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SLB

SchlumbergerNYSE:SLB Stock Report

Market Cap

US$40.6b

7D

2.5%

1Y

82.2%

Updated

25 Sep, 2021

Data

Company Financials +
SLB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance3/6
Financial Health2/6
Dividends3/6

SLB Overview

Schlumberger Limited supplies technology for reservoir characterization, drilling, production, and processing to the oil and gas industry worldwide.

Schlumberger Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Schlumberger
Historical stock prices
Current Share PriceUS$29.01
52 Week HighUS$13.70
52 Week LowUS$36.87
Beta2.41
1 Month Change3.13%
3 Month Change-13.01%
1 Year Change82.22%
3 Year Change-52.38%
5 Year Change-63.11%
Change since IPO135.61%

Recent News & Updates

Jul 30

Schlumberger Ltd.: A Solid Second Quarter And Back To Healthy Margins

The World's top oilfield services provider came out with second-quarter 2021 earnings of $0.30 per share, beating the analysts' expectations. Schlumberger is clearly enjoying the benefits of a recent attempt to restructure and slim down its business. I recommend accumulating SLB on any weakness below $27.

Jul 07

Schlumberger Stock: Recovering With Oil Market

Schlumberger’s market capitalization is $43.6 billion. After a 75% dividend cut amid 2020 oil price carnage, its dividend yield is currently 1.6%. The company has refined its focus to international operations and been awarded multi-year contracts. Schlumberger expects double-digit free cash flow growth, which it will use for debt reduction.

May 28

Schlumberger to redeem 100% of outstanding 3.300% senior notes due 2021

Schlumberger's (SLB) indirect wholly-owned subsidiary Schlumberger Investment plans to redeem notes with an outstanding principal amount of $664M.Redemption is for the entire outstanding principal amount of SISA's 3.300% senior notes due 2021.The redemption date for the notes is June 28.The notes will be redeemed on the redemption date at a redemption price for the notes equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest on the Notes from the last interest payment date to, but excluding,

Apr 26

Schlumberger adds ex-Orsted Wind CEO Leupold to board

Schlumberger ([[SLB]] +2.9%) extends last Friday's post-earnings gain after naming former Orsted Wind Power CEO Samuel Leupold to its board, as it implements its strategy to deploy sustainable technologies, according to an 8-K filing.Leupold was CEO of Orsted Wind Power during 2013-18, as the group became one of the world's

Shareholder Returns

SLBUS Energy ServicesUS Market
7D2.5%2.2%0.1%
1Y82.2%81.7%35.3%

Return vs Industry: SLB matched the US Energy Services industry which returned 81.7% over the past year.

Return vs Market: SLB exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is SLB's price volatile compared to industry and market?
SLB volatility
SLB Beta2.41
Industry Beta2.41
Market Beta1

Stable Share Price: SLB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SLB's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192686,000Olivier Le Peuchhttps://www.slb.com

Schlumberger Limited supplies technology for reservoir characterization, drilling, production, and processing to the oil and gas industry worldwide. It operates in four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company offers reservoir interpretation and data processing services; open and cased-hole, and slickline services; exploration and production pressure and flow-rate measurement services; tubing-conveyed perforating services; integrated production systems; software, consulting, information management, and IT infrastructure services; reservoir characterization, field development planning, and production enhancement consulting services; and petro technical data services and training solutions.

Schlumberger Fundamentals Summary

How do Schlumberger's earnings and revenue compare to its market cap?
SLB fundamental statistics
Market CapUS$40.57b
Earnings (TTM)US$1.02b
Revenue (TTM)US$21.65b

39.7x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLB income statement (TTM)
RevenueUS$21.65b
Cost of RevenueUS$18.73b
Gross ProfitUS$2.92b
ExpensesUS$1.90b
EarningsUS$1.02b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 22, 2021

Earnings per share (EPS)0.73
Gross Margin13.49%
Net Profit Margin4.72%
Debt/Equity Ratio120.4%

How did SLB perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

68%

Payout Ratio

Valuation

Is Schlumberger undervalued compared to its fair value and its price relative to the market?

26.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLB ($29.01) is trading below our estimate of fair value ($39.36)

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


Price To Earnings Ratio

PE vs Industry: SLB is poor value based on its PE Ratio (39.7x) compared to the US Energy Services industry average (30.6x).

PE vs Market: SLB is poor value based on its PE Ratio (39.7x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: SLB is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SLB is overvalued based on its PB Ratio (3.2x) compared to the US Energy Services industry average (1x).


Future Growth

How is Schlumberger forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLB's forecast earnings growth (27.1% per year) is above the savings rate (2%).

Earnings vs Market: SLB's earnings (27.1% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: SLB's revenue (10.9% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SLB's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLB's Return on Equity is forecast to be high in 3 years time (23.8%)


Past Performance

How has Schlumberger performed over the past 5 years?

-40.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLB has high quality earnings.

Growing Profit Margin: SLB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SLB has become profitable over the past 5 years, growing earnings by -40.4% per year.

Accelerating Growth: SLB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SLB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-49.7%).


Return on Equity

High ROE: SLB's Return on Equity (8.2%) is considered low.


Financial Health

How is Schlumberger's financial position?


Financial Position Analysis

Short Term Liabilities: SLB's short term assets ($12.1B) exceed its short term liabilities ($8.8B).

Long Term Liabilities: SLB's short term assets ($12.1B) do not cover its long term liabilities ($19.1B).


Debt to Equity History and Analysis

Debt Level: SLB's debt to equity ratio (120.4%) is considered high.

Reducing Debt: SLB's debt to equity ratio has increased from 50.4% to 120.4% over the past 5 years.

Debt Coverage: SLB's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: SLB's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Dividend

What is Schlumberger current dividend yield, its reliability and sustainability?

1.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLB's dividend (1.72%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: SLB's dividend (1.72%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: SLB's dividend payments have been volatile in the past 10 years.

Growing Dividend: SLB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.2%), SLB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLB's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Olivier Le Peuch (57 yo)

2.08yrs

Tenure

US$5,650,084

Compensation

Mr. Olivier Le Peuch has been Chief Executive Officer and Director of Schlumberger Limited since August 1, 2019. Mr. Le Peuch served as Chief Operating Officer at Schlumberger Limited since February 8, 201...


CEO Compensation Analysis

Compensation vs Market: Olivier's total compensation ($USD5.65M) is below average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Olivier's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SLB's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: SLB's board of directors are not considered experienced ( 2 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.


Top Shareholders

Company Information

Schlumberger Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Schlumberger Limited
  • Ticker: SLB
  • Exchange: NYSE
  • Founded: 1926
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$40.569b
  • Shares outstanding: 1.40b
  • Website: https://www.slb.com

Number of Employees


Location

  • Schlumberger Limited
  • 5599 San Felipe
  • 17th Floor
  • Houston
  • Texas
  • 77056
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:18
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.