Core Laboratories (NYSE:CLB) - Share price, News & Analysis

Q: What is the Fair Price of CLB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CLB ($16.35) is trading below our estimate of [[fair value]] ($25.86)

CLB fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	1/6
Financial Health	3/6
Dividends	0/6

CLB Stock Overview

Core Laboratories N.V. provides reservoir description and production enhancement services and products to the oil and gas industry in the United States, Canada, and internationally.

Rewards

Trading at 36.8% below our estimate of its fair value

Earnings are forecast to grow 73.05% per year

Risk Analysis

Debt is not well covered by operating cash flow

Profit margins (1.8%) are lower than last year (7.4%)

Core Laboratories Competitors

Select Energy Services

NYSE:WTTR

US$769.5m

Solaris Oilfield Infrastructure

NYSE:SOI

US$509.0m

Archrock

NYSE:AROC

US$1.2b

RPC

NYSE:RES

US$1.6b

Price History & Performance

Summary of all time highs, changes and price drops for Core Laboratories
Historical stock prices
Current Share Price	US$16.35
52 Week High	US$35.83
52 Week Low	US$15.21
Beta	2.59
1 Month Change	-12.71%
3 Month Change	-40.48%
1 Year Change	-46.11%
3 Year Change	-58.94%
5 Year Change	-82.40%
Change since IPO	445.00%

Recent News & Updates

Aug 04

Core Laboratories goes ex-dividend tomorrow

Core Laboratories (NYSE:CLB) had declared $0.01/share quarterly dividend, in line with previous. Payable Aug. 29; for shareholders of record Aug. 8; ex-div Aug. 5. See CLB Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 18

Here's Why Core Laboratories (NYSE:CLB) Has A Meaningful Debt Burden

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

	CLB	US Energy Services	US Market
7D	-13.7%	-6.1%	1.0%
1Y	-46.1%	22.2%	-12.9%

Return vs Industry: CLB underperformed the US Energy Services industry which returned 22.2% over the past year.

Return vs Market: CLB underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is CLB's price volatile compared to industry and market?
CLB volatility
CLB Average Weekly Movement	9.0%
Energy Services Industry Average Movement	9.6%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CLB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CLB's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1936	3,600	Larry Bruno	https://www.corelab.com

Core Laboratories N.V. provides reservoir description and production enhancement services and products to the oil and gas industry in the United States, Canada, and internationally. It operates through Reservoir Description and Production Enhancement segments. The Reservoir Description segment includes the characterization of petroleum reservoir rock, reservoir fluid, and gas samples to enhance production and improve recovery of oil and gas from its clients' reservoirs.

Core Laboratories Fundamentals Summary

How do Core Laboratories's earnings and revenue compare to its market cap?
CLB fundamental statistics
Market Cap	US$757.41m
Earnings (TTM)	US$8.74m
Revenue (TTM)	US$479.32m

86.7x

P/E Ratio

1.6x

P/S Ratio

Is CLB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CLB income statement (TTM)
Revenue	US$479.32m
Cost of Revenue	US$384.81m
Gross Profit	US$94.51m
Other Expenses	US$85.77m
Earnings	US$8.74m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.19
Gross Margin	19.72%
Net Profit Margin	1.82%
Debt/Equity Ratio	107.6%

How did CLB perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

21%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CLB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CLB?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CLB. This is calculated by dividing CLB's market cap by their current preferred multiple.
What is CLB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$757.41m

CLB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	19.4x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does CLB's PE Ratio compare to its peers?

CLB PE Ratio vs Peers

The above table shows the PE ratio for CLB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.4x
WTTR Select Energy Services	39.4x	87.8%	US$769.5m
SOI Solaris Oilfield Infrastructure	36.3x	61.0%	US$509.0m
AROC Archrock	37.1x	15.8%	US$1.2b
RES RPC	19.7x	27.2%	US$1.6b
CLB Core Laboratories	86.7x	73.0%	US$757.4m

Price-To-Earnings vs Peers: CLB is expensive based on its Price-To-Earnings Ratio (86.7x) compared to the peer average (27.4x).

Price to Earnings Ratio vs Industry

How does CLB's PE Ratio compare vs other companies in the US Energy Services Industry?

Price-To-Earnings vs Industry: CLB is expensive based on its Price-To-Earnings Ratio (86.7x) compared to the US Energy Services industry average (34x)

Price to Earnings Ratio vs Fair Ratio

What is CLB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CLB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	86.7x
Fair PE Ratio	41.8x

Price-To-Earnings vs Fair Ratio: CLB is expensive based on its Price-To-Earnings Ratio (86.7x) compared to the estimated Fair Price-To-Earnings Ratio (41.8x).

Share Price vs Fair Value

What is the Fair Price of CLB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CLB ($16.35) is trading below our estimate of fair value ($25.86)

Significantly Below Fair Value: CLB is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Core Laboratories forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

73.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLB's forecast earnings growth (73% per year) is above the savings rate (1.9%).

Earnings vs Market: CLB's earnings (73% per year) are forecast to grow faster than the US market (12.8% per year).

High Growth Earnings: CLB's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CLB's revenue (7.3% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: CLB's revenue (7.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CLB's Return on Equity is forecast to be high in 3 years time (28.6%)

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Past Performance

How has Core Laboratories performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-35.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CLB has high quality earnings.

Growing Profit Margin: CLB's current net profit margins (1.8%) are lower than last year (7.4%).

Past Earnings Growth Analysis

Earnings Trend: CLB's earnings have declined by 35.7% per year over the past 5 years.

Accelerating Growth: CLB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CLB had negative earnings growth (-73.6%) over the past year, making it difficult to compare to the Energy Services industry average (140.2%).

Return on Equity

High ROE: CLB's Return on Equity (5.2%) is considered low.

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Financial Health

How is Core Laboratories's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CLB's short term assets ($199.6M) exceed its short term liabilities ($95.9M).

Long Term Liabilities: CLB's short term assets ($199.6M) do not cover its long term liabilities ($307.9M).

Debt to Equity History and Analysis

Debt Level: CLB's net debt to equity ratio (98.3%) is considered high.

Reducing Debt: CLB's debt to equity ratio has reduced from 154.9% to 107.6% over the past 5 years.

Debt Coverage: CLB's debt is not well covered by operating cash flow (13.4%).

Interest Coverage: CLB's interest payments on its debt are well covered by EBIT (3.1x coverage).

Balance Sheet

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Dividend

What is Core Laboratories's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CLB's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: CLB's dividend (0.24%) is low compared to the top 25% of dividend payers in the US market (4.09%).

Stability and Growth of Payments

Stable Dividend: CLB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CLB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: CLB is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: CLB is not paying a notable dividend for the US market.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure

CEO

Larry Bruno (62 yo)

4.5yrs

Tenure

US$6,548,130

Compensation

Mr. Lawrence V. Bruno, also known as Larry, serves as Chairman of Supervisory Board and Chief Exertive Officer at Core Laboratories N.V. since May 20, 2020. He has been Supervisory Director of Core Laborat...

CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD6.55M) is above average for companies of similar size in the US market ($USD3.94M).

Compensation vs Earnings: Larry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: CLB's management team is considered experienced (4.2 years average tenure).

Board Members

Experienced Board: CLB's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31