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SCHLUMBERGER LTD (SLB) Stock Fundamental Analysis

NYSE:SLB - New York Stock Exchange, Inc. - AN8068571086 - Common Stock - Currency: USD

35.55  -0.17 (-0.48%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to SLB. SLB was compared to 62 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

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.
Of the past 5 years SLB 4 years were profitable.
SLB had a positive operating cash flow in each of the past 5 years.
SLB Yearly Net Income VS EBIT VS OCF VS FCFSLB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B -10B

1.2 Ratios

Looking at the Return On Assets, with a value of 8.55%, SLB belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
SLB's Return On Equity of 21.47% is amongst the best of the industry. SLB outperforms 88.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.10%, SLB belongs to the top of the industry, outperforming 91.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SLB is above the industry average of 8.45%.
The last Return On Invested Capital (15.10%) for SLB is above the 3 year average (12.63%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.55%
ROE 21.47%
ROIC 15.1%
ROA(3y)8.62%
ROA(5y)1.12%
ROE(3y)20.46%
ROE(5y)-2.64%
ROIC(3y)12.63%
ROIC(5y)9.85%
SLB Yearly ROA, ROE, ROICSLB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80

1.3 Margins

The Profit Margin of SLB (11.62%) is better than 77.42% of its industry peers.
SLB's Profit Margin has improved in the last couple of years.
SLB has a Operating Margin of 17.59%. This is in the better half of the industry: SLB outperforms 79.03% of its industry peers.
In the last couple of years the Operating Margin of SLB has grown nicely.
Looking at the Gross Margin, with a value of 20.63%, SLB is doing worse than 67.74% 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 17.59%
PM (TTM) 11.62%
GM 20.63%
OM growth 3Y13.33%
OM growth 5Y13.92%
PM growth 3Y14.43%
PM growth 5YN/A
GM growth 3Y9.03%
GM growth 5Y10.12%
SLB Yearly Profit, Operating, Gross MarginsSLB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SLB is 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.
SLB Yearly Shares OutstandingSLB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B
SLB Yearly Total Debt VS Total AssetsSLB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

SLB has an Altman-Z score of 2.72. This is not the best score and indicates that SLB is in the grey zone with still only limited risk for bankruptcy at the moment.
SLB's Altman-Z score of 2.72 is fine compared to the rest of the industry. SLB outperforms 74.19% of its industry peers.
SLB has a debt to FCF ratio of 2.80. This is a good value and a sign of high solvency as SLB would need 2.80 years to pay back of all of its debts.
SLB's Debt to FCF ratio of 2.80 is fine compared to the rest of the industry. SLB outperforms 69.35% of its industry peers.
SLB has a Debt/Equity ratio of 0.54. This is a neutral value indicating SLB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, SLB is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 2.8
Altman-Z 2.72
ROIC/WACC1.7
WACC8.88%
SLB Yearly LT Debt VS Equity VS FCFSLB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

A Current Ratio of 1.24 indicates that SLB should not have too much problems paying its short term obligations.
SLB's Current ratio of 1.24 is on the low side compared to the rest of the industry. SLB is outperformed by 83.87% of its industry peers.
SLB has a Quick Ratio of 1.24. This is a bad value and indicates that SLB is not financially healthy enough and could expect problems in meeting its short term obligations.
SLB has a Quick ratio of 0.93. This is amonst the worse of the industry: SLB underperforms 80.65% of its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.93
SLB Yearly Current Assets VS Current LiabilitesSLB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.68% over the past year.
Measured over the past years, SLB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.33% on average per year.
The Revenue has been growing slightly by 5.76% in the past year.
Measured over the past years, SLB shows a small growth in Revenue. The Revenue has been growing by 1.97% on average per year.
EPS 1Y (TTM)8.68%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%-4%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-2.49%

3.2 Future

The Earnings Per Share is expected to grow by 1.85% on average over the next years.
Based on estimates for the next years, SLB will show a small growth in Revenue. The Revenue will grow by 0.87% on average per year.
EPS Next Y0.29%
EPS Next 2Y4.38%
EPS Next 3Y6.12%
EPS Next 5Y1.85%
Revenue Next Year-2.54%
Revenue Next 2Y0.59%
Revenue Next 3Y1.5%
Revenue Next 5Y0.87%

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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SLB Yearly Revenue VS EstimatesSLB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
SLB Yearly EPS VS EstimatesSLB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4 5

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.52, the valuation of SLB can be described as very reasonable.
Based on the Price/Earnings ratio, SLB is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
SLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.05.
Based on the Price/Forward Earnings ratio of 9.57, the valuation of SLB can be described as reasonable.
SLB's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SLB to the average of the S&P500 Index (21.07), we can say SLB is valued rather cheaply.
Industry RankSector Rank
PE 10.52
Fwd PE 9.57
SLB Price Earnings VS Forward Price EarningsSLB 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 indicates a slightly more expensive valuation: SLB is more expensive than 62.90% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SLB.
Industry RankSector Rank
P/FCF 9.66
EV/EBITDA 6.48
SLB Per share dataSLB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SLB may justify a higher PE ratio.
PEG (NY)35.68
PEG (5Y)0.57
EPS Next 2Y4.38%
EPS Next 3Y6.12%

