tiprankstipranks
Trending News
More News >
Core Laboratories N.V. (CLB)
NYSE:CLB
Advertisement

Core Laboratories (CLB) AI Stock Analysis

Compare
212 Followers

Top Page

CLB

Core Laboratories

(NYSE:CLB)

Rating:61Neutral
Price Target:
$11.00
▼(-1.08% Downside)
Core Laboratories shows strong financial performance and positive corporate events, but faces technical challenges and valuation concerns. The earnings call highlighted both strengths and ongoing market risks, leading to a moderate overall stock score.
Positive Factors
Financial performance
The target price for the stock has been raised to $16, indicating improved cash dynamics over time.
Geopolitical factors
Potential easing of geopolitical tensions between Russia and Ukraine could serve as a positive catalyst for the company.
Research and Development
The Research and Development division is expected to grow, likely outpacing international upstream capital expenditure growth.
Negative Factors
Operational challenges
Production Enhancement has shrunk to just 11% of total company operating income, indicating challenges in that segment.

Core Laboratories (CLB) vs. SPDR S&P 500 ETF (SPY)

Core Laboratories Business Overview & Revenue Model

Company DescriptionCore Laboratories N.V. provides reservoir description and production enhancement services and products to the oil and gas industry in the United States, Canada, and internationally. It operates through Reservoir Description and Production Enhancement segments. The Reservoir Description segment includes the characterization of petroleum reservoir rock, reservoir fluid, and gas samples to enhance production and improve recovery of oil and gas from its clients' reservoirs. It offers laboratory-based analytical and field services to characterize properties of crude oil and oil delivered products; and proprietary and joint industry studies. The Production Enhancement segment provides services and products relating to reservoir well completions, perforations, stimulations, and production. It offers integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions to improve the effectiveness of enhanced oil recovery projects. In addition, the company markets and sells its products through a combination of sales representatives, technical seminars, trade shows, and print advertising, as well as through distributors. It operates approximately in 50 countries. The company was founded in 1936 and is based in Amstelveen, the Netherlands.
How the Company Makes MoneyCore Laboratories generates revenue through its core services in reservoir description and production enhancement. The company earns money by providing specialized analytical services and technologies that help oil and gas companies assess and improve the efficiency of their extraction processes. Key revenue streams include fees for laboratory services, consulting, and proprietary technologies. Additionally, Core Labs often engages in partnerships with major oil companies and research organizations, which can enhance its service offerings and lead to increased contract opportunities. The demand for its services is influenced by the activity levels in the oil and gas sector, particularly in exploration and production, making the company's earnings sensitive to oil prices and industry trends.

Core Laboratories Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as revenue growth, improved operating margins, and strategic technological advancements. However, these positives were tempered by flat year-over-year revenue, decreased net income, and ongoing geopolitical uncertainties affecting the market, leading to a balanced viewpoint on the company’s performance.
Q2-2025 Updates
Positive Updates
Revenue Growth
Second quarter 2025 revenue increased by 5% compared to Q1 2025, reaching $130.2 million, driven by a rebound in maritime movement and international product sales.
Operating Margin Improvement
Reservoir Description and Production Enhancement segments showed improvement in operating margins, with margins rising to 13% and 9% respectively.
Share Repurchase and Debt Reduction
Core Lab repurchased over 237,000 shares valued at $2.7 million and reduced net debt by more than $9 million, achieving the lowest leverage ratio in 8 years at 1.27.
Technological Advancements and New Projects
Core Lab engaged in new projects in Colombia and Canada, focusing on enhanced oil recovery, carbon capture, and geothermal energy projects.
Negative Updates
Flat Year-over-Year Revenue
Despite sequential growth, revenue for Q2 2025 was flat compared to the same quarter last year, indicating challenges in sustaining year-over-year growth.
Decreased Net Income Year-Over-Year
Net income for Q2 2025 decreased to $8.8 million from $10.4 million the previous year, highlighting challenges in maintaining profitability.
Geopolitical and Market Uncertainties
Geopolitical conflicts and market volatility continue to create uncertainty in the demand for laboratory services, affecting growth prospects.
Company Guidance
In the Core Laboratories Q2 2025 earnings call, the company provided guidance for the third quarter and detailed its financial performance. Revenue in Q2 was $130.2 million, a 5% increase from Q1, driven by a rebound in maritime movement and trading of crude oil. The Reservoir Description segment saw a 7% revenue increase, with operating margins improving to 13%. Production Enhancement revenue rose by 3%, with operating margins increasing to 9%. Core Lab repurchased over 237,000 shares, valued at $2.7 million, and reduced net debt by more than $9 million, achieving a leverage ratio of 1.27, the lowest in eight years. For Q3, revenue is projected to range between $127.5 million and $134.5 million, with operating income between $13.6 million and $16.2 million, and EPS expected to be between $0.18 and $0.22. The company remains focused on maximizing free cash flow, returns on invested capital, and shareholder value.

