Schlumberger (SLB) AI Stock Analysis

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Schlumberger

(NYSE:SLB)

Rating:72Outperform

Price Target:―

Schlumberger's strong financial performance is a key positive, supported by significant revenue growth and solid cash management. However, technical indicators reflect bearish trends, and mixed earnings call results, including revenue declines, introduce caution. The valuation remains attractive, with a stable dividend yield providing some investor reassurance.

Positive Factors

Growth Momentum

SLB highlighted growth momentum in low-carbon markets, specifically in CCUS, geothermal, and critical minerals.

Portfolio Resilience

SLB's diverse portfolio, including offshore exposure and digital solutions, offers resilience against uncertain macroeconomic conditions.

Shareholder Returns

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

Negative Factors

International Revenue Challenges

SLB reported a decline in international revenue driven by challenges in Mexico, Saudi Arabia, and Russia, which negatively impacted overall performance.

North America Market Weakness

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

Upstream Spending Decline

SLB expects a decline in upstream spending year-over-year, which is more significant than initially communicated.

Schlumberger (SLB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$44.95B

Dividend Yield3.36%

Average Volume (3M)13.63M

Price to Earnings (P/E)11.2

Beta (1Y)0.83

Revenue Growth5.83%

EPS Growth-2.03%

CountryUS

Employees110,000

SectorEnergy

Sector Strength42

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)0.72

Shares Outstanding1,360,161,600

10 Day Avg. Volume11,698,777

30 Day Avg. Volume13,629,068

Financial Highlights & Ratios

PEG Ratio-2.09

Price to Book (P/B)2.42

Price to Sales (P/S)0.00

P/FCF Ratio9.90

Enterprise Value/Market Cap1.29

Enterprise Value/Revenue0.40

Enterprise Value/Gross Profit7.84

Enterprise Value/Ebitda1.89

Forecast

1Y Price Target

$46.62

Price Target Upside41.06% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering13

Schlumberger Business Overview & Revenue Model

Company DescriptionSchlumberger Limited, known as SLB, is a leading global technology company that provides a comprehensive range of services and products to the energy industry. Operating in over 120 countries, SLB offers integrated solutions for reservoir characterization, drilling, production, and processing. The company's expertise spans across various sectors, including oil and gas exploration, offshore and onshore drilling, and energy management, aiming to enhance efficiency and sustainability throughout the energy lifecycle.

How the Company Makes MoneySchlumberger generates revenue primarily through its extensive portfolio of oilfield services and technology-driven solutions. The company's revenue streams are categorized into four main divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. These divisions offer a range of products and services such as software solutions, subsurface evaluation, drilling technologies, completion and production optimization, and equipment for oil and gas extraction and processing. Schlumberger collaborates with major energy companies around the world, establishing long-term partnerships that often involve large-scale projects. Additionally, SLB focuses on digital transformation and sustainability, investing in technologies and practices that improve operational efficiencies and reduce environmental impact, which can also drive revenue growth through innovative service offerings.

Schlumberger Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and profitability, and indicating strategic focus and market demand.

Chart InsightsSchlumberger's Digital and Integration segment shows robust growth, supported by a 17% year-on-year increase in digital revenue, reflecting strong adoption of digital and AI solutions. Production Systems also demonstrates solid performance with margin expansion. However, the Well Construction segment faces challenges, with a 12% revenue decline due to reduced drilling activity. The earnings call highlights a mixed outlook, with expectations for flat to mid-single-digit revenue growth in the second half of 2025, driven by digital and data center businesses, despite overall revenue declines and regional challenges.

Data provided by:

Main Street Data

Schlumberger Earnings Call Summary

Earnings Call Date:Apr 25, 2025

(Q1-2025)

% Change Since: -5.38%|

Next Earnings Date:Jul 18, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with some positive growth areas such as digital and low carbon markets, but overall revenue declines and challenges in key regions balanced the positive aspects. The company is focusing on cost management and strategic positioning to navigate uncertainty.

Q1-2025 Updates

Positive Updates

Positive Growth in Digital and Data Center Solutions

Digital revenue grew by 17% year on year, driven by increased adoption of digital and AI solutions. The data center infrastructure solutions business also saw strong growth in North America.

Production Systems Leading with Margin Expansion

The Production Systems division experienced steady revenue growth and further margin expansion, with margins increasing by 197 basis points year on year.

Significant Progress in Low Carbon Markets

Revenue from CCS, geothermal, critical minerals, and data center solutions is on pace to exceed $1 billion in 2025, showcasing positive momentum in these sectors.

Strong Cash Flow Generation

The company generated $600 million of cash flow from operations and positive free cash flow of $103 million in the first quarter.

Negative Updates

Overall Revenue Decline

First quarter revenue decreased by 3% year on year, with international revenue decreasing by 5% due to reduced activity in several key regions.

Challenges in Russia and Other Markets

Significant revenue decline in Russia, Mexico, and Saudi Arabia, with the international market being negatively impacted.

Tariff and Economic Uncertainty

Evolving tariff landscape and global economic uncertainty pose challenges, with tariffs impacting import and export flows between the US and China.

Decline in Well Construction Revenue

Well Construction revenue declined by 12%, with margins also decreasing year on year due to significantly lower drilling activity.

