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

Fundamentals

Established dividend payer and fair value.


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


Market Performance


7 Day Return

2.6%

SLB

0.4%

US Energy Services

1.8%

US Market


1 Year Return

-45.4%

SLB

-46.0%

US Energy Services

7.3%

US Market

Return vs Industry: SLB exceeded the US Energy Services industry which returned -46% over the past year.

Return vs Market: SLB underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

SLBIndustryMarket
7 Day2.6%0.4%1.8%
30 Day-16.5%-13.3%-0.7%
90 Day-17.6%-16.2%0.06%
1 Year-42.5%-45.4%-44.5%-46.0%9.7%7.3%
3 Year-57.1%-61.6%-55.2%-60.6%46.3%36.9%
5 Year-62.0%-67.5%-66.3%-71.2%64.5%46.5%

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?

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SLB ($31.89) is trading below our estimate of fair value ($55.96)

Significantly Undervalued: 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 (21.1x) compared to the Energy Services industry average (14.2x).

PE vs Market: SLB is poor value based on its PE Ratio (21.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SLB is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SLB is overvalued based on its PB Ratio (1.2x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Schlumberger forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLB's forecast earnings growth (21.1% per year) is above the savings rate (2.7%).

Earnings vs Market: SLB's earnings (21.1% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: SLB's revenue (5.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SLB's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SLB's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Schlumberger performed over the past 5 years?

-45.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SLB's earnings have declined by -45.1% per year over the past 5 years.

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 (-13.1%).


Return on Equity

High ROE: SLB's Return on Equity (5.9%) is considered low.


Return on Assets

ROA vs Industry: SLB's Return on Assets is below or equal to the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: SLB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Schlumberger's financial position?


Financial Position Analysis

Short Term Liabilities: SLB's short term assets ($16.3B) exceeds its short term liabilities ($11.8B)

Long Term Liabilities: SLB's short term assets (16.3B) do not cover its long term liabilities (22.5B)


Debt to Equity History and Analysis

Debt Level: SLB's debt to equity ratio (42.2%) is considered high

Reducing Debt: SLB's debt to equity ratio has increased from 32.5% to 42.2% over the past 5 years.

Debt Coverage: SLB's debt is well covered by operating cash flow (36.5%).

Interest Coverage: SLB's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

Inventory Level: SLB has a high level of physical assets or inventory.

Debt Coverage by Assets: SLB's debt is covered by short term assets (assets are 1.067510x debt).


Next Steps

Dividend

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

6.27%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.5%markettop25%3.7%industryaverage4.5%forecastin3Years6.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SLB's dividend (6.27%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SLB's dividend (6.27%) is in the top 25% of dividend payers in the US market (3.72%)

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: With its high payout ratio (132.2%), SLB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLB's dividends in 3 years are forecast to be covered by earnings (73.8% payout ratio).


Next Steps

Management

What is the CEO of Schlumberger's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Olivier Le Peuch (55yo)

0.2yrs

Tenure

US$7,496,977

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 ($USD0.00) is too low to compare against companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Insufficient data to compare Olivier's compensation with company performance.


Management Age and Tenure

4.6yrs

Average Tenure

54.5yo

Average Age

Experienced Management: SLB's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: SLB's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: SLB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$976,47426 Jul 19
Stephanie Cox
EntityIndividual
Shares24,057
Max PriceUS$40.59
SellUS$374,18729 Apr 19
Alexander Juden
EntityIndividual
Role
Chief Legal Officer
Secretary & General Counsel
Shares8,643
Max PriceUS$43.29
SellUS$1,152,50023 Apr 19
Simon Ayat
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares25,000
Max PriceUS$46.10
BuyUS$375,50021 Dec 18
Patrick Arnold Schorn
EntityIndividual
Shares10,000
Max PriceUS$37.55
SellUS$3,396,00030 Oct 18
Simon Ayat
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares60,000
Max PriceUS$62.00

Ownership Breakdown


Management Team

  • Ashok Belani (60yo)

    Executive Vice President of Technology

    • Tenure: 8.8yrs
    • Compensation: US$5.03m
  • Simon Ayat (64yo)

    Executive VP & CFO

    • Tenure: 12.6yrs
    • Compensation: US$5.59m
  • Howard Guild (47yo)

    Chief Accounting Officer

    • Tenure: 14.3yrs
  • Olivier Le Peuch (55yo)

    CEO & Director

    • Tenure: 0.2yrs
    • Compensation: US$7.50m
  • Alex Juden (58yo)

    Secretary & General Counsel

    • Tenure: 10.5yrs
    • Compensation: US$7.12m
  • Aaron Floridia (50yo)

    Senior Advisor to Chief Operating Officer

    • Tenure: 0.5yrs
    • Compensation: US$4.38m
  • Khaled Al Mogharbel (48yo)

    Executive Vice President of Operations

    • Tenure: 0.8yrs
    • Compensation: US$4.52m
  • Simon Farrant (54yo)

    Vice President of Investor Relations

    • Tenure: 5.7yrs
  • Eric Abecassis

    Chief Information Officer

    • Tenure: 2.6yrs
  • Joao Felix

    Director of Corporate Communication

    • Tenure: 3.5yrs

Board Members

  • Peter L. Currie (62yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$401.17k
  • Indra Nooyi (63yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$336.23k
  • Mark Papa (72yo)

    Non-Executive Chairman

    • Tenure: 0.2yrs
  • Henri Seydoux (58yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$338.73k
  • Lubna Al-Olayan (63yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$328.73k
  • Olivier Le Peuch (55yo)

    CEO & Director

    • Tenure: 0.2yrs
    • Compensation: US$7.50m
  • Miguel Galuccio (50yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$333.73k
  • Leo Reif (68yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$377.98k
  • Nikolay Kudryavtsev (68yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$338.73k
  • Tatiana Mitrova (44yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$125.19k

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$44.104b
  • Shares outstanding: 1.38b
  • Website: https://www.slb.com

Number of Employees


Location

  • Schlumberger Limited
  • 3600 Briarpark Drive
  • Houston
  • Texas
  • 77042
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:41
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.