SCHLUMBERGER LTD (SLB)

AN8068571086 - Common Stock

49.51  -0.34 (-0.68%)

After market: 49.52 +0.01 (+0.02%)

Fundamental Rating

5

Taking everything into account, SLB scores 5 out of 10 in our fundamental rating. SLB was compared to 65 industry peers in the Energy Equipment & Services industry. SLB has an excellent profitability rating, but there are some minor concerns on its financial health. SLB is not valued too expensively and it also shows a decent growth rate.



7

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.
The reported net income has been mixed in the past 5 years: SLB reported negative net income in multiple years.
In the past 5 years SLB always reported a positive cash flow from operatings.

1.2 Ratios

With a decent Return On Assets value of 8.76%, SLB is doing good in the industry, outperforming 80.00% of the companies in the same industry.
With an excellent Return On Equity value of 20.81%, SLB belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
SLB's Return On Invested Capital of 12.92% is amongst the best of the industry. SLB outperforms 83.08% of its industry peers.
SLB had an Average Return On Invested Capital over the past 3 years of 10.33%. This is in line with the industry average of 8.59%.
The last Return On Invested Capital (12.92%) for SLB is above the 3 year average (10.33%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.76%
ROE 20.81%
ROIC 12.92%
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 (12.68%) than 83.08% of its industry peers.
SLB's Profit Margin has improved in the last couple of years.
SLB's Operating Margin of 16.56% is fine compared to the rest of the industry. SLB outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of SLB has grown nicely.
The Gross Margin of SLB (19.80%) is worse than 67.69% of its industry peers.
In the last couple of years the Gross Margin of SLB has grown nicely.
Industry RankSector Rank
OM 16.56%
PM (TTM) 12.68%
GM 19.8%
OM growth 3Y33.15%
OM growth 5Y11.51%
PM growth 3YN/A
PM growth 5Y14.25%
GM growth 3Y21.58%
GM growth 5Y8.62%

4

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 more shares outstanding
SLB has more shares outstanding than it did 5 years ago.
SLB has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.11 indicates that SLB is not in any danger for bankruptcy at the moment.
The Altman-Z score of SLB (3.11) is better than 73.85% of its industry peers.
The Debt to FCF ratio of SLB is 2.55, which is a good value as it means it would take SLB, 2.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.55, SLB is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
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 (0.54) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 2.55
Altman-Z 3.11
ROIC/WACC1.54
WACC8.4%

2.3 Liquidity

A Current Ratio of 1.32 indicates that SLB should not have too much problems paying its short term obligations.
SLB has a worse Current ratio (1.32) than 76.92% of its industry peers.
SLB has a Quick Ratio of 1.32. This is a bad value and indicates that SLB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.00, SLB is doing worse than 81.54% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 37.16% 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.
The Revenue has grown by 17.96% in the past year. This is quite good.
The Revenue has been growing slightly by 0.19% on average over the past years.
EPS 1Y (TTM)37.16%
EPS 3Y63.83%
EPS 5Y12.9%
EPS growth Q2Q21.13%
Revenue 1Y (TTM)17.96%
Revenue growth 3Y11.97%
Revenue growth 5Y0.19%
Revenue growth Q2Q14.12%

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 14.16% yearly.
The Revenue is expected to grow by 9.53% on average over the next years. This is quite good.
EPS Next Y19.19%
EPS Next 2Y18.38%
EPS Next 3Y17.18%
EPS Next 5Y14.16%
Revenue Next Year12.53%
Revenue Next 2Y11.54%
Revenue Next 3Y10.2%
Revenue Next 5Y9.53%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 16.56, SLB is valued correctly.
SLB's Price/Earnings ratio is a bit cheaper when compared to the industry. SLB is cheaper than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.95, SLB is valued a bit cheaper.
SLB is valuated correctly with a Price/Forward Earnings ratio of 13.89.
SLB's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.40, SLB is valued a bit cheaper.
Industry RankSector Rank
PE 16.56
Fwd PE 13.89

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 70.77% of the companies listed in the same industry.
SLB's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 15.06
EV/EBITDA 10.02

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.
The decent profitability rating of SLB may justify a higher PE ratio.
SLB's earnings are expected to grow with 17.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)1.28
EPS Next 2Y18.38%
EPS Next 3Y17.18%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.21%, SLB has a reasonable but not impressive dividend return.
SLB's Dividend Yield is a higher than the industry average which is at 3.27.
Compared to an average S&P500 Dividend Yield of 2.45, SLB has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.21%

5.2 History

The dividend of SLB decreases each year by -14.31%.
SLB has paid a dividend for at least 10 years, which is 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

SLB pays out 31.34% of its income as dividend. This is a sustainable payout ratio.
DP31.34%
EPS Next 2Y18.38%
EPS Next 3Y17.18%

SCHLUMBERGER LTD

NYSE:SLB (4/22/2024, 7:27:49 PM)

After market: 49.52 +0.01 (+0.02%)

49.51

-0.34 (-0.68%)

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 Cap70.77B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.21%
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)
Max EPS beat(2)
EPS beat(4)
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Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 RankSector Rank
PE 16.56
Fwd PE 13.89
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)0.86
PEG (5Y)1.28
Profitability
Industry RankSector Rank
ROA 8.76%
ROE 20.81%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.56%
PM (TTM) 12.68%
GM 19.8%
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 Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.32
Quick Ratio 1
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)
Growth
EPS 1Y (TTM)37.16%
EPS 3Y63.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.96%
Revenue growth 3Y11.97%
Revenue growth 5Y
Revenue growth 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