SCHLUMBERGER LTD (SLB)
AN8068571086 - Common Stock
Overall SLB gets a fundamental rating of 6 out of 10. We evaluated SLB against 65 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 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.
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
With an excellent Return On Assets value of 9.06%, SLB belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.91%, SLB belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
SLB's Return On Invested Capital of 13.25% is amongst the best of the industry. SLB outperforms 86.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SLB is above the industry average of 7.69%.
The last Return On Invested Capital (13.25%) for SLB is above the 3 year average (10.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 20.91% | ||
| ROIC | 13.25% |
ROA(3y)7.09%
ROA(5y)-4.3%
ROE(3y)17.6%
ROE(5y)-15.4%
ROIC(3y)10.33%
ROIC(5y)8.17%
1.3 Margins
SLB has a better Profit Margin (12.71%) than 86.15% of its industry peers.
In the last couple of years the Profit Margin of SLB has grown nicely.
SLB has a better Operating Margin (16.71%) than 80.00% of its industry peers.
In the last couple of years the Operating Margin of SLB has grown nicely.
SLB has a Gross Margin of 19.97%. This is in the lower half of the industry: SLB underperforms 66.15% of its industry peers.
SLB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.71% | ||
| PM (TTM) | 12.71% | ||
| GM | 19.97% |
OM growth 3Y33.15%
OM growth 5Y11.51%
PM growth 3YN/A
PM growth 5Y14.25%
GM growth 3Y21.58%
GM growth 5Y8.62%
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.
Compared to 1 year ago, SLB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.16 indicates that SLB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, SLB is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
SLB has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as SLB would need 2.59 years to pay back of all of its debts.
SLB's Debt to FCF ratio of 2.59 is fine compared to the rest of the industry. SLB outperforms 67.69% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that SLB is somewhat dependend on debt financing.
SLB's Debt to Equity ratio of 0.52 is in line compared to the rest of the industry. SLB outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.64
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.37 indicates that SLB should not have too much problems paying its short term obligations.
SLB has a Current ratio of 1.37. This is in the lower half of the industry: SLB underperforms 75.38% of its industry peers.
A Quick Ratio of 1.02 indicates that SLB should not have too much problems paying its short term obligations.
SLB has a worse Quick ratio (1.02) than 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.45% over the past year.
SLB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.90% yearly.
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
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 Y18.78%
EPS Next 2Y18.55%
EPS Next 3Y16.45%
EPS Next 5Y12.23%
Revenue Next Year12.42%
Revenue Next 2Y12.69%
Revenue Next 3Y10.34%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.89 indicates a correct valuation of SLB.
Compared to the rest of the industry, the Price/Earnings ratio of SLB indicates a somewhat cheap valuation: SLB is cheaper than 67.69% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, SLB is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.48, which indicates a very decent valuation of SLB.
SLB's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.35. SLB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
61.54% of the companies in the same industry are cheaper than SLB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLB indicates a somewhat cheap valuation: SLB is cheaper than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.65 | ||
| EV/EBITDA | 9.52 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
SLB's earnings are expected to grow with 16.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)1.15
EPS Next 2Y18.55%
EPS Next 3Y16.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.24%, SLB has a reasonable but not impressive dividend return.
SLB's Dividend Yield is a higher than the industry average which is at 3.10.
SLB's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of SLB decreases each year by -14.31%.
SLB has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SLB decreased in the last 3 years.
Dividend Growth(5Y)-14.31%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
32.86% of the earnings are spent on dividend by SLB. This is a low number and sustainable payout ratio.
DP32.86%
EPS Next 2Y18.55%
EPS Next 3Y16.45%
SCHLUMBERGER LTD
NYSE:SLB (7/25/2024, 7:12:42 PM)
After market: 48.23 0 (0%)48.23
+0.2 (+0.42%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap68.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Dividend Growth(5Y)
DP
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Div Non Decr Years
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Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 11.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.79
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 20.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.71% | ||
| PM (TTM) | 12.71% | ||
| GM | 19.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.45%
EPS 3Y63.83%
EPS 5Y
EPS Q2Q%
EPS Next Y18.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.68%
Revenue growth 3Y11.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y