Schlumberger (SLB) AI Stock Analysis

• Market Cap: $46.44B
• Dividend Yield: 3.25%
• Average Volume (3M): 21.79M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.94
• Revenue Growth: 9.58%
• EPS Growth: 6.53%
• Country: US
• Employees: 110,000
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 3.11
• Shares Outstanding: 1,359,855,200
• 10 Day Avg. Volume: 30,164,154
• 30 Day Avg. Volume: 21,788,266
• PEG Ratio: 1.68
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.58
• Price to Cash Flow (P/CF): 6.00
• P/FCF Ratio: 5.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.80
• Price Target Upside: 47.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Schlumberger scores well due to strong financial growth, attractive valuation, and positive earnings call sentiment. However, the bearish technical indicators and high liabilities affect the overall outlook. Despite challenges in specific regions, the company's strength in digital and low-carbon markets offers potential growth opportunities.

Positive Factors

Digital Business

The company will provide new reporting segments, giving investors a clear view of its high growth, high margin Digital business.

Earnings and Guidance

SLB outperformed in the trading session after reporting results and FY25 guidance that were in line or slightly above expectations.

Shareholder Returns

SLB entered into a $2.3 billion 'accelerated share repurchase' program and announced a 4% dividend increase.

Negative Factors

Excess Oil Supply

Excess oil supply is expected to be a challenge in 2025, although management is optimistic about the market balancing over time.

North America Market Weakness

Continued North America weakness due to lower onshore capital expenditures, greater drilling efficiency, and slower capacity expansions versus expectations.

Well Construction Market Headwinds

Headwinds in several large well construction markets, including North America, Saudi Arabia, and Mexico, are expected to lead to a modest decline in EBITDA margins.

Schlumberger Business Overview & Revenue Model

Company Description

Schlumberger Limited provides technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. It offers software, information management, and IT infrastructure services; consulting services for reservoir characterization, field development planning, and production enhancement; petro technical data services and training solutions; reservoir interpretation and data processing services; asset performance solutions; open and cased-hole services; exploration and production pressure and flow-rate measurement services; pressure pumping, well stimulation, and coiled tubing equipment for downhole mechanical well intervention, reservoir monitoring, and downhole data acquisition; and integrated production systems. The company also provides mud logging and engineering support services; drilling equipment and services for shipyards, drilling contractors, energy companies, and rental tool companies; land drilling rigs and related services; drilling tools; well cementing products and services; and well planning and drilling, engineering, supervision, logistics, procurement, contracting, and drilling rig management services, as well as supplies engineered drilling fluid systems; and designs, manufactures, and markets roller cone and fixed cutter drill bits. In addition, it offers well completion services and equipment; artificial lift production equipment and optimization services; valves; process systems; and integrated subsea production systems comprising wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services, as well as designs and manufactures onshore and offshore platform wellhead systems and processing solutions. The company was formerly known as Société de prospection électrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas.

How the Company Makes Money

Schlumberger generates revenue through a diverse range of services and technology solutions tailored for the oil and gas industry. The company's primary revenue streams include the provision of drilling services, reservoir characterization, and production enhancement solutions. Schlumberger's drilling services involve the use of advanced technologies and equipment to optimize drilling operations, thereby increasing efficiency and reducing operational costs for clients. Reservoir characterization involves the use of seismic data and other technologies to analyze subsurface formations, aiding in the accurate assessment of resource potential. Additionally, production enhancement services focus on improving the recovery rates and operational efficiency of existing wells. The company often engages in long-term contracts and partnerships with major oil and gas companies, which contribute significantly to its earnings. These partnerships, along with its global presence and continuous investment in research and development, help maintain its competitive edge and drive revenue growth.

Schlumberger Financial Statement Overview

Summary

Schlumberger exhibits strong financial performance with impressive revenue and profit growth, stable margins, and effective equity usage. Moderate debt levels are offset by high liabilities, indicating leverage risks. Cash flow challenges, particularly recent negative free cash flow, pose potential liquidity issues.

Income Statement

Schlumberger showed strong growth in revenue, with a substantial increase from 2023 to 2024. Gross profit margins improved, indicating enhanced operational efficiency. The net profit margin has been stable, reflecting consistent profitability. The EBIT and EBITDA margins are healthy, demonstrating robust earnings performance.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting manageable leverage. Schlumberger's return on equity is solid, indicating effective use of equity to generate profits. The equity ratio is reasonable, reflecting a balanced asset structure. However, total liabilities are high compared to equity, indicating potential leverage risks.

Cash Flow

There was a decline in free cash flow from 2023 to 2024, which could be a concern. The operating cash flow to net income ratio is not available for 2024, but previous data indicates a strong capacity to generate cash from operations. Free cash flow to net income ratios in earlier years suggest good cash conversion, though recent negative free cash flow poses a risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
36.29B	33.13B	28.09B	22.93B	23.60B
	Gross Profit
7.46B	6.56B	5.16B	3.66B	2.60B
	EBIT
6.33B	5.50B	4.76B	793.00M	-747.00M
	EBITDA
8.07B	7.54B	6.43B	2.91B	-8.76B
	Net Income Common Stockholders
4.46B	4.20B	3.44B	1.88B	-10.49B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.67B	3.99B	2.89B	3.14B	3.01B
	Total Assets
48.94B	47.96B	43.13B	41.51B	42.57B
	Total Debt
12.07B	11.96B	12.23B	14.20B	16.89B
	Net Debt
8.53B	9.06B	10.57B	12.44B	16.04B
	Total Liabilities
26.59B	26.60B	25.15B	26.23B	30.08B
	Stockholders Equity
16.74B	20.19B	17.99B	15.29B	12.49B
Cash Flow		Free Cash Flow
4.47B	4.54B	2.00B	3.47B	1.73B
	Operating Cash Flow
6.60B	6.64B	3.72B	4.65B	2.94B
	Investing Cash Flow
-3.15B	-2.78B	-1.39B	-919.00M	-2.35B
	Financing Cash Flow
-2.77B	-2.51B	-2.38B	-2.82B	-873.00M

Schlumberger Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLB, the sentiment is Negative. The current price of 35.11 is below the 20-day moving average (MA) of 37.80, below the 50-day MA of 39.72, and below the 200-day MA of 41.62, indicating a bearish trend. The MACD of -1.90 indicates Positive momentum. The RSI at 41.80 is Neutral, neither overbought nor oversold. The STOCH value of 49.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLB.

Schlumberger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKR	82 Outperform	$37.56B	12.75	18.47%	2.25%	9.10%	55.56%
FTI	78 Outperform	$10.51B	13.06	27.06%	0.80%	16.23%	1403.29%
NOV	78 Outperform	$4.48B	7.38	10.12%	2.49%	3.42%	-35.98%
HAL	75 Outperform	$18.32B	7.50	25.14%	3.17%	-0.32%	-3.41%
SLB	72 Outperform	$46.44B	10.99	21.59%	3.25%	9.58%	6.53%
TS	67 Neutral	$19.62B	9.05	12.18%	4.10%	-15.77%	-45.74%
Sector *	55 Neutral	$7.08B	3.69	-5.71%	6.15%	-1.38%	-53.90%

Schlumberger Corporate Events

Schlumberger Provides Insights on Operational Results

SLB released a press announcement on October 18, 2024, providing insights into its operational results and financial condition, which could be significant for investors and market watchers. This disclosure, although not officially filed under certain regulatory sections, offers valuable information for those tracking SLB’s performance and future prospects.