SCHLUMBERGER LTD (SLB) Stock Fundamental Analysis
NYSE:SLB - New York Stock Exchange, Inc. - AN8068571086 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SLB. SLB was compared to 62 industry peers in the Energy Equipment & Services industry. While SLB has a great profitability rating, 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
SLB had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 8.55%, SLB belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
SLB's Return On Equity of 21.47% is amongst the best of the industry. SLB outperforms 88.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.10%, SLB belongs to the top of the industry, outperforming 91.94% 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 8.45%.
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 77.42% of its industry peers.
SLB's Profit Margin has improved in the last couple of years.
SLB has a Operating Margin of 17.59%. This is in the better half of the industry: SLB outperforms 79.03% of its industry peers.
In the last couple of years the Operating Margin of SLB has grown nicely.
Looking at the Gross Margin, with a value of 20.63%, SLB is doing worse than 67.74% 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 | 17.59% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SLB is creating some value.
Compared to 1 year ago, SLB has less shares outstanding
The number of shares outstanding for SLB has been increased compared to 5 years ago.
SLB has a better debt/assets ratio than last year.
2.2 Solvency
SLB has an Altman-Z score of 2.72. This is not the best score and indicates that SLB is in the grey zone with still only limited risk for bankruptcy at the moment.
SLB's Altman-Z score of 2.72 is fine compared to the rest of the industry. SLB outperforms 74.19% of its industry peers.
SLB has a debt to FCF ratio of 2.80. This is a good value and a sign of high solvency as SLB would need 2.80 years to pay back of all of its debts.
SLB's Debt to FCF ratio of 2.80 is fine compared to the rest of the industry. SLB outperforms 69.35% 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.
With a Debt to Equity ratio value of 0.54, SLB is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.7
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.24 indicates that SLB should not have too much problems paying its short term obligations.
SLB's Current ratio of 1.24 is on the low side compared to the rest of the industry. SLB is outperformed by 83.87% 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 Quick ratio of 0.93. This is amonst the worse of the industry: SLB underperforms 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.68% over the past year.
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.
The Revenue has been growing slightly by 5.76% in the past year.
Measured over the past years, SLB shows a small growth in Revenue. The Revenue has been growing by 1.97% on average per year.
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
The Earnings Per Share is expected to grow by 1.85% on average over the next years.
Based on estimates for the next years, SLB will show a small growth in Revenue. The Revenue will grow by 0.87% on average per year.
EPS Next Y0.29%
EPS Next 2Y4.38%
EPS Next 3Y6.12%
EPS Next 5Y1.85%
Revenue Next Year-2.54%
Revenue Next 2Y0.59%
Revenue Next 3Y1.5%
Revenue Next 5Y0.87%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.52, the valuation of SLB can be described as very reasonable.
Based on the Price/Earnings ratio, SLB is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
SLB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.05.
Based on the Price/Forward Earnings ratio of 9.57, the valuation of SLB can be described as reasonable.
SLB's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SLB to the average of the S&P500 Index (21.07), we can say SLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 9.57 |
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 62.90% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SLB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.66 | ||
| EV/EBITDA | 6.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SLB may justify a higher PE ratio.
PEG (NY)35.68
PEG (5Y)0.57
EPS Next 2Y4.38%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
SLB has a Yearly Dividend Yield of 3.32%. 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 3.88. SLB pays more dividend than 80.65% of the companies in the same industry.
SLB's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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
37.28% of the earnings are spent on dividend by SLB. This is a low number and sustainable payout ratio.
DP37.28%
EPS Next 2Y4.38%
EPS Next 3Y6.12%
NYSE:SLB (5/16/2025, 9:44:10 AM)
35.55
-0.17 (-0.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.44%
Inst Owner Change2.38%
Ins Owners0.2%
Ins Owner Change5.61%
Market Cap48.35B
Analysts82.35
Price Target48.78 (37.22%)
Short Float %4.64%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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)-8.98%
PT rev (3m)-9.96%
EPS NQ rev (1m)-7.6%
EPS NQ rev (3m)-8.78%
EPS NY rev (1m)-2.72%
EPS NY rev (3m)-2.86%
Revenue NQ rev (1m)-6.54%
Revenue NQ rev (3m)-8.6%
Revenue NY rev (1m)-3.99%
Revenue NY rev (3m)-5.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 9.57 | ||
| P/S | 1.34 | ||
| P/FCF | 9.66 | ||
| P/OCF | 6.97 | ||
| P/B | 2.48 | ||
| P/tB | 25.25 | ||
| EV/EBITDA | 6.48 |
EPS(TTM)3.38
EY9.51%
EPS(NY)3.72
Fwd EY10.45%
FCF(TTM)3.68
FCFY10.35%
OCF(TTM)5.1
OCFY14.34%
SpS26.52
BVpS14.35
TBVpS1.41
PEG (NY)35.68
PEG (5Y)0.57
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 | 2.72 |
F-Score7
WACC8.88%
ROIC/WACC1.7
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 Y0.29%
EPS Next 2Y4.38%
EPS Next 3Y6.12%
EPS Next 5Y1.85%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y16.54%
Revenue growth 5Y1.97%
Sales Q2Q%-2.49%
Revenue Next Year-2.54%
Revenue Next 2Y0.59%
Revenue Next 3Y1.5%
Revenue Next 5Y0.87%
EBIT growth 1Y10.83%
EBIT growth 3Y32.07%
EBIT growth 5Y16.16%
EBIT Next Year39.08%
EBIT Next 3Y15.3%
EBIT Next 5Y7.19%
FCF growth 1Y128.02%
FCF growth 3Y9.99%
FCF growth 5Y4.73%
OCF growth 1Y76.96%
OCF growth 3Y12.39%
OCF growth 5Y3.98%