NYSE:SLB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-11.3%

SLB

-13.3%

US Energy Services

-3.3%

US Market


1 Year Return

-51.6%

SLB

-53.1%

US Energy Services

10.9%

US Market

Return vs Industry: SLB exceeded the US Energy Services industry which returned -53.1% over the past year.

Return vs Market: SLB underperformed the US Market which returned 10.9% over the past year.


Shareholder returns

SLBIndustryMarket
7 Day-11.3%-13.3%-3.3%
30 Day-11.0%-17.2%-5.7%
90 Day-4.7%-7.4%8.2%
1 Year-49.5%-51.6%-51.6%-53.1%13.4%10.9%
3 Year-73.0%-76.2%-72.0%-74.2%34.9%25.9%
5 Year-71.8%-76.4%-68.2%-74.1%84.6%63.8%

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?

21.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLB ($16.62) is trading below our estimate of fair value ($21.08)

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


Price To Earnings Ratio

PE vs Industry: SLB is unprofitable, so we can't compare its PE Ratio to the US 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 (1.9x) compared to the US Energy Services industry average (0.5x).


Next Steps

Future Growth

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

74.1%

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 (2.2%).

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 (2.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SLB's revenue (2.7% 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 low in 3 years time (8.9%).


Next Steps

Past Performance

How has Schlumberger performed over the past 5 years?

-69.1%

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 69.1% 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 (-59.5%).


Return on Equity

High ROE: SLB has a negative Return on Equity (-175.22%), 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 ($14.4B) exceed its short term liabilities ($11.7B).

Long Term Liabilities: SLB's short term assets ($14.4B) do not cover its long term liabilities ($20.5B).


Debt to Equity History and Analysis

Debt Level: SLB's debt to equity ratio (128.1%) is considered high.

Reducing Debt: SLB's debt to equity ratio has increased from 34.9% to 128.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SLB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SLB is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 20.7% per year.


Next Steps

Dividend

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

3.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLB's dividend (3.01%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: SLB's dividend (3.01%) is low compared to the top 25% of dividend payers in the US market (5.03%).


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


Future Payout to Shareholders

Future Dividend Coverage: SLB's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Olivier Le Peuch (56 yo)

1.08yrs

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 ($USD19.12M) is above average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Olivier Le Peuch
CEO & Director1.08yrsUS$19.12m0.014%
$ 3.2m
Khaled Al Mogharbel
Executive VP of Operations & Geographies1.42yrsUS$8.63m0.0086%
$ 2.0m
Hinda Gharbi
Executive VP of Services & Equipment1.58yrsUS$7.48m0.011%
$ 2.5m
Stephane Biguet
Executive VP & CFO0.67yrno data0.0038%
$ 881.3k
Howard Guild
Chief Accounting Officer15.17yrsno data0.0035%
$ 809.8k
Demosthenis Pafitis
Chief Technology Officer0.58yrno datano data
Eric Abecassis
Chief Information Officer3.5yrsno datano data
Ndubuisi Maduemezia
Vice President of Investor Relations0.17yrno datano data
Alexander Juden
Secretary & General Counsel11.42yrsUS$7.12m0.0066%
$ 1.5m
Joao Felix
Director of Corporate Communication4.42yrsno datano data
Steve Kaufmann
Senior Vice President of Sales & Commercial4.08yrsno datano data
Justin Rounce
Senior Vice President of Marketing & Technology4.08yrsno datano data

2.5yrs

Average Tenure

51yo

Average Age

Experienced Management: SLB's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Olivier Le Peuch
CEO & Director1.08yrsUS$19.12m0.014%
$ 3.2m
Mark Papa
Non-Executive Chairman1.08yrsUS$466.34k0.0036%
$ 832.8k
Henri Seydoux
Independent Director11.67yrsUS$329.18k0.0028%
$ 643.7k
Lubna Al-Olayan
Independent Director9.42yrsUS$326.68k0.0029%
$ 678.3k
Miguel Galuccio
Director3.42yrsUS$329.18k0.0016%
$ 378.4k
Leo Reif
Independent Director13.67yrsUS$357.27k0.0031%
$ 710.6k
Patrick de La Chevardière
Independent Director0.92yrUS$35.05k0.00098%
$ 226.1k
Jeffrey Sheets
Independent Director0.92yrUS$35.05k0.00098%
$ 226.1k
Tatiana Mitrova
Independent Director1.92yrsUS$316.68k0.0012%
$ 286.1k

1.9yrs

Average Tenure

62yo

Average Age

Experienced Board: SLB's board of directors are not considered experienced ( 1.9 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: 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$23.070b
  • 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
0SCLLSE (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
SLBPBATS-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 Analysis2020/09/25 06:15
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
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.