SCHLUMBERGER NV (SLB) Stock Fundamental Analysis
USA - NYSE:SLB - AN8068571086 - Common Stock
34.26 USD
+0.15 (+0.44%)
34.34 USD
+0.08 (+0.23%)
Taking everything into account, SLB scores 6 out of 10 in our fundamental rating. SLB was compared to 61 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 correct valuation and a medium 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.
Of the past 5 years SLB 4 years were profitable.
SLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.39%, SLB belongs to the top of the industry, outperforming 81.97% of the companies in the same industry.
The Return On Equity of SLB (20.16%) is better than 86.89% of its industry peers.
SLB's Return On Invested Capital of 14.23% is amongst the best of the industry. SLB outperforms 93.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SLB is above the industry average of 8.04%.
The last Return On Invested Capital (14.23%) for SLB is above the 3 year average (12.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 20.16% | ||
| ROIC | 14.23% |
ROA(3y)8.62%
ROA(5y)1.12%
ROE(3y)20.46%
ROE(5y)-2.64%
ROIC(3y)12.63%
ROIC(5y)9.85%
1.3 Margins
Looking at the Profit Margin, with a value of 11.53%, SLB belongs to the top of the industry, outperforming 83.61% of the companies in the same industry.
SLB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.23%, SLB is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
SLB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.29%, SLB is not doing good in the industry: 70.49% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SLB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.23% | ||
| PM (TTM) | 11.53% | ||
| GM | 20.29% |
OM growth 3Y13.33%
OM growth 5Y13.92%
PM growth 3Y14.43%
PM growth 5YN/A
GM growth 3Y9.03%
GM growth 5Y10.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SLB is still creating some value.
Compared to 1 year ago, SLB has less shares outstanding
The number of shares outstanding for SLB has been increased compared to 5 years ago.
SLB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.83 indicates that SLB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SLB (2.83) is better than 77.05% of its industry peers.
The Debt to FCF ratio of SLB is 2.85, which is a good value as it means it would take SLB, 2.85 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.85, SLB is doing good in the industry, outperforming 67.21% of the companies in the same industry.
SLB has a Debt/Equity ratio of 0.54. This is a neutral value indicating SLB is somewhat dependend on debt financing.
SLB's Debt to Equity ratio of 0.54 is in line compared to the rest of the industry. SLB outperforms 40.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.63
WACC8.71%
2.3 Liquidity
SLB has a Current Ratio of 1.31. This is a normal value and indicates that SLB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SLB (1.31) is worse than 73.77% of its industry peers.
A Quick Ratio of 0.98 indicates that SLB may have some problems paying its short term obligations.
The Quick ratio of SLB (0.98) is worse than 80.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.93% over the past year.
The Earnings Per Share has been growing by 18.33% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.95% in the past year.
SLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.97% yearly.
EPS 1Y (TTM)0.93%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%-12.94%
Revenue 1Y (TTM)0.95%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-6.49%
3.2 Future
The Earnings Per Share is expected to grow by 1.65% on average over the next years.
The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y-14.57%
EPS Next 2Y-5.31%
EPS Next 3Y0.43%
EPS Next 5Y1.65%
Revenue Next Year-2.33%
Revenue Next 2Y1.25%
Revenue Next 3Y2.15%
Revenue Next 5Y1.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.48, which indicates a very decent valuation of SLB.
Compared to the rest of the industry, the Price/Earnings ratio of SLB indicates a rather cheap valuation: SLB is cheaper than 88.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. SLB is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.20, the valuation of SLB can be described as very reasonable.
SLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. SLB is cheaper than 85.25% of the companies in the same industry.
SLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
62.30% of the companies in the same industry are cheaper than SLB, based on the Enterprise Value to EBITDA ratio.
SLB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SLB is cheaper than 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.66 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
The excellent profitability rating of SLB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-5.31%
EPS Next 3Y0.43%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 3.34%.
Compared to an average industry Dividend Yield of 3.26, SLB pays a better dividend. On top of this SLB pays more dividend than 85.25% of the companies listed in the same industry.
SLB's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
The dividend of SLB decreases each year by -11.53%.
SLB has paid a dividend for at least 10 years, which is a reliable track record.
