SCHLUMBERGER LTD (SLB) Stock Fundamental Analysis
NYSE:SLB - New York Stock Exchange, Inc. - AN8068571086 - Common Stock - Currency: USD
Overall SLB gets a fundamental rating of 5 out of 10. We evaluated SLB against 62 industry peers in the Energy Equipment & Services industry. SLB scores excellent on profitability, 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.
SLB had a positive operating cash flow in the past year.
Of the past 5 years SLB 4 years were profitable.
In the past 5 years SLB always reported a positive cash flow from operatings.
1.2 Ratios
SLB's Return On Assets of 8.55% is amongst the best of the industry. SLB outperforms 82.26% of its industry peers.
Looking at the Return On Equity, with a value of 21.47%, SLB belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
SLB has a better Return On Invested Capital (15.10%) than 91.94% of its industry peers.
SLB had an Average Return On Invested Capital over the past 3 years of 12.63%. This is above the industry average of 8.69%.
The 3 year average ROIC (12.63%) for SLB is below the current ROIC(15.10%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of SLB (11.62%) is better than 77.42% of its industry peers.
In the last couple of years the Profit Margin of SLB has grown nicely.
SLB has a Operating Margin of 17.59%. This is in the better half of the industry: SLB outperforms 79.03% of its industry peers.
SLB's Operating Margin has improved in the last couple of years.
SLB's Gross Margin of 20.63% is on the low side compared to the rest of the industry. SLB is outperformed by 67.74% of its industry peers.
In the last couple of years the Gross Margin of SLB has grown nicely.
| Industry Rank | Sector 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%
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 less shares outstanding
Compared to 5 years ago, SLB has more shares outstanding
The debt/assets ratio for SLB has been reduced compared to a year ago.
2.2 Solvency
SLB has an Altman-Z score of 2.69. 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.
Looking at the Altman-Z score, with a value of 2.69, SLB is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.80, SLB is doing good in the industry, outperforming 70.97% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that SLB is somewhat dependend on debt financing.
The Debt to Equity ratio of SLB (0.54) is worse than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.72
WACC8.79%
2.3 Liquidity
SLB has a Current Ratio of 1.24. This is a normal value and indicates that SLB is financially healthy and should not expect problems in meeting 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 worse Quick ratio (0.93) than 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
SLB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.68%, which is quite good.
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.
SLB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.76%.
SLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.97% yearly.
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
Based on estimates for the next years, SLB will show a small growth in Earnings Per Share. The EPS will grow by 1.85% on average per year.
The Revenue is expected to grow by 0.87% on average over the next years.
EPS Next Y-6.12%
EPS Next 2Y0.6%
EPS Next 3Y4.41%
EPS Next 5Y1.85%
Revenue Next Year-2.54%
Revenue Next 2Y0.59%
Revenue Next 3Y1.5%
Revenue Next 5Y0.87%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.06, the valuation of SLB can be described as reasonable.
Based on the Price/Earnings ratio, SLB is valued a bit cheaper than 74.19% of the companies in the same industry.
SLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 9.85, the valuation of SLB can be described as reasonable.
64.52% of the companies in the same industry are more expensive than SLB, based on the Price/Forward Earnings ratio.
SLB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
SLB's Enterprise Value to EBITDA ratio is in line with the industry average.
SLB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.24 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
The excellent profitability rating of SLB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y0.6%
EPS Next 3Y4.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, SLB has a reasonable but not impressive dividend return.
SLB's Dividend Yield is rather good when compared to the industry average which is at 3.93. 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
37.28% of the earnings are spent on dividend by SLB. This is a low number and sustainable payout ratio.
DP37.28%
EPS Next 2Y0.6%
EPS Next 3Y4.41%
NYSE:SLB (5/21/2025, 3:21:10 PM)
33.995
-0.58 (-1.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.44%
Inst Owner Change0.96%
Ins Owners0.2%
Ins Owner Change5.81%
Market Cap46.24B
Analysts82.35
Price Target48.78 (43.49%)
Short Float %4.64%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend1.08
Dividend Growth(5Y)-11.53%
DP37.28%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)-7.59%
EPS NQ rev (3m)-8.77%
EPS NY rev (1m)-6.4%
EPS NY rev (3m)-9.04%
Revenue NQ rev (1m)-6.54%
Revenue NQ rev (3m)-8.62%
Revenue NY rev (1m)-3.99%
Revenue NY rev (3m)-5.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 9.85 | ||
| P/S | 1.28 | ||
| P/FCF | 9.24 | ||
| P/OCF | 6.67 | ||
| P/B | 2.37 | ||
| P/tB | 24.15 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)3.38
EY9.94%
EPS(NY)3.45
Fwd EY10.15%
FCF(TTM)3.68
FCFY10.82%
OCF(TTM)5.1
OCFY15%
SpS26.52
BVpS14.35
TBVpS1.41
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.69 |
F-Score7
WACC8.79%
ROIC/WACC1.72
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 Y-6.12%
EPS Next 2Y0.6%
EPS Next 3Y4.41%
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%