SCHLUMBERGER LTD (SLB) Stock Fundamental Analysis
NYSE:SLB - New York Stock Exchange, Inc. - AN8068571086 - Common Stock - Currency: USD
Overall SLB gets a fundamental rating of 6 out of 10. We evaluated SLB against 63 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. SLB has a decent growth rate and is not valued too expensively.
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.
SLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.55%, SLB belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.47%, SLB belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
SLB's Return On Invested Capital of 15.10% is amongst the best of the industry. SLB outperforms 92.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SLB is above the industry average of 8.44%.
The last Return On Invested Capital (15.10%) for SLB is above the 3 year average (12.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.55% | ||
| ROE | 21.47% | ||
| ROIC | 15.1% |
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
The Profit Margin of SLB (11.62%) is better than 77.78% 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 17.59%, SLB belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
SLB's Operating Margin has improved in the last couple of years.
SLB's Gross Margin of 20.63% is on the low side compared to the rest of the industry. SLB is outperformed by 68.25% of its industry peers.
In the last couple of years the Gross Margin of SLB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.59% | ||
| PM (TTM) | 11.62% | ||
| GM | 20.63% |
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
SLB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SLB has less shares outstanding
Compared to 5 years ago, SLB has more shares outstanding
Compared to 1 year ago, SLB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.74 indicates that SLB is not a great score, but indicates only limited risk for bankruptcy at the moment.
SLB has a better Altman-Z score (2.74) than 73.02% of its industry peers.
The Debt to FCF ratio of SLB is 2.80, which is a good value as it means it would take SLB, 2.80 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.80, SLB is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that SLB is somewhat dependend on debt financing.
The Debt to Equity ratio of SLB (0.54) is worse than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.68
WACC9.01%
2.3 Liquidity
A Current Ratio of 1.24 indicates that SLB should not have too much problems paying its short term obligations.
The Current ratio of SLB (1.24) is worse than 82.54% of its industry peers.
SLB has a Quick Ratio of 1.24. 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 worse Quick ratio (0.93) than 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
SLB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.68%, which is quite good.
Measured over the past years, SLB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.33% on average per year.
SLB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.76%.
The Revenue has been growing slightly by 1.97% on average over the past years.
EPS 1Y (TTM)8.68%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%-4%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-2.49%
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 1.46% on average per year.
SLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.68% yearly.
EPS Next Y-6.33%
EPS Next 2Y0.18%
EPS Next 3Y4.25%
EPS Next 5Y1.46%
Revenue Next Year-2.73%
Revenue Next 2Y0.38%
Revenue Next 3Y1.57%
Revenue Next 5Y0.68%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.04, the valuation of SLB can be described as reasonable.
Based on the Price/Earnings ratio, SLB is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SLB to the average of the S&P500 Index (27.30), we can say SLB is valued rather cheaply.
SLB is valuated reasonably with a Price/Forward Earnings ratio of 10.90.
SLB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SLB is cheaper than 73.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SLB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
SLB's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLB indicates a somewhat cheap valuation: SLB is cheaper than 63.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
SLB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y0.18%
EPS Next 3Y4.25%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.54, SLB pays a better dividend. On top of this SLB pays more dividend than 84.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, SLB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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 37.28% of its income as dividend. This is a sustainable payout ratio.
DP37.28%
EPS Next 2Y0.18%
EPS Next 3Y4.25%
37.31
+0.66 (+1.8%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.65%
Inst Owner Change-0.01%
Ins Owners0.2%
Ins Owner Change5.73%
Market Cap50.75B
Analysts82.35
Price Target48.22 (29.24%)
Short Float %4.57%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend1.08
Dividend Growth(5Y)-11.53%
DP37.28%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.97%
Min EPS beat(2)-3.55%
Max EPS beat(2)1.61%
EPS beat(4)2
Avg EPS beat(4)-0.01%
Min EPS beat(4)-3.55%
Max EPS beat(4)1.93%
EPS beat(8)5
Avg EPS beat(8)0.37%
EPS beat(12)9
Avg EPS beat(12)3.88%
EPS beat(16)13
Avg EPS beat(16)4.33%
Revenue beat(2)1
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)0.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-2.2%
Max Revenue beat(4)0.1%
Revenue beat(8)1
Avg Revenue beat(8)-1.19%
Revenue beat(12)4
Avg Revenue beat(12)0.38%
Revenue beat(16)7
Avg Revenue beat(16)0.28%
PT rev (1m)-1.16%
PT rev (3m)-10.03%
EPS NQ rev (1m)-1.37%
EPS NQ rev (3m)-10.34%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-9.15%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-8.96%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-5.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.9 | ||
| P/S | 1.41 | ||
| P/FCF | 10.14 | ||
| P/OCF | 7.32 | ||
| P/B | 2.6 | ||
| P/tB | 26.5 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)3.38
EY9.06%
EPS(NY)3.42
Fwd EY9.17%
FCF(TTM)3.68
FCFY9.86%
OCF(TTM)5.1
OCFY13.67%
SpS26.52
BVpS14.35
TBVpS1.41
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.55% | ||
| ROE | 21.47% | ||
| ROCE | 18.68% | ||
| ROIC | 15.1% | ||
| ROICexc | 17.05% | ||
| ROICexgc | 41.13% | ||
| OM | 17.59% | ||
| PM (TTM) | 11.62% | ||
| GM | 20.63% | ||
| FCFM | 13.88% |
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-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.8 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 75.42% | ||
| Cap/Sales | 5.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.9% | ||
| Profit Quality | 119.45% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.74 |
F-Score7
WACC9.01%
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)8.68%
EPS 3Y38.63%
EPS 5Y18.33%
EPS Q2Q%-4%
EPS Next Y-6.33%
EPS Next 2Y0.18%
EPS Next 3Y4.25%
EPS Next 5Y1.46%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-2.49%
Revenue Next Year-2.73%
Revenue Next 2Y0.38%
Revenue Next 3Y1.57%
Revenue Next 5Y0.68%
EBIT growth 1Y10.83%
EBIT growth 3Y32.07%
EBIT growth 5Y16.16%
EBIT Next Year31.34%
EBIT Next 3Y13.31%
EBIT Next 5Y6.73%
FCF growth 1Y128.02%
FCF growth 3Y9.99%
FCF growth 5Y4.73%
OCF growth 1Y76.96%
OCF growth 3Y12.39%
OCF growth 5Y3.98%