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Schoeller-Bleckmann Oilfield Equipment AG (SBOEY)
OTHER OTC:SBOEY
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Schoeller-Bleckmann Oilfield Equipment AG
(OTC:SBOEY)
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Rating:71Outperform
Price Target:
$3.50
▲(10.41% Upside)
Schoeller-Bleckmann Oilfield Equipment AG's overall stock score reflects a balanced view of its financial performance, technical analysis, and valuation. The company's operational efficiency and attractive dividend yield are significant strengths. However, challenges in revenue growth and cash flow generation, along with increased leverage, pose risks. The technical indicators suggest moderate stability, supporting a cautiously optimistic outlook.
Positive Factors
Operational Efficiency
Stable EBIT and EBITDA margins indicate effective cost management and operational strength, supporting long-term profitability.
Recurring Revenue Streams
Long-term contracts provide stable revenue, reducing volatility and ensuring consistent cash flow, which supports sustained operations.
Industry Position
Being a leader in high-precision components strengthens market position, enabling competitive advantages and potential for growth.
Negative Factors
Revenue Decline
Declining revenue indicates challenges in market demand or competitive pressures, which could impact future growth prospects.
Increased Leverage
Higher leverage can strain financial flexibility, increasing risk if cash flow generation does not improve to cover debt obligations.
Cash Flow Challenges
Reduced cash flow generation limits the company's ability to invest in growth and meet debt obligations, posing a risk to financial health.
Schoeller-Bleckmann Oilfield Equipment AG (SBOEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$498.75M
Dividend Yield6.96%
Average Volume (3M)33.00
Price to Earnings (P/E)14.2
Beta (1Y)0.72
Revenue Growth-12.73%
EPS Growth-35.34%
CountryUS
Employees1,596
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding160,000,000
10 Day Avg. Volume0
30 Day Avg. Volume33
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)0.93
Price to Sales (P/S)0.81
P/FCF Ratio7.15
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit3.99
Enterprise Value/Ebitda6.40
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Schoeller-Bleckmann Oilfield Equipment AG Business Overview & Revenue Model
Company DescriptionSCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft (SBO) is the global market leader in high-precision components made of high-alloy steel and a leading supplier of key components for the oilfield service industry. The business focus is on non-magnetic drillstring components and high-tech downhole tools for drilling and completing directional and horizontal wells.
How the Company Makes MoneySchoeller-Bleckmann Oilfield Equipment AG primarily generates revenue through the sale of its high-precision drilling equipment and related services. The company’s revenue model is based on multiple key streams, including the direct sale of drilling tools, completion equipment, and customized solutions for oilfield operations. Additionally, SBOEY benefits from long-term contracts and partnerships with major oil and gas companies, which provide a steady stream of income. The company also engages in aftermarket services, offering maintenance and support, which contributes to recurring revenue. Factors such as the volatility of oil prices, demand for energy, and technological advancements in drilling techniques significantly influence its earnings.
Schoeller-Bleckmann Oilfield Equipment AG Earnings Call Summary
Earnings Call Date:Nov 21, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Neutral
The call presented a mix of positive and negative aspects. While there are solid achievements in cash flow improvement, regional expansion, and strategic initiatives, the company faces sales decline, particularly in the AMS division, and challenges from foreign exchange losses.Q3-2024 Updates
Positive Updates
Solid Cash Flow and Balance Sheet Improvement
Free cash flow increased to more than EUR 42 million, significantly above the previous two years, driven by lower working capital. Cash increased significantly compared to half-year figures due to a successful financing round and strong cash flow generation. Net debt further decreased, and the gearing improved.
Regional Expansion and Strategic Achievements
Double-digit sales growth in the Middle East and Latin America. Successfully moved into a new facility in Saudi Arabia, providing more space for assembly, service, and sales activities. Won an ESG award, highlighting commitment to sustainability.
Oilfield Equipment Division Improvement
Oilfield Equipment returning to profitability with promising sales and profit increase in the third quarter, driven by internationalization efforts, despite a weak U.S. market.
Negative Updates
Sales Decline and Market Challenges
Sales decreased by 3% year-to-date compared to the previous year, impacted by weakness in the U.S. market. Group EBIT of EUR 51.8 million is well below the previous year.
AMS Division Performance Decline
AMS division faced a decline with EUR 222 million in sales compared to EUR 250 million the previous year, down 11%. Q3 performance impacted by lower sales, foreign exchange losses, and moderated customer demand.
Foreign Exchange Losses
Significant foreign exchange losses of almost EUR 3 million in the third quarter of AMS, impacting overall profitability.