SLB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.53%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SLB pays out 38.00% of its income as dividend. This is a sustainable payout ratio.
DP38%
EPS Next 2Y-5.31%
EPS Next 3Y0.43%
34.26
+0.15 (+0.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.03%
Inst Owner Change0%
Ins Owners0.18%
Ins Owner Change0.5%
Market Cap51.18B
Analysts83.23
Price Target46.11 (34.59%)
Short Float %2.76%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Yearly Dividend1.08
Dividend Growth(5Y)-11.53%
DP38%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.36%
Min EPS beat(2)-3.55%
Max EPS beat(2)0.83%
EPS beat(4)2
Avg EPS beat(4)-0.28%
Min EPS beat(4)-3.55%
Max EPS beat(4)1.61%
EPS beat(8)5
Avg EPS beat(8)0.36%
EPS beat(12)9
Avg EPS beat(12)1.96%
EPS beat(16)13
Avg EPS beat(16)3.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)-0.18%
Revenue beat(4)1
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-2.2%
Max Revenue beat(4)0.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.91%
Revenue beat(12)3
Avg Revenue beat(12)-0.2%
Revenue beat(16)6
Avg Revenue beat(16)0.19%
PT rev (1m)-0.59%
PT rev (3m)-4.37%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-15.31%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-8.79%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.48 | ||
| Fwd PE | 11.2 | ||
| P/S | 1.44 | ||
| P/FCF | 10.66 | ||
| P/OCF | 7.71 | ||
| P/B | 2.52 | ||
| P/tB | 18.6 | ||
| EV/EBITDA | 6.99 |
EPS(TTM)3.27
EY9.54%
EPS(NY)3.06
Fwd EY8.92%
FCF(TTM)3.22
FCFY9.38%
OCF(TTM)4.45
OCFY12.98%
SpS23.75
BVpS13.59
TBVpS1.84
PEG (NY)N/A
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | 20.16% | ||
| ROCE | 17.6% | ||
| ROIC | 14.23% | ||
| ROICexc | 15.95% | ||
| ROICexgc | 36.78% | ||
| OM | 17.23% | ||
| PM (TTM) | 11.53% | ||
| GM | 20.29% | ||
| FCFM | 13.54% |
ROA(3y)8.62%
ROA(5y)1.12%
ROE(3y)20.46%
ROE(5y)-2.64%
ROIC(3y)12.63%
ROIC(5y)9.85%
ROICexc(3y)14.72%
ROICexc(5y)11.35%
ROICexgc(3y)35.53%
ROICexgc(5y)27.24%
ROCE(3y)15.63%
ROCE(5y)12.19%
ROICexcg growth 3Y25.24%
ROICexcg growth 5Y22.3%
ROICexc growth 3Y27.06%
ROICexc growth 5Y22.52%
OM growth 3Y13.33%
OM growth 5Y13.92%
PM growth 3Y14.43%
PM growth 5YN/A
GM growth 3Y9.03%
GM growth 5Y10.12%
F-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 71.77% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.55% | ||
| Profit Quality | 117.38% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.83 |
F-Score6
WACC8.71%
ROIC/WACC1.63
Cap/Depr(3y)78.63%
Cap/Depr(5y)66.64%
Cap/Sales(3y)5.64%
Cap/Sales(5y)5.33%
Profit Quality(3y)92.52%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.93%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%-12.94%
EPS Next Y-14.57%
EPS Next 2Y-5.31%
EPS Next 3Y0.43%
EPS Next 5Y1.65%
Revenue 1Y (TTM)0.95%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-6.49%
Revenue Next Year-2.33%
Revenue Next 2Y1.25%
Revenue Next 3Y2.15%
Revenue Next 5Y1.86%
EBIT growth 1Y1.97%
EBIT growth 3Y32.07%
EBIT growth 5Y16.16%
EBIT Next Year28.43%
EBIT Next 3Y13.2%
EBIT Next 5Y7.98%
FCF growth 1Y46.25%
FCF growth 3Y9.99%
FCF growth 5Y4.73%
OCF growth 1Y29.73%
OCF growth 3Y12.39%
OCF growth 5Y3.98%