SLB LTD (SLB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SLB - AN8068571086 - Common Stock
35.9 USD
+0.19 (+0.53%)
35.52 USD
-0.38 (-1.06%)
Taking everything into account, SLB scores 5 out of 10 in our fundamental rating. SLB was compared to 60 industry peers in the Energy Equipment & Services industry. SLB scores excellent on profitability, but there are some minor concerns on its financial health. SLB is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SLB was profitable.
In the past year SLB had a positive cash flow from operations.
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
The Return On Assets of SLB (6.62%) is better than 73.33% of its industry peers.
Looking at the Return On Equity, with a value of 14.22%, SLB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.64%, SLB belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SLB is above the industry average of 7.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 14.22% | ||
| ROIC | 11.64% |
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's Profit Margin of 10.34% is fine compared to the rest of the industry. SLB outperforms 80.00% of its industry peers.
SLB's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 16.78%, SLB is doing good in the industry, outperforming 78.33% of the companies in the same industry.
SLB's Operating Margin has improved in the last couple of years.
SLB has a Gross Margin of 19.75%. This is in the lower half of the industry: SLB underperforms 71.67% of its industry peers.
SLB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.78% | ||
| PM (TTM) | 10.34% | ||
| GM | 19.75% |
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
SLB has more shares outstanding than it did 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 2.65 indicates that SLB is not a great score, but indicates only limited risk for bankruptcy at the moment.
SLB has a Altman-Z score of 2.65. This is in the better half of the industry: SLB outperforms 73.33% of its industry peers.
The Debt to FCF ratio of SLB is 3.12, which is a good value as it means it would take SLB, 3.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.12, SLB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SLB has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, SLB is in line with its industry, outperforming 48.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.12 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.41
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.39 indicates that SLB should not have too much problems paying its short term obligations.
SLB has a Current ratio of 1.39. This is in the lower half of the industry: SLB underperforms 75.00% of its industry peers.
SLB has a Quick Ratio of 1.01. This is a normal value and indicates that SLB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SLB (1.01) is worse than 78.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
SLB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.36%.
SLB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.33% yearly.
SLB shows a decrease in Revenue. In the last year, the revenue decreased by -2.08%.
The Revenue has been growing slightly by 1.97% on average over the past years.
EPS 1Y (TTM)-8.36%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%-22.47%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-2.52%
3.2 Future
The Earnings Per Share is expected to grow by 0.92% on average over the next years.
SLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.36% yearly.
EPS Next Y-14.16%
EPS Next 2Y-6.3%
EPS Next 3Y-0.08%
EPS Next 5Y0.92%
Revenue Next Year-1.98%
Revenue Next 2Y1.46%
Revenue Next 3Y2.21%
Revenue Next 5Y2.36%
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 11.69, which indicates a very decent valuation of SLB.
Based on the Price/Earnings ratio, SLB is valued cheaper than 86.67% 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 25.98.
With a Price/Forward Earnings ratio of 11.99, the valuation of SLB can be described as very reasonable.
SLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. SLB is cheaper than 86.67% of the companies in the same industry.
SLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 11.99 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.12 | ||
| EV/EBITDA | 7.31 |
4.3 Compensation for Growth
SLB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-6.3%
EPS Next 3Y-0.08%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 3.24%.
SLB's Dividend Yield is rather good when compared to the industry average which is at 3.03. SLB pays more dividend than 85.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, SLB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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 42.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.94%
EPS Next 2Y-6.3%
EPS Next 3Y-0.08%
35.9
+0.19 (+0.53%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.03%
Inst Owner Change8.04%
Ins Owners0.18%
Ins Owner Change-2.1%
Market Cap53.63B
Revenue(TTM)35.25B
Net Income(TTM)3.65B
Analysts83.75
Price Target45.74 (27.41%)
Short Float %2.85%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend1.08
Dividend Growth(5Y)-11.53%
DP42.94%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.25%
Min EPS beat(2)0.83%
Max EPS beat(2)3.67%
EPS beat(4)3
Avg EPS beat(4)0.64%
Min EPS beat(4)-3.55%
Max EPS beat(4)3.67%
EPS beat(8)5
Avg EPS beat(8)0.71%
EPS beat(12)9
Avg EPS beat(12)1.17%
EPS beat(16)13
Avg EPS beat(16)3.68%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)-0.18%
Revenue beat(4)1
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-2.2%
Max Revenue beat(4)0.1%
Revenue beat(8)1
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-0.65%
Revenue beat(16)6
Avg Revenue beat(16)0.3%
PT rev (1m)-0.8%
PT rev (3m)-1.39%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 11.99 | ||
| P/S | 1.52 | ||
| P/FCF | 13.12 | ||
| P/OCF | 9.13 | ||
| P/B | 2.09 | ||
| P/tB | 15.15 | ||
| EV/EBITDA | 7.31 |
EPS(TTM)3.07
EY8.55%
EPS(NY)2.99
Fwd EY8.34%
FCF(TTM)2.74
FCFY7.62%
OCF(TTM)3.93
OCFY10.95%
SpS23.59
BVpS17.16
TBVpS2.37
PEG (NY)N/A
PEG (5Y)0.64
Graham Number34.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 14.22% | ||
| ROCE | 14.4% | ||
| ROIC | 11.64% | ||
| ROICexc | 12.76% | ||
| ROICexgc | 31.09% | ||
| OM | 16.78% | ||
| PM (TTM) | 10.34% | ||
| GM | 19.75% | ||
| FCFM | 11.6% |
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%
ROICexgc growth 3Y25.24%
ROICexgc 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-Score5
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.12 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 69.83% | ||
| Cap/Sales | 5.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.33% | ||
| Profit Quality | 112.13% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.65 |
F-Score5
WACC8.24%
ROIC/WACC1.41
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)-8.36%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%-22.47%
EPS Next Y-14.16%
EPS Next 2Y-6.3%
EPS Next 3Y-0.08%
EPS Next 5Y0.92%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-2.52%
Revenue Next Year-1.98%
Revenue Next 2Y1.46%
Revenue Next 3Y2.21%
Revenue Next 5Y2.36%
EBIT growth 1Y-4.67%
EBIT growth 3Y32.07%
EBIT growth 5Y16.16%
EBIT Next Year28.43%
EBIT Next 3Y13.2%
EBIT Next 5Y8.25%
FCF growth 1Y23.4%
FCF growth 3Y9.99%
FCF growth 5Y4.73%
OCF growth 1Y12.34%
OCF growth 3Y12.39%
OCF growth 5Y3.98%
SLB LTD / SLB FAQ
What is the ChartMill fundamental rating of SLB LTD (SLB) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SLB.
What is the valuation status of SLB LTD (SLB) stock?
ChartMill assigns a valuation rating of 6 / 10 to SLB LTD (SLB). This can be considered as Fairly Valued.
What is the profitability of SLB stock?
SLB LTD (SLB) has a profitability rating of 7 / 10.
What is the earnings growth outlook for SLB LTD?
The Earnings per Share (EPS) of SLB LTD (SLB) is expected to decline by -14.16% in the next year.
Is the dividend of SLB LTD sustainable?
The dividend rating of SLB LTD (SLB) is 5 / 10 and the dividend payout ratio is 42.94%.