Company Guidance

During the SLB first-quarter 2025 earnings call, CEO Olivier Le Peuch provided guidance for the upcoming quarters, highlighting expectations for revenue to remain flat sequentially in the second quarter, with adjusted EBITDA margin expansion between 50 to 100 basis points, assuming no further tariff escalations and stable oil prices. For the full year, SLB anticipates flat to mid-single-digit revenue growth in the second half compared to the first half, supported by seasonal activity increases, new start-ups, and growth in digital and data center businesses, excluding the impact of the ChampionX acquisition. The company aims for at least $4 billion in returns to shareholders in 2025 while maintaining a focus on cost management and strategic positioning to navigate uncertain market conditions.

Schlumberger Financial Statement Overview

Summary

Schlumberger's financial statements demonstrate strong revenue and profit growth, effective cost management, and solid cash flow generation. While the increase in debt levels warrants monitoring, the overall financial health of the company is robust, supported by strong margins and effective capital utilization.

Income Statement

Very Positive

The company has shown strong performance with a consistent increase in total revenue from $22.93B in 2021 to $36.08B in the TTM period ending March 2025. The gross profit margin is robust at 20.5% TTM, indicating efficient cost management. The net profit margin is healthy at 11.6% TTM, showing solid profitability. Revenue growth has been impressive at 28.8% from 2022 to 2023 and 9.9% from 2023 to 2024. EBIT and EBITDA margins are also strong, reflecting efficient operations.

Balance Sheet

Positive

The balance sheet shows a stable financial structure with a debt-to-equity ratio of 0.49 TTM, indicating manageable leverage. Return on equity is strong at 14.5% TTM, reflecting effective use of shareholder funds. The equity ratio is reasonable at 65.9% TTM, suggesting a solid equity base. However, the slight increase in total debt from 2024 to TTM could be a potential risk if not managed properly.

Cash Flow

Very Positive

Cash flow performance is robust with a significant operating cash flow of $6.94B TTM. The free cash flow has shown steady growth, with a free cash flow growth rate of 6.1% from 2023 to 2024. The operating cash flow to net income ratio is strong at 1.65 TTM, indicating efficient cash generation relative to earnings. Additionally, the free cash flow to net income ratio of 1.13 TTM highlights strong cash conversion.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
36.08B	36.29B	33.13B	28.09B	22.93B	23.60B
	Gross Profit
7.41B	7.46B	6.56B	5.16B	3.66B	2.60B
	EBIT
6.31B	6.33B	5.50B	4.76B	793.00M	-747.00M
	EBITDA
7.75B	7.98B	7.54B	6.43B	2.91B	-8.76B
	Net Income Common Stockholders
4.19B	4.46B	4.20B	3.44B	1.88B	-10.49B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.90B	4.67B	3.99B	2.89B	3.14B	3.01B
	Total Assets
49.00B	48.94B	47.96B	43.13B	41.51B	42.57B
	Total Debt
14.00B	12.07B	11.96B	12.23B	14.20B	16.89B
	Net Debt
11.07B	8.53B	9.06B	10.57B	12.44B	16.04B
	Total Liabilities
28.25B	26.59B	26.60B	25.15B	26.23B	30.08B
	Stockholders Equity
19.52B	21.13B	20.19B	17.99B	15.29B	12.49B
Cash Flow		Free Cash Flow
4.75B	4.47B	4.54B	2.00B	3.47B	1.73B
	Operating Cash Flow
6.93B	6.60B	6.64B	3.72B	4.65B	2.94B
	Investing Cash Flow
-3.43B	-3.15B	-2.78B	-1.39B	-919.00M	-2.35B
	Financing Cash Flow
-3.38B	-2.77B	-2.51B	-2.38B	-2.82B	-873.00M

Schlumberger Technical Analysis

Technical Analysis Sentiment

Negative

Last Price33.05

Price Trends

50DMA

35.89

Negative

100DMA

38.36

Negative

200DMA

39.97

Negative

Market Momentum

MACD

-0.56

Positive

RSI

37.37

Neutral

STOCH

15.70

Positive

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 33.05 is below the 20-day moving average (MA) of 34.46, below the 50-day MA of 35.89, and below the 200-day MA of 39.97, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 37.37 is Neutral, neither overbought nor oversold. The STOCH value of 15.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLB.

Schlumberger Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TS	80 Outperform	$17.97B	10.21	10.45%	4.00%	-15.28%	-45.42%
FTI	77 Outperform	$13.07B	16.44	27.24%	0.64%	14.26%	294.37%
BKR	74 Outperform	$36.71B	12.65	18.04%	2.32%	6.22%	62.58%
HAL	73 Outperform	$16.84B	8.21	20.99%	3.47%	-2.54%	-17.53%
SLB	72 Outperform	$44.95B	11.21	20.82%	3.36%	5.83%	-2.03%
NOV	70 Outperform	$4.51B	8.00	9.29%	2.50%	0.54%	-39.88%
Sector *	57 Neutral	$7.07B	2.93	-3.47%	5.76%	0.66%	-50.70%

* Energy Sector Average

Performance Comparison

SLB

Schlumberger

33.05

-9.88

-23.01%

BKR

Baker Hughes Company

37.05

5.63

17.92%

FTI

TechnipFMC

31.15

6.82

28.03%

HAL

Halliburton

19.59

-14.35

-42.28%

NOV

12.00

-5.41

-31.07%

Tenaris SA

33.45

2.68

8.71%

Schlumberger Corporate Events

Regulatory Filings and Compliance

Schlumberger Issues Press Release with Regulation FD Disclosure

Neutral

Apr 25, 2025

On April 25, 2025, SLB issued a press release that was included in their Form 8-K filing, but it will not be considered ‘filed’ for purposes of Section 18 of the Exchange Act. The release also notes that the information will not be incorporated by reference in any filing under the Securities Act unless specifically referenced.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.