SCHLUMBERGER LTD (SLB)
AN8068571086 - Common Stock
We assign a fundamental rating of 5 out of 10 to SLB. 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 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.
In multiple years SLB reported negative net income over the last 5 years.
In the past 5 years SLB always reported a positive cash flow from operatings.
1.2 Ratios
SLB has a better Return On Assets (8.76%) than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 20.81%, SLB belongs to the top 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 Rank | Sector 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 Profit Margin of 12.68%. This is amongst the best in the industry. SLB outperforms 83.08% 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 16.56%, SLB is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
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.
SLB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for SLB has been increased compared to 1 year ago.
Compared to 5 years ago, SLB has more shares outstanding
SLB has a better debt/assets ratio than last year.
2.2 Solvency
SLB has an Altman-Z score of 3.15. This indicates that SLB is financially healthy and has little risk of bankruptcy at the moment.
SLB's Altman-Z score of 3.15 is fine compared to the rest of the industry. SLB outperforms 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.
SLB's Debt to FCF ratio of 2.55 is fine compared to the rest of the industry. SLB outperforms 75.38% 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 44.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 3.15 |
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's Current ratio of 1.32 is on the low side compared to the rest of the industry. SLB is outperformed by 76.92% of its industry peers.
A Quick Ratio of 1.00 indicates that SLB may have some problems paying its short term obligations.
SLB's Quick ratio of 1.00 is on the low side compared to the rest of the industry. SLB is outperformed by 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1 |
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.
SLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.19% yearly.
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
Based on estimates for the next years, SLB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.16% on average per year.
Based on estimates for the next years, SLB will show a quite strong growth in Revenue. The Revenue will grow by 9.53% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.70 indicates a correct valuation of SLB.
SLB's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.80. SLB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.01, the valuation of SLB can be described as correct.
SLB's Price/Forward Earnings ratio is in line with the industry average.
SLB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLB is valued a bit more expensive than 70.77% of the companies in the same industry.
SLB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.23 | ||
| EV/EBITDA | 10.24 |
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.
A more expensive valuation may be justified as SLB's earnings are expected to grow with 17.18% in the coming years.
PEG (NY)0.87
PEG (5Y)1.29
EPS Next 2Y18.38%
EPS Next 3Y17.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, SLB has a reasonable but not impressive dividend return.
SLB's Dividend Yield is a higher than the industry average which is at 2.54.
SLB's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of SLB decreases each year by -14.31%.
SLB has been paying a dividend for at least 10 years, so it has 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
31.34% of the earnings are spent on dividend by SLB. This is a low number and sustainable payout ratio.
DP31.34%
EPS Next 2Y18.38%
EPS Next 3Y17.18%
SCHLUMBERGER LTD
NYSE:SLB (4/19/2024, 10:19:08 AM)
49.94
-1 (-1.96%)
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 Cap71.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 14.01 | ||
| 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)0.87
PEG (5Y)1.29
Profitability
| Industry Rank | Sector 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 Rank | Sector 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