Core Laboratories Financial Statement Overview

Summary
Core Laboratories demonstrates financial resilience with a strong income statement and stable cash flow generation. The company is effectively managing its operational costs and generating consistent revenue growth. The balance sheet shows a balanced approach to leverage, although there is room for improvement in equity stability.
Income Statement
75
Positive
Core Laboratories shows a consistent improvement in its revenue and profitability. The gross profit margin and net profit margin are improving, indicating operational efficiency. Revenue growth has been steady with a positive trend over the years. The EBIT and EBITDA margins are healthy, reflecting the company's ability to manage its operational costs effectively.
Balance Sheet
65
Positive
The company's balance sheet is stable, with a favorable debt-to-equity ratio showing manageable leverage. The equity ratio indicates a solid financial foundation, but there has been fluctuation in stockholders' equity. The return on equity is positive and improving, highlighting effective use of equity to generate profits.
Cash Flow
70
Positive
The cash flow statement reflects good cash generation capacity, with consistent free cash flow and operating cash flow relative to net income. There is a positive trend in free cash flow growth, which supports future investments and debt management. The operating cash flow to net income ratio is strong, demonstrating efficient cash operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue523.85M509.79M489.74M470.25M487.27M
Gross Profit88.37M94.05M78.92M83.84M91.63M
EBITDA73.27M70.42M58.69M63.78M-56.73M
Net Income31.40M36.67M19.45M19.73M-97.21M
Balance Sheet
Total Assets590.41M586.39M578.35M580.85M568.58M
Cash, Cash Equivalents and Short-Term Investments19.16M15.12M15.43M17.70M13.81M
Total Debt180.14M215.38M222.39M250.26M326.98M
Total Liabilities332.67M356.59M389.40M419.85M493.01M
Stockholders Equity251.99M224.81M184.26M156.45M71.51M
Cash Flow
Free Cash Flow43.36M14.21M14.74M23.04M45.99M
Operating Cash Flow56.39M24.79M24.96M36.58M57.87M
Investing Cash Flow-6.39M-6.65M-3.86M-10.22M7.85M
Financing Cash Flow-45.96M-18.45M-23.38M-22.46M-63.01M

Core Laboratories Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11.12
Price Trends
50DMA
11.48
Negative
100DMA
11.58
Negative
200DMA
14.61
Negative
Market Momentum
MACD
-0.12
Negative
RSI
52.71
Neutral
STOCH
84.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLB, the sentiment is Neutral. The current price of 11.12 is above the 20-day moving average (MA) of 10.59, below the 50-day MA of 11.48, and below the 200-day MA of 14.61, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 84.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLB.

Core Laboratories Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$598.43M5.1954.03%-3.23%1031.00%
77
Outperform
$841.07M11.518.17%
65
Neutral
$15.26B7.313.02%5.32%4.27%-62.52%
64
Neutral
$1.28B41.185.66%-9.81%-124.43%
61
Neutral
$521.46M17.5111.82%0.36%0.70%5.97%
53
Neutral
$326.59M48.000.95%-12.15%
48
Neutral
$504.24M-16.86%-10.91%-580.59%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLB
Core Laboratories
11.14
-7.78
-41.12%
MRC
MRC Global
15.13
2.06
15.76%
OIS
Oil States International
5.53
0.32
6.14%
TTI
Tetra Technologies
4.51
1.44
46.91%
PUMP
Propetro Holding
4.90
-3.05
-38.36%
NESR
National Energy Services Reunited
9.03
-0.47
-4.95%

Core Laboratories Corporate Events

Private Placements and FinancingDividendsBusiness Operations and StrategyFinancial Disclosures
Core Laboratories Reports Strong Q2 Results and Dividend
Positive
Jul 23, 2025

On July 22, 2025, Core Laboratories Inc. entered into a Ninth Amended and Restated Credit Agreement, increasing its borrowing commitment to $150 million and extending the maturity date to July 22, 2029. This move aligns with the company’s strategic focus on expanding its global business and enhancing its financial flexibility. On July 23, 2025, Core Laboratories announced a quarterly cash dividend and reported second-quarter 2025 results, highlighting a 5% sequential revenue increase to $130.2 million and a 23% rise in operating income. The company also opened a new laboratory in Saudi Arabia and completed significant projects in Brazil and the North Sea, reinforcing its market position and commitment to delivering value to clients and shareholders.

The most recent analyst rating on (CLB) stock is a Sell with a $13.00 price target. To see the full list of analyst forecasts on Core Laboratories stock, see the CLB Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Core Laboratories Shareholders Approve Key Governance Items
Positive
May 27, 2025

On May 21, 2025, Core Laboratories Inc. held its Annual Meeting of Shareholders in Houston, Texas, where all proposed items were approved. Shareholders elected one new and re-elected two Class II Directors, ratified KPMG as the independent public accountant for 2025, and approved the executive compensation policies, reflecting strong shareholder support for the company’s governance and financial strategies.

The most recent analyst rating on (CLB) stock is a Sell with a $13.00 price target. To see the full list of analyst forecasts on Core Laboratories stock, see the CLB Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 02, 2025