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Core Laboratories N.V. (CLB)
NYSE:CLB
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Core Laboratories
(NYSE:CLB)
61Neutral
Positive Factors
Geopolitical Factors
Potential easing of geopolitical tensions between Russia and Ukraine could serve as a positive catalyst for the company.
Stock Rating
The stock has been upgraded to Neutral, reflecting a more balanced risk/reward scenario.
Negative Factors
Business Segment Performance
Production Enhancement has shrunk to just 11% of total company operating income, indicating challenges in that segment.
Core Laboratories (CLB) vs. S&P 500 (SPY)
Market Cap
$547.59M
Dividend Yield0.35%
Average Volume (3M)564.67K
Price to Earnings (P/E)19.5
Beta (1Y)0.85
Revenue Growth1.32%
EPS Growth-33.17%
CountryUS
Employees3,500
SectorEnergy
Sector Strength53
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.60
Shares Outstanding46,882,935
10 Day Avg. Volume666,579
30 Day Avg. Volume564,673
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.58
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit9.79
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.00Price Target Upside19.86% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Core Laboratories Business Overview & Revenue Model
Company DescriptionCore Laboratories (CLB) is a leading provider of proprietary and patented reservoir description, production enhancement, and reservoir management services for the oil and gas industry. The company operates in two main segments: Reservoir Description, which focuses on analyzing and understanding reservoir rock, fluid, and gas samples, and Production Enhancement, which centers on improving the extraction and recovery processes of hydrocarbons. Core Laboratories serves major, national, and independent oil companies worldwide, offering specialized services and products that are crucial for optimizing production and maximizing recovery from existing oil and gas fields.
How the Company Makes MoneyCore Laboratories generates revenue primarily through its two main business segments: Reservoir Description and Production Enhancement. The Reservoir Description segment provides laboratory-based services that analyze geological samples to assess reservoir characteristics, which helps clients optimize their exploration and production strategies. This segment earns revenue by offering specialized testing and analytical services that are critical for understanding the properties of oil and gas reservoirs. The Production Enhancement segment focuses on designing and implementing technologies that improve the efficiency and effectiveness of hydrocarbon extraction and recovery. This includes offering services and products that enhance well performance and increase oil and gas output. Core Laboratories also benefits from strategic partnerships and collaborations with major oil and gas companies, enabling it to leverage its expertise and technology to secure long-term contracts and projects, thus contributing to its revenue growth.
Core Laboratories Financial Statement Overview
Summary
Core Laboratories has strong profitability and cash flow management, with solid gross and net profit margins. The balance sheet shows manageable leverage, but there are concerns about potential leverage risks. Overall, the financial performance is stable, but revenue growth needs attention.Income Statement
Core Laboratories shows solid profitability with a gross profit margin of 36.8% and a net profit margin of 5.4% for TTM. The revenue growth has been stable, with a slight decline recently, but overall EBIT and EBITDA margins remain healthy, indicating efficient operations.78
Positive
Balance Sheet
The company has a moderate debt-to-equity ratio of 0.17, reflecting manageable leverage. The return on equity is favorable at 10.8%, suggesting effective use of equity. However, the equity ratio stands at a moderate 43.8%, implying potential leverage risks if not managed carefully.65
Positive
Cash Flow
Core Laboratories has shown strong cash flow management, with a significant operating cash flow to net income ratio of 2.05, indicating robust cash generation relative to earnings. Free cash flow has also grown, supporting financial stability and operational flexibility.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 523.85M | 509.79M | 489.74M | 470.25M | 487.27M | Gross Profit |
| 88.37M | 94.05M | 78.92M | 83.84M | 91.63M | EBIT |
| 58.56M | 54.64M | 41.52M | 45.26M | 55.77M | EBITDA |
| 73.51M | 70.42M | 58.69M | 63.78M | -56.50M | Net Income Common Stockholders |
| 31.40M | 36.67M | 19.45M | 19.73M | -97.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.16M | 15.12M | 15.43M | 17.70M | 13.81M | Total Assets |
| 590.41M | 586.39M | 578.35M | 580.85M | 568.58M | Total Debt |
| 180.14M | 215.38M | 222.39M | 250.26M | 326.98M | Net Debt |
| 160.99M | 200.26M | 206.96M | 232.56M | 313.17M | Total Liabilities |
| 332.67M | 356.59M | 389.40M | 419.85M | 493.01M | Stockholders Equity |
| 94.45M | 224.81M | 188.95M | 161.00M | 75.57M |
| Cash Flow | Free Cash Flow | |||
| 43.36M | 14.21M | 14.74M | 23.04M | 45.99M | Operating Cash Flow |
| 56.39M | 24.79M | 24.96M | 36.58M | 57.87M | Investing Cash Flow |
| -6.39M | -6.65M | -3.86M | -10.22M | 7.85M | Financing Cash Flow |
| -45.96M | -18.45M | -23.38M | -22.46M | -63.01M |
Core Laboratories Technical Analysis
Negative
11.68
Price Trends
13.85
Negative
16.04
Negative
17.91
Negative
Market Momentum
-0.73
Negative
40.71
Neutral
24.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLB, the sentiment is Negative. The current price of 11.68 is below the 20-day moving average (MA) of 12.00, below the 50-day MA of 13.85, and below the 200-day MA of 17.91, indicating a bearish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 24.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLB.
