Schlumberger (SLB) AI Stock Analysis

• Market Cap: $48.84B
• Dividend Yield: 3.14%
• Average Volume (3M): 12.47M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.81
• Revenue Growth: 5.83%
• EPS Growth: -2.03%
• Country: US
• Employees: 110,000
• Sector: Energy
• Sector Strength: 68
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.72
• Shares Outstanding: 1,360,161,600
• 10 Day Avg. Volume: 13,232,414
• 30 Day Avg. Volume: 12,469,686
• PEG Ratio: 0.27
• Price to Book (P/B): 4.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.76
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 11.65
• Enterprise Value/Ebitda: 2.81
• 1Y Price Target: $46.54
• Price Target Upside: 29.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $40.00 ▲(11.39%Upside)

Schlumberger showcases strong financial performance and reasonable valuation, which are significant positives. The technical analysis presents a less bullish picture, indicating that the stock may face some price pressure. Earnings call insights reveal both opportunities and challenges, highlighting the company's strategic focus and market uncertainties.

Positive Factors

Diverse Portfolio

SLB's diverse portfolio, including US offshore and digital solutions, provides resilience against trends affecting North American onshore markets.

International Markets

SLB sees resilience in international markets, particularly in the Middle East, Asia, offshore, and global gas markets.

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 Weakness

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

Upstream Spending

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

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 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 Financial Statement Overview

Summary

Schlumberger's financial performance is strong, characterized by significant revenue growth, robust profit margins, and solid cash flow generation. The increase in debt levels warrants some caution, but overall financial health is robust with effective cost management and capital utilization.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 35.91
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLB, the sentiment is Neutral. The current price of 35.91 is above the 20-day moving average (MA) of 34.14, above the 50-day MA of 34.11, and below the 200-day MA of 39.15, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 60.20 is Neutral, neither overbought nor oversold. The STOCH value of 90.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLB.

Schlumberger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	82 Outperform	$14.47B	18.22	27.24%	0.58%	14.26%	294.37%
TS	80 Outperform	$19.22B	10.98	10.45%	6.22%	-15.28%	-45.42%
HAL	77 Outperform	$19.94B	9.72	20.99%	2.93%	-2.54%	-17.53%
SLB	76 Outperform	$48.84B	12.18	20.82%	3.14%	5.83%	-2.03%
BKR	74 Outperform	$38.68B	13.33	18.04%	2.36%	6.22%	62.58%
NOV	73 Outperform	$5.13B	9.11	9.29%	2.20%	0.54%	-39.88%
Sector *	58 Neutral	$7.55B	3.49	-4.45%	10.15%	0.79%	-49.51%

Schlumberger Corporate Events

Schlumberger Issues Press Release with Regulation FD Disclosure

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.