SLB (SLB): Evaluating the Stock’s Value as Geothermal Partnership Strengthens Clean Energy Push

SLB (NYSE:SLB) has teamed up with Ormat Technologies in a new partnership focused on developing next-generation geothermal assets. The collaboration aims to accelerate enhanced geothermal systems and expand SLB's reach in clean energy.

See our latest analysis for SLB.

SLB’s push into geothermal comes on the heels of a buyback update and a string of moves that highlight its shift toward clean energy and digital technology. While the stock has climbed nearly 8% over the past week, the 1-year total shareholder return remains in negative territory. However, strong five-year total returns hint at the potential for long-term investors if recent momentum is sustained.

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With SLB now trading at a discount to analyst targets and its long-term returns hinting at underlying value, the key question becomes whether the stock is still undervalued or if the market has already priced in its future growth.

Most Popular Narrative: 19.9% Undervalued

Compared to SLB’s last closing price of $36.16, the most closely followed narrative assigns a fair value nearly $9 higher, suggesting meaningful upside. This divergence is gaining attention. Here is what’s driving these expectations.

The integration of ChampionX expands SLB's capabilities in production optimization, chemicals, and digital production technology, unlocking new revenue synergies through cross-selling and international expansion, while also driving significant cost synergies ($400 million targeted). All of these factors are expected to increase EBITDA margins and earnings per share, notably in 2026 and beyond.

Read the complete narrative.

Want to know what tipping point could boost SLB’s fair value further? Behind this bullish narrative lies a unique blend of margin expansion, digital adoption, and projected growth that could reshape future profit multiples. Don’t stop at the headline. Find out what financial bets analysts are really making.

Result: Fair Value of $45.16 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent commodity price headwinds and uncertainty in key international markets such as Saudi Arabia and Mexico could quickly challenge this optimistic outlook.

Find out about the key risks to this SLB narrative.

Build Your Own SLB Narrative

If you have your own take or want to dig into the numbers yourself, you can build a custom story in just a few minutes. Do it your way

A great starting point for your SLB research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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