Core Laboratories Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.00B | 39.29 | 10.01% | ― | -9.17% | -71.36% | |
67 Neutral | $594.64M | ― | 1.53% | ― | ― | ― | |
61 Neutral | $547.59M | 19.54 | 11.54% | 0.35% | 1.32% | -33.17% | |
61 Neutral | $304.51M | 2.82 | 55.55% | ― | -4.08% | 429.70% | |
56 Neutral | $6.93B | 3.27 | -3.99% | 5.91% | -0.52% | -47.74% | |
53 Neutral | $515.81M | ― | -16.24% | ― | -13.32% | -309.35% | |
52 Neutral | $217.68M | ― | -1.62% | ― | -11.47% | -187.17% |
* Energy Sector Average
Performance Comparison
CLB
Core Laboratories
11.68
-3.98
-25.42%
MRC
MRC Global
11.69
0.26
2.27%
OIS
Oil States International
4.32
0.03
0.70%
TTI
Tetra Technologies
2.65
-1.14
-30.08%
PUMP
Propetro Holding
5.36
-3.80
-41.48%
NESR
National Energy Services Reunited
6.31
-3.44
-35.28%
Core Laboratories Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: -3.23%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call discussed both positive steps towards operational improvements and strategic focuses that are expected to improve future performance, alongside significant challenges posed by geopolitical conflicts and sanctions impacting revenue and margins. The company's efforts in cost reduction and market expansion were highlighted, but the immediate financial results were negatively impacted by external factors.Q1-2025 Updates
Positive Updates
Operational Improvements and Strategic Focus
Core Labs continued to strengthen its balance sheet by reducing net debt by approximately $5 million and maintaining the lowest leverage ratio in eight years. The company also repurchased nearly 132,000 shares of company stock at a value of $2 million, focusing on deleveraging and returning excess free cash to shareholders.
Production Enhancement Margin Growth
Operating margins in production enhancement expanded by 450 basis points to 8% due to increased demand for high-margin diagnostic services in the U.S., especially in complex well completions and catch-up work in the Gulf of Mexico.
Cost Reduction Initiatives
Core Labs has implemented cost reduction plans to mitigate revenue loss, which includes employee severance and exiting certain facilities, expecting these cost efficiencies to improve margins in future quarters.
New Client Engagements and Market Opportunities
Core Labs is expanding its presence in Africa and Libya, collaborating with local entities and leveraging its knowledge of the region's sedimentary basins, which is expected to drive long-term growth.
Negative Updates
Revenue and Income Decline
First quarter 2025 revenue decreased by 4% compared to Q4 of 2024, with operating income and earnings per share also down sequentially. The revenue was down 5% year over year, impacted by geopolitical conflicts and expanded sanctions.
Geopolitical and Sanction Challenges
Expanded sanctions affected revenue and operational efficiency, particularly in reservoir description and production enhancement segments, causing a temporary halt in trading activities and demand for assay services.
Product Sales Decline
Product sales were down 13% sequentially and 14% year over year, impacted by expanded sanctions and the delay of large international orders.
Operating Margin Pressure
Reservoir description margins decreased by 670 basis points to 10% due to high decrementals and geopolitical headwinds, despite operational leadership's steps to realign the cost structure.
Company Guidance
During the Core Laboratories N.V. first quarter 2025 earnings call, the company provided detailed guidance and financial metrics. Revenue for the first quarter was $123.6 million, down 4% sequentially and 5% year over year, impacted by geopolitical conflicts and expanded sanctions. Operating income was $11.8 million, with operating margins of approximately 10%, and a net loss of $200,000 on a GAAP basis. Service revenue was $95.1 million, while product sales were $28.5 million. The company projected second-quarter 2025 revenue to range from $128 million to $134 million, with operating income of $13.1 million to $15.7 million, yielding operating margins of approximately 11%. Earnings per share for the second quarter are expected to range from $0.17 to $0.21. Core Labs aims to maintain a focus on reducing debt, with net debt reduced by approximately $5 million in the first quarter, and strengthening its balance sheet while continuing to return excess free cash to shareholders.Core Laboratories Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Core Laboratories Reports Q1 2025 Financial Results
Neutral
Apr 23, 2025
On April 23, 2025, Core Laboratories announced a quarterly cash dividend and reported its first quarter 2025 financial results. The company experienced a decline in revenue and operating income due to geopolitical conflicts and sanctions affecting demand for its services. Despite these challenges, Core Labs engaged new clients in the Middle East and Africa, and continued to innovate with its proprietary technologies. The company also reduced its net debt and repurchased shares, while focusing on growth opportunities in unconventional plays and geothermal projects.
Spark’s Take on CLB Stock
According to Spark, TipRanks’ AI Analyst, CLB is a Neutral.
Core Laboratories presents a mixed investment case. Key strengths include improvements in financial stability and debt reduction, while profitability challenges and reliance on external financing are notable risks. Technical indicators suggest cautiousness due to downward momentum. Valuation is moderate with a low dividend yield. The outlook is cautiously optimistic, considering recent earnings call guidance.
To see Spark’s full report on CLB stock, click here.
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.