SCHLUMBERGER LTD (SLB) Stock Fundamental Analysis
NYSE:SLB - AN8068571086 - Common Stock
35.61 USD
+1.8 (+5.32%)
35.61 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to SLB. SLB was compared to 61 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
SLB had positive earnings in the past year.
SLB had a positive operating cash flow in the past year.
SLB had positive earnings in 4 of the past 5 years.
In the past 5 years SLB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.39%, SLB is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
SLB's Return On Equity of 20.16% is amongst the best of the industry. SLB outperforms 86.89% of its industry peers.
With an excellent Return On Invested Capital value of 14.23%, SLB belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
SLB had an Average Return On Invested Capital over the past 3 years of 12.63%. This is above the industry average of 7.98%.
The 3 year average ROIC (12.63%) for SLB is below the current ROIC(14.23%), indicating increased profibility in the last year.
| 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
SLB has a better Profit Margin (11.53%) than 81.97% of its industry peers.
In the last couple of years the Profit Margin of SLB has grown nicely.
SLB's Operating Margin of 17.23% is fine compared to the rest of the industry. SLB outperforms 78.69% of its industry peers.
In the last couple of years the Operating Margin of SLB has grown nicely.
SLB's Gross Margin of 20.29% is on the low side compared to the rest of the industry. SLB is outperformed by 70.49% of its industry peers.
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.
The debt/assets ratio for SLB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.81 indicates that SLB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.81, SLB is doing good in the industry, outperforming 75.41% of the companies in the same industry.
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.
SLB has a better Debt to FCF ratio (2.85) than 68.85% 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.
SLB has a Debt to Equity ratio of 0.54. This is comparable 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 | 2.81 |
ROIC/WACC1.68
WACC8.49%
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.
With a Current ratio value of 1.31, SLB is not doing good in the industry: 78.69% of the companies in the same industry are doing better.
SLB has a Quick Ratio of 1.31. 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 0.98. This is amonst the worse of the industry: SLB underperforms 80.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
SLB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.93%.
SLB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.33% yearly.
Looking at the last year, SLB shows a small growth in Revenue. The Revenue has grown by 0.95% in the last 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 1.68% on average over the next years.
The Revenue is expected to grow by 1.79% on average over the next years.
EPS Next Y-8.89%
EPS Next 2Y-1.33%
EPS Next 3Y3.9%
EPS Next 5Y1.68%
Revenue Next Year-2.24%
Revenue Next 2Y1.4%
Revenue Next 3Y2.25%
Revenue Next 5Y1.79%
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 10.89, which indicates a very decent valuation of SLB.
81.97% of the companies in the same industry are more expensive than SLB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SLB to the average of the S&P500 Index (26.76), we can say SLB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.73, the valuation of SLB can be described as reasonable.
Based on the Price/Forward Earnings ratio, SLB is valued cheaply inside the industry as 80.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.91, SLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLB is valued a bit more expensive than the industry average as 60.66% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, SLB is valued a bit cheaper than 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.06 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
The excellent profitability rating of SLB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-1.33%
EPS Next 3Y3.9%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 3.43%.
SLB's Dividend Yield is rather good when compared to the industry average which is at 3.45. SLB pays more dividend than 83.61% 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 | 3.43% |
5.2 History
The dividend of SLB decreases each year by -11.53%.
SLB has been paying a dividend for at least 10 years, so it has 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-1.33%
EPS Next 3Y3.9%
35.61
+1.8 (+5.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners82.04%
Inst Owner Change-2.76%
Ins Owners0.18%
Ins Owner Change1.62%
Market Cap53.13B
Analysts83.03
Price Target46.62 (30.92%)
Short Float %2.41%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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)-3.31%
PT rev (3m)-4.43%
EPS NQ rev (1m)-12.51%
EPS NQ rev (3m)-26.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.94%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-6.44%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 10.73 | ||
| P/S | 1.5 | ||
| P/FCF | 11.06 | ||
| P/OCF | 8 | ||
| P/B | 2.62 | ||
| P/tB | 19.31 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)3.27
EY9.18%
EPS(NY)3.32
Fwd EY9.32%
FCF(TTM)3.22
FCFY9.04%
OCF(TTM)4.45
OCFY12.5%
SpS23.78
BVpS13.61
TBVpS1.84
PEG (NY)N/A
PEG (5Y)0.59
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 | 2.81 |
F-Score6
WACC8.49%
ROIC/WACC1.68
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-8.89%
EPS Next 2Y-1.33%
EPS Next 3Y3.9%
EPS Next 5Y1.68%
Revenue 1Y (TTM)0.95%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-6.49%
Revenue Next Year-2.24%
Revenue Next 2Y1.4%
Revenue Next 3Y2.25%
Revenue Next 5Y1.79%
EBIT growth 1Y1.97%
EBIT growth 3Y32.07%
EBIT growth 5Y16.16%
EBIT Next Year28.52%
EBIT Next 3Y13.4%
EBIT Next 5Y8%
FCF growth 1Y46.25%
FCF growth 3Y9.99%
FCF growth 5Y4.73%
OCF growth 1Y29.73%
OCF growth 3Y12.39%
OCF growth 5Y3.98%