SCHLUMBERGER LTD (SLB)
AN8068571086 - Common Stock
Overall SLB gets a fundamental rating of 6 out of 10. We evaluated SLB against 62 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SLB.
1. Profitability
1.1 Basic Checks
SLB had positive earnings in the past year.
SLB had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SLB reported negative net income in multiple years.
Each year in the past 5 years SLB had a positive operating cash flow.
1.2 Ratios
SLB has a Return On Assets of 8.94%. This is amongst the best in the industry. SLB outperforms 80.65% of its industry peers.
SLB has a better Return On Equity (20.95%) than 88.71% of its industry peers.
SLB has a Return On Invested Capital of 13.20%. This is amongst the best in the industry. SLB outperforms 87.10% of its industry peers.
SLB had an Average Return On Invested Capital over the past 3 years of 10.34%. This is above the industry average of 7.61%.
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 Rank | Sector 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%
1.3 Margins
The Profit Margin of SLB (12.56%) is better than 82.26% of its industry peers.
In the last couple of years the Profit Margin of SLB has grown nicely.
Looking at the Operating Margin, with a value of 17.06%, SLB is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
In the last couple of years the Operating Margin of SLB has grown nicely.
The Gross Margin of SLB (20.29%) is worse than 64.52% of its industry peers.
SLB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for SLB has been increased compared to 1 year ago.
The number of shares outstanding for SLB has been increased compared to 5 years ago.
Compared to 1 year ago, SLB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.89 indicates that SLB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SLB (2.89) is better than 72.58% 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 has a Debt to FCF ratio of 2.90. This is in the better half of the industry: SLB outperforms 64.52% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that SLB is somewhat dependend on debt financing.
The Debt to Equity ratio of SLB (0.58) is worse than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.77
WACC7.45%
2.3 Liquidity
SLB has a Current Ratio of 1.49. 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 Current ratio of 1.49. This is in the lower half of the industry: SLB underperforms 75.81% of its industry peers.
A Quick Ratio of 1.13 indicates that SLB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, SLB is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.45% over the past year.
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.
SLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.19% yearly.
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
SLB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.23% yearly.
SLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.97% yearly.
EPS Next Y18.04%
EPS Next 2Y17.86%
EPS Next 3Y16.92%
EPS Next 5Y12.23%
Revenue Next Year11.63%
Revenue Next 2Y12.22%
Revenue Next 3Y10.24%
Revenue Next 5Y6.97%
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 stable.
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
Based on the Price/Earnings ratio of 12.33, the valuation of SLB can be described as correct.
Based on the Price/Earnings ratio, SLB is valued a bit cheaper than the industry average as 79.03% 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 30.52.
With a Price/Forward Earnings ratio of 9.62, the valuation of SLB can be described as very reasonable.
61.29% of the companies in the same industry are more expensive than SLB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.99. SLB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 9.62 |
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.
SLB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SLB is cheaper than 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.49 | ||
| EV/EBITDA | 7.71 |
4.3 Compensation for Growth
The 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 16.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)0.96
EPS Next 2Y17.86%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
SLB's Dividend Yield is a higher than the industry average which is at 3.62.
SLB's Dividend Yield is a higher than the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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.
SLB has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-14.31%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
33.14% of the earnings are spent on dividend by SLB. This is a low number and sustainable payout ratio.
DP33.14%
EPS Next 2Y17.86%
EPS Next 3Y16.92%
SCHLUMBERGER LTD
NYSE:SLB (9/13/2024, 8:04:00 PM)
After market: 40.32 +0.36 (+0.9%)39.96
+0.16 (+0.4%)
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 Cap56.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 9.62 | ||
| 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)0.68
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.94% | ||
| ROE | 20.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.06% | ||
| PM (TTM) | 12.56% | ||
| GM | 20.29% | ||
| 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 | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.13 | ||
| 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 Y18.04%
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