NYSE:SLB

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Schlumberger's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SLB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.3%

SLB

19.6%

US Energy Services

9.4%

US Market


1 Year Return

-63.9%

SLB

-66.9%

US Energy Services

-6.8%

US Market

Return vs Industry: SLB exceeded the US Energy Services industry which returned -72.5% over the past year.

Return vs Market: SLB underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

SLBIndustryMarket
7 Day15.3%19.6%9.4%
30 Day-5.2%-5.6%-3.9%
90 Day-58.6%-58.2%-16.5%
1 Year-61.8%-63.9%-65.7%-66.9%-4.8%-6.8%
3 Year-76.1%-78.9%-75.4%-78.8%23.4%15.2%
5 Year-78.8%-82.3%-78.7%-82.5%41.3%25.7%

Price Volatility Vs. Market

How volatile is Schlumberger's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

0.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SLB ($15.67) is trading above our estimate of fair value ($13.76)

Significantly Below Fair Value: SLB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SLB is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: SLB is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SLB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SLB is overvalued based on its PB Ratio (0.9x) compared to the US Energy Services industry average (0.3x).


Next Steps

Future Growth

How is Schlumberger forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

103.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: SLB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SLB's is expected to become profitable in the next 3 years.

Revenue vs Market: SLB's revenue is expected to decline over the next 3 years (-3.9% per year).

High Growth Revenue: SLB's revenue is forecast to decline over the next 3 years (-3.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLB's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Schlumberger performed over the past 5 years?

-57.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLB is currently unprofitable.

Growing Profit Margin: SLB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SLB is unprofitable, and losses have increased over the past 5 years at a rate of -57.3% per year.

Accelerating Growth: Unable to compare SLB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SLB is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-34.4%).


Return on Equity

High ROE: SLB has a negative Return on Equity (-41.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is Schlumberger's financial position?


Financial Position Analysis

Short Term Liabilities: SLB's short term assets ($15.5B) exceed its short term liabilities ($13.1B).

Long Term Liabilities: SLB's short term assets ($15.5B) do not cover its long term liabilities ($19.0B).


Debt to Equity History and Analysis

Debt Level: SLB's debt to equity ratio (63.3%) is considered high.

Reducing Debt: SLB's debt to equity ratio has increased from 35.1% to 63.3% over the past 5 years.

Debt Coverage: SLB's debt is well covered by operating cash flow (35.5%).

Interest Coverage: SLB is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

12.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLB's dividend (12.76%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: SLB's dividend (12.76%) is in the top 25% of dividend payers in the US market (5.82%)


Stability and Growth of Payments

Stable Dividend: SLB's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: SLB is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SLB's dividends in 3 years are not forecast to be well covered by earnings (144.4% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Olivier Le Peuch (55yo)

0.67

Tenure

US$19,117,170

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 ($USD19.12M) is above average for companies of similar size in the US market ($USD12.04M).

Compensation vs Earnings: Olivier's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Olivier Le Peuch
CEO & Director0.67yrUS$19.12m0.012% $2.7m
Khaled Al Mogharbel
Executive Vice President of Operations1yrUS$8.63m0.0086% $2.0m
Patrick Arnold Schorn
Executive Vice President of Wells1.92yrsUS$8.91m0.0083% $1.9m
Hinda Gharbi
Executive Vice President of Reservoir & Infrastructure1.17yrsUS$7.48m0.011% $2.5m
Stephane Biguet
Executive VP & CFO0.25yrno data0.0038% $873.4k
Howard Guild
Chief Accounting Officer14.75yrsno data0.0035% $802.5k
Demosthenis Pafitis
Chief Technology Officer0.17yrno datano data
Eric Abecassis
Chief Information Officer3.08yrsno datano data
Simon Farrant
Vice President of Investor Relations6.17yrsno data0.0026% $599.0k
Alexander Juden
Secretary & General Counsel11yrsUS$7.12m0.0085% $1.9m

1.5yrs

Average Tenure

50yo

Average Age

Experienced Management: SLB's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Olivier Le Peuch
CEO & Director0.67yrUS$19.12m0.012% $2.7m
Mark Papa
Non-Executive Chairman0.67yrUS$466.34k0.0013% $294.9k
Henri Seydoux
Independent Director11.25yrsUS$329.18k0.0020% $452.7k
Lubna Al-Olayan
Independent Director9yrsUS$326.68k0.0021% $484.7k
Miguel Galuccio
Director3yrsUS$329.18k0.00083% $189.8k
Leo Reif
Independent Director13.25yrsUS$357.27k0.0023% $519.0k
Patrick de La Chevardière
Independent Director0.50yrUS$35.05k0.00016% $36.6k
Jeffrey Sheets
Independent Director0.50yrUS$35.05k0.00016% $36.6k
Tatiana Mitrova
Independent Director1.5yrsUS$316.68k0.00043% $98.3k

1.5yrs

Average Tenure

61yo

Average Age

Experienced Board: SLB's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SLB 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 company bio, 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$22.863b
  • Shares outstanding: 1.39b
  • Website: https://www.slb.com

Number of Employees


Location

  • Schlumberger Limited
  • 5599 San Felipe
  • Houston
  • Texas
  • 77056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
SCLLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
SLBSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
SLB NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
SLBBASE (Buenos Aires Stock Exchange)YesCommon StockARARSJan 1968
SLBENXTPA (Euronext Paris)YesCommon StockFREURJan 1968
SCLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
SLBZBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1968
SLBBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REPR 1 ORD USD0.01ARARSJul 2001
SLBG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLAug 2012

Biography

Schlumberger Limited supplies technology for reservoir characterization, drilling, production, and processing to the oil and gas industry worldwide. The company’s Reservoir Characterization segment 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. Its Drilling segment designs, manufactures, and markets roller cone and fixed cutter drill bits; supplies drilling fluid systems, fluid systems and specialty equipment, production technology solutions, and engineered managed pressure and underbalanced drilling solutions; and offers environmental services and products. This segment also provides drilling and measurement, land drilling rigs, and related support services; and supplies well planning and drilling, engineering, supervision, logistics, procurement, and contracting services, as well as drilling rig management services. The company’s Production segment offers well services; coiled tubing equipment; hydraulic fracturing, multistage completions, perforating, coiled tubing equipment, and services; well completion services and equipment; artificial lift production equipment and optimization services; and production management services. Its Cameron segment offers integrated subsea production systems; drilling equipment and services; onshore and offshore platform wellhead systems and processing solutions; and valve and process systems. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 03:50
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.