SLB LTD (SLB) Stock Fundamental Analysis
USA - NYSE:SLB - AN8068571086 - Common Stock
36.16 USD
+0.33 (+0.92%)
36.2 USD
+0.04 (+0.11%)
We assign a fundamental rating of 5 out of 10 to SLB. SLB was compared to 60 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SLB was profitable.
SLB had a positive operating cash flow in the past year.
Of the past 5 years SLB 4 years were profitable.
SLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SLB (8.39%) is better than 81.67% of its industry peers.
The Return On Equity of SLB (20.16%) is better than 88.33% of its industry peers.
The Return On Invested Capital of SLB (14.23%) is better than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SLB is above the industry average of 7.87%.
The last Return On Invested Capital (14.23%) for SLB is above the 3 year average (12.63%), which is a sign of increasing profitability.
| 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 85.00% of its industry peers.
SLB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.23%, SLB is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
SLB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.29%, SLB is doing worse than 70.00% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SLB is creating some value.
SLB has less shares outstanding than it did 1 year ago.
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 2.88 indicates that SLB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SLB (2.88) is better than 76.67% of its industry peers.
SLB has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as SLB would need 2.85 years to pay back of all of its debts.
SLB has a better Debt to FCF ratio (2.85) than 68.33% 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's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. SLB is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.74
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.31 indicates that SLB should not have too much problems paying its short term obligations.
SLB has a Current ratio of 1.31. This is in the lower half of the industry: SLB underperforms 78.33% of its industry peers.
A Quick Ratio of 0.98 indicates that SLB may have some problems paying its short term obligations.
With a Quick ratio value of 0.98, SLB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for SLB have decreased by -8.36% in the last year.
The Earnings Per Share has been growing by 18.33% on average over the past years. This is quite good.
Looking at the last year, SLB shows a decrease in Revenue. The Revenue has decreased by -2.08% in the last year.
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
Based on estimates for the next years, SLB will show a small growth in Earnings Per Share. The EPS will grow by 1.65% on average per year.
SLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.86% yearly.
EPS Next Y-14.41%
EPS Next 2Y-6.5%
EPS Next 3Y-0.56%
EPS Next 5Y1.65%
Revenue Next Year-2.11%
Revenue Next 2Y1.2%
Revenue Next 3Y2.11%
Revenue Next 5Y1.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.78, the valuation of SLB can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SLB indicates a rather cheap valuation: SLB is cheaper than 85.00% of the companies listed in the same industry.
SLB is valuated cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.13, SLB is valued correctly.
SLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. SLB is cheaper than 85.00% of the companies in the same industry.
SLB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 12.13 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SLB.
Based on the Price/Free Cash Flow ratio, SLB is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.25 | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
SLB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-6.5%
EPS Next 3Y-0.56%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
SLB's Dividend Yield is rather good when compared to the industry average which is at 3.00. SLB pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SLB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
5.2 History
The dividend of SLB decreases each year by -11.53%.
SLB has paid a dividend for at least 10 years, which is 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-6.5%
EPS Next 3Y-0.56%
36.16
+0.33 (+0.92%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.03%
Inst Owner Change0.25%
Ins Owners0.18%
Ins Owner Change0.4%
Market Cap54.02B
Revenue(TTM)35.25B
Net Income(TTM)4.09B
Analysts83.23
Price Target46.11 (27.52%)
Short Float %2.49%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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)-0.41%
PT rev (3m)-3.46%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-6.06%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 12.13 | ||
| P/S | 1.52 | ||
| P/FCF | 11.25 | ||
| P/OCF | 8.13 | ||
| P/B | 2.66 | ||
| P/tB | 19.64 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)3.07
EY8.49%
EPS(NY)2.98
Fwd EY8.24%
FCF(TTM)3.22
FCFY8.89%
OCF(TTM)4.45
OCFY12.29%
SpS23.75
BVpS13.59
TBVpS1.84
PEG (NY)N/A
PEG (5Y)0.64
Graham Number30.64
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%
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-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 | 2.88 |
F-Score6
WACC8.18%
ROIC/WACC1.74
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-14.41%
EPS Next 2Y-6.5%
EPS Next 3Y-0.56%
EPS Next 5Y1.65%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-2.52%
Revenue Next Year-2.11%
Revenue Next 2Y1.2%
Revenue Next 3Y2.11%
Revenue Next 5Y1.86%
EBIT growth 1Y1.97%
EBIT growth 3Y32.07%
EBIT growth 5Y16.16%
EBIT Next Year28.43%
EBIT Next 3Y13.2%
EBIT Next 5Y7.98%
FCF growth 1Y46.25%
FCF growth 3Y9.99%
FCF growth 5Y4.73%
OCF growth 1Y29.73%
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 8 / 10.
What is the earnings growth outlook for SLB LTD?
The Earnings per Share (EPS) of SLB LTD (SLB) is expected to decline by -14.41% 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 38%.