Company Guidance
During the Q3 2024 earnings call for Schoeller-Bleckmann, the executives highlighted several financial metrics and provided guidance. The company achieved sales of EUR 425.6 million, a slight 3% decrease from the previous year, with Oilfield Equipment sales showing a 9% increase driven by international expansion. The bookings for Q3 were EUR 124 million, 4% lower than Q2, but 5% higher than Q1. EBIT for the group was reported at EUR 51.8 million, significantly lower than last year due to challenges in the Oilfield Equipment division's first half performance and foreign exchange losses in the AMS segment. Despite this, the company showed strong cash flow with a free cash flow exceeding EUR 42 million, and gearing improved to 19.6%. The executives emphasized ongoing efforts in regional expansion, particularly in the Middle East and Latin America, and noted a strategic recalibration to be shared in early 2025. While the long-term outlook remains positive, the near-term environment is cautious due to market volatility and economic slowdowns, with the AMS division experiencing moderated demand.Schoeller-Bleckmann Oilfield Equipment AG Financial Statement Overview
Summary
Schoeller-Bleckmann Oilfield Equipment AG demonstrates solid profitability margins with a strong gross profit margin and healthy EBIT and EBITDA margins. However, the company faces challenges with declining revenue growth and cash flow generation, and a decrease in net profit margin. The balance sheet shows moderate leverage and a stable capital structure, but there is a decline in shareholder returns and cash generation.Income Statement
The company shows a strong gross profit margin of 30.88% TTM, indicating efficient cost management. However, the net profit margin has decreased to 7.39% TTM, reflecting reduced profitability. Revenue growth has been negative at -3.11% TTM, suggesting challenges in maintaining sales momentum. Despite these challenges, the EBIT and EBITDA margins remain healthy at 13.37% and 19.30% TTM, respectively.72
Positive
Balance Sheet
The debt-to-equity ratio is 0.89 TTM, indicating moderate leverage, which is manageable but has increased from previous years. Return on equity is 8.45% TTM, showing a decline in shareholder returns. The equity ratio stands at 46.98% TTM, reflecting a stable capital structure with a reasonable level of equity financing.68
Positive
Cash Flow
The free cash flow growth rate is negative at -25.18% TTM, highlighting a decline in cash generation. The operating cash flow to net income ratio is 0.59 TTM, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is 0.60 TTM, suggesting a reasonable level of free cash flow relative to net income.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 493.02M | 560.45M | 585.87M | 501.24M | 292.81M | 291.16M |
| Gross Profit | 149.97M | 170.30M | 202.60M | 168.85M | 75.96M | 66.07M |
| EBITDA | 93.47M | 107.66M | 131.75M | 130.68M | 54.53M | 14.00M |
| Net Income | 32.52M | 45.32M | 71.57M | 75.20M | 20.98M | -21.70M |
Balance Sheet | ||||||
| Total Assets | 879.42M | 986.11M | 836.42M | 903.10M | 805.61M | 777.89M |
| Cash, Cash Equivalents and Short-Term Investments | 281.90M | 314.69M | 162.35M | 287.76M | 291.75M | 313.95M |
| Total Debt | 370.32M | 381.69M | 263.59M | 262.65M | 288.52M | 311.83M |
| Total Liabilities | 460.39M | 493.41M | 388.40M | 478.08M | 464.73M | 490.85M |
| Stockholders Equity | 419.03M | 492.70M | 448.02M | 425.02M | 340.88M | 287.04M |
Cash Flow | ||||||
| Free Cash Flow | 52.66M | 63.88M | 49.05M | 21.41M | 3.48M | 78.11M |
| Operating Cash Flow | 89.36M | 98.43M | 86.53M | 52.38M | 22.91M | 94.34M |
| Investing Cash Flow | -40.20M | -31.59M | -53.39M | -25.32M | -39.90M | -14.21M |
| Financing Cash Flow | -20.94M | 79.21M | -152.91M | -44.48M | -24.41M | -9.66M |
Schoeller-Bleckmann Oilfield Equipment AG Technical Analysis
Negative
3.17
Price Trends
3.24
Negative
3.22
Negative
3.37
Negative
Market Momentum
-0.02
Positive
44.03
Neutral
1.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBOEY, the sentiment is Negative. The current price of 3.17 is below the 20-day moving average (MA) of 3.23, below the 50-day MA of 3.24, and below the 200-day MA of 3.37, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 1.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBOEY.
Schoeller-Bleckmann Oilfield Equipment AG Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $541.34M | 20.17 | 29.09% | ― | 23.56% | 242.78% | |
72 Outperform | $769.69M | 23.93 | 12.31% | 0.24% | -1.02% | 6.34% | |
71 Outperform | $411.65M | 18.38 | 3.31% | ― | -11.02% | ― | |
71 Outperform | $498.75M | 14.19 | 7.12% | 6.96% | -12.73% | -35.34% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $972.23M | -56.33 | -2.05% | ― | -11.65% | 87.57% | |
45 Neutral | $683.69M | -1.85 | -31.46% | ― | -11.92% | -53.72% |
* Energy Sector Average
SBOEY
Schoeller-Bleckmann Oilfield Equipment AG
3.17
0.18
6.02%
CLB
Core Laboratories
16.53
-0.16
-0.96%
FTK
Flotek
18.01
8.39
87.21%
OIS
Oil States International
6.89
2.09
43.54%
PUMP
Propetro Holding
9.35
0.31
3.43%
ACDC
ProFrac Holding
3.78
-3.55
-48.43%
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.