5

5. Dividend

5.1 Amount

SLB has a Yearly Dividend Yield of 3.32%. Purely for dividend investing, there may be better candidates out there.
SLB's Dividend Yield is rather good when compared to the industry average which is at 3.88. SLB pays more dividend than 80.65% of the companies in the same industry.
SLB's Dividend Yield is a higher than the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 3.32%

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
SLB Yearly Dividends per shareSLB Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

37.28% of the earnings are spent on dividend by SLB. This is a low number and sustainable payout ratio.
DP37.28%
EPS Next 2Y4.38%
EPS Next 3Y6.12%
SLB Yearly Income VS Free CF VS DividendSLB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B -10B
SLB Dividend Payout.SLB Dividend Payout, showing the Payout Ratio.SLB Dividend Payout.PayoutRetained Earnings

SCHLUMBERGER LTD

NYSE:SLB (5/16/2025, 9:44:10 AM)

35.55

-0.17 (-0.48%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)04-25 2025-04-25/bmo
Earnings (Next)07-17 2025-07-17/amc
Inst Owners85.44%
Inst Owner Change2.38%
Ins Owners0.2%
Ins Owner Change5.61%
Market Cap48.35B
Analysts82.35
Price Target48.78 (37.22%)
Short Float %4.64%
Short Ratio3.25
Dividend
Industry RankSector Rank
Dividend Yield 3.32%
Yearly Dividend1.08
Dividend Growth(5Y)-11.53%
DP37.28%
Div Incr Years3
Div Non Decr Years3
Ex-Date06-04 2025-06-04 (0.285)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.97%
Min EPS beat(2)-3.55%
Max EPS beat(2)1.61%
EPS beat(4)2
Avg EPS beat(4)-0.01%
Min EPS beat(4)-3.55%
Max EPS beat(4)1.93%
EPS beat(8)5
Avg EPS beat(8)0.37%
EPS beat(12)9
Avg EPS beat(12)3.88%
EPS beat(16)13
Avg EPS beat(16)4.33%
Revenue beat(2)1
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)0.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-2.2%
Max Revenue beat(4)0.1%
Revenue beat(8)1
Avg Revenue beat(8)-1.19%
Revenue beat(12)4
Avg Revenue beat(12)0.38%
Revenue beat(16)7
Avg Revenue beat(16)0.28%
PT rev (1m)-8.98%
PT rev (3m)-9.96%
EPS NQ rev (1m)-7.6%
EPS NQ rev (3m)-8.78%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-2.86%
Revenue NQ rev (1m)-6.54%
Revenue NQ rev (3m)-8.6%
Revenue NY rev (1m)-3.99%
Revenue NY rev (3m)-5.05%
Valuation
Industry RankSector Rank
PE 10.52
Fwd PE 9.57
P/S 1.34
P/FCF 9.66
P/OCF 6.97
P/B 2.48
P/tB 25.25
EV/EBITDA 6.48
EPS(TTM)3.38
EY9.51%
EPS(NY)3.72
Fwd EY10.45%
FCF(TTM)3.68
FCFY10.35%
OCF(TTM)5.1
OCFY14.34%
SpS26.52
BVpS14.35
TBVpS1.41
PEG (NY)35.68
PEG (5Y)0.57
Profitability
Industry RankSector Rank
ROA 8.55%
ROE 21.47%
ROCE 18.68%
ROIC 15.1%
ROICexc 17.05%
ROICexgc 41.13%
OM 17.59%
PM (TTM) 11.62%
GM 20.63%
FCFM 13.88%
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-Score7
Asset Turnover0.74
Health
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 2.8
Debt/EBITDA 1.18
Cap/Depr 75.42%
Cap/Sales 5.35%
Interest Coverage 250
Cash Conversion 77.9%
Profit Quality 119.45%
Current Ratio 1.24
Quick Ratio 0.93
Altman-Z 2.72
F-Score7
WACC8.88%
ROIC/WACC1.7
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)8.68%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%-4%
EPS Next Y0.29%
EPS Next 2Y4.38%
EPS Next 3Y6.12%
EPS Next 5Y1.85%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-2.49%
Revenue Next Year-2.54%
Revenue Next 2Y0.59%
Revenue Next 3Y1.5%
Revenue Next 5Y0.87%
EBIT growth 1Y10.83%
EBIT growth 3Y32.07%
EBIT growth 5Y16.16%
EBIT Next Year39.08%
EBIT Next 3Y15.3%
EBIT Next 5Y7.19%
FCF growth 1Y128.02%
FCF growth 3Y9.99%
FCF growth 5Y4.73%
OCF growth 1Y76.96%
OCF growth 3Y12.39%
OCF growth 5Y3.98%