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 with mediocre balance sheet.

Risks

  • Schlumberger has significant price volatility in the past 3 months.

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

-5.2%

NYSE:SLB

-5.5%

US Energy Services

-1.0%

US Market


1 Year Return

-47.9%

NYSE:SLB

-47.1%

US Energy Services

-0.4%

US Market

SLB matched the Energy Services industry (-47.2%) over the past year.

SLB underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

SLBIndustryMarket
7 Day-5.2%-5.5%-1.0%
30 Day-15.6%-14.8%-3.3%
90 Day-16.1%-20.9%0.8%
1 Year-45.6%-47.9%-45.8%-47.1%1.9%-0.4%
3 Year-56.6%-60.7%-54.5%-59.9%39.4%30.4%
5 Year-65.3%-70.0%-71.0%-75.2%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Schlumberger's share price is below the future cash flow value, and at a moderate discount (> 20%).

Schlumberger's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Schlumberger is overvalued based on earnings compared to the US Energy Services industry average.

Schlumberger is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Schlumberger is good value based on expected growth next year.


Price Based on Value of Assets

Schlumberger is overvalued based on assets compared to the US Energy Services industry average.


Next Steps

Future Growth

How is Schlumberger expected to perform in the next 1 to 3 years based on estimates from 30 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Schlumberger's revenue is expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).

Schlumberger's earnings are expected to grow significantly at over 20% yearly.

Schlumberger's revenue growth is positive but not above the United States of America market average.

Schlumberger's earnings growth is expected to exceed the United States of America market average.

Schlumberger's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Schlumberger is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Schlumberger's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Schlumberger has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Schlumberger has become profitable in the last year making it difficult to compare the US Energy Services industry average.


Return on Equity

Schlumberger has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Schlumberger used its assets less efficiently than the US Energy Services industry average last year based on Return on Assets.


Return on Capital Employed

Schlumberger's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Schlumberger's financial position?


Financial Position Analysis

Schlumberger is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Schlumberger's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Schlumberger's level of debt (42.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (32.5% vs 42.2% today).

Debt is well covered by operating cash flow (36.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

6.11%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Schlumberger before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Schlumberger's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Schlumberger's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Olivier Le Peuch (55yo)

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

Insufficient data for Olivier to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.

Insufficient data for Olivier to compare compensation growth.


Management Age and Tenure

5.5yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Schlumberger management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.3yrs

Average Tenure

62.5yo

Average Age

The tenure for the Schlumberger board of directors is about average.


Insider Trading

Schlumberger individual 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
Secretary & General Counsel
Shares8,643
Max PriceUS$43.29
SellUS$1,152,50023 Apr 19
Simon Ayat
EntityIndividual
Role
Executive VP & CFO
Shares25,000
Max PriceUS$46.10
BuyUS$375,50021 Dec 18
Patrick Schorn
EntityIndividual
Shares10,000
Max PriceUS$37.55
SellUS$3,396,00030 Oct 18
Simon Ayat
EntityIndividual
Role
Executive VP & CFO
Shares60,000
Max PriceUS$62.00
BuyUS$482,48007 Sep 18
Michael Marks
EntityIndividual
Shares8,000
Max PriceUS$60.31

Ownership Breakdown


Management Team

  • Ashok Belani (60yo)

    Executive Vice President of Technology

    • Tenure: 8.6yrs
    • Compensation: $5.03m
  • Aaron Floridia (50yo)

    Senior Advisor to Chief Operating Officer

    • Tenure: 0.3yrs
    • Compensation: $4.38m
  • Howard Guild (47yo)

    Chief Accounting Officer

    • Tenure: 14.1yrs
  • Olivier Le Peuch (55yo)

    CEO & Director

    • Compensation: $7.50m
  • Simon Ayat (64yo)

    Executive VP & CFO

    • Tenure: 12.4yrs
    • Compensation: $5.59m
  • Khaled Al Mogharbel (48yo)

    Executive Vice President of Operations

    • Tenure: 0.6yrs
    • Compensation: $4.52m
  • Eric Abecassis

    Chief Information Officer

    • Tenure: 2.4yrs
  • Joao Felix

    Director of Corporate Communication

    • Tenure: 3.3yrs
  • Simon Farrant (54yo)

    Vice President of Investor Relations

    • Tenure: 5.5yrs
  • Alex Juden (58yo)

    Secretary & General Counsel

    • Tenure: 10.3yrs
    • Compensation: $7.12m

Board Members

  • Indra Nooyi (63yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: $336.23k
  • Olivier Le Peuch (55yo)

    CEO & Director

    • Compensation: $7.50m
  • Lubna Al-Olayan (63yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $328.73k
  • Tatiana Mitrova (44yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: $125.19k
  • Peter L. Currie (62yo)

    Lead Independent Director

    • Compensation: $401.17k
  • Henri Seydoux (58yo)

    Director

    • Tenure: 10.6yrs
    • Compensation: $338.73k
  • Leo Reif (68yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: $377.98k
  • Mark Papa (72yo)

    Non-Executive Chairman

  • Nikolay Kudryavtsev (68yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: $338.73k
  • Miguel Galuccio (50yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $333.73k

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$45.252b
  • Shares outstanding: 1.38b
  • Website: Click here

Number of Employees


Location

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

Listings

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

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 AnalysisN/A
End of Day Share Price2019/08/16 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.