA) Stock Fundamental Analysis

EPA:SLB • AN8068571086

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

6

Overall SLB gets a fundamental rating of 6 out of 10. We evaluated SLB against 36 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.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • SLB had positive earnings in the past year.
  • 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.
  • SLB had a positive operating cash flow in each of the past 5 years.
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

  • SLB has a Return On Assets of 8.94%. This is in the better half of the industry: SLB outperforms 72.22% of its industry peers.
  • SLB has a Return On Equity of 20.95%. This is in the better half of the industry: SLB outperforms 72.22% of its industry peers.
  • SLB has a better Return On Invested Capital (13.20%) than 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 10.18%.
  • 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 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

  • The Profit Margin of SLB (12.56%) is better than 75.00% of its industry peers.
  • SLB's Profit Margin has improved in the last couple of years.
  • The Operating Margin of SLB (17.06%) is comparable to the rest of the 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.
  • SLB's Gross Margin has improved in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • Compared to 1 year ago, SLB has more shares outstanding
  • Compared to 1 year ago, SLB has an improved debt to assets ratio.
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

  • An Altman-Z score of 3.05 indicates that SLB is not in any danger for bankruptcy at the moment.
  • SLB has a better Altman-Z score (3.05) than 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's Debt to FCF ratio of 2.90 is amongst the best of the industry. SLB outperforms 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 has a Debt to Equity ratio (0.58) which is in line with 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

  • A Current Ratio of 1.49 indicates that SLB should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.49, SLB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • 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.
  • SLB has a Quick ratio (1.13) which is comparable to the rest of the industry.
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. 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.
  • The Earnings Per Share has been growing by 12.90% 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 12.68% in the last year.
  • The Revenue has been growing slightly by 0.19% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 12.23% on average over the next years. This is quite good.
  • Based on estimates for the next years, SLB will show a small growth in Revenue. The Revenue will grow by 6.97% on average per year.
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.
  • 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.
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. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.95, SLB is valued correctly.
  • SLB's Price/Earnings ratio is in line with the industry average.
  • SLB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.10.
  • A Price/Forward Earnings ratio of 10.82 indicates a reasonable valuation of SLB.
  • SLB's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of SLB to the average of the S&P500 Index (28.06), we can say SLB is valued rather cheaply.
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLB is on the same level as its industry peers.
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.
  • SLB's earnings are expected to grow with 16.86% in the coming years. This may justify a more expensive valuation.
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. Dividend

5.1 Amount

  • SLB has a Yearly Dividend Yield of 2.49%.
  • Compared to an average industry Dividend Yield of 3.18, SLB pays a bit more dividend than its industry peers.
  • SLB's Dividend Yield is a higher than the S&P500 average which is at 1.80.
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

  • SLB pays out 33.14% of its income as dividend. This is a 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

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%.