Schlumberger (SLB) AI Stock Analysis

• Market Cap: $45.67B
• Dividend Yield: 3.31%
• Average Volume (3M): 20.58M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.85
• Revenue Growth: 5.83%
• EPS Growth: -2.03%
• Country: US
• Employees: 110,000
• Sector: Energy
• Sector Strength: 43
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.72
• Shares Outstanding: 1,360,161,600
• 10 Day Avg. Volume: 17,367,757
• 30 Day Avg. Volume: 20,576,639
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.25
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $48.00
• Price Target Upside: 39.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

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

Business Strategy

SLB's unique business contributions make it less sensitive to upstream spending compared to its peers.

Digital Growth

Growth within digital, smaller markets, new end markets, and cost efficiency improvements could set SLB apart.

Shareholder Returns

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

Negative Factors

International Revenue

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

North America Market

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

Oil Supply

Excess oil supply is expected to be a challenge in 2025, although management is optimistic about the market balancing over time.

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 through a diverse range of services and technology solutions tailored for the oil and gas industry. The company's primary revenue streams include the provision of drilling services, reservoir characterization, and production enhancement solutions. Schlumberger's drilling services involve the use of advanced technologies and equipment to optimize drilling operations, thereby increasing efficiency and reducing operational costs for clients. Reservoir characterization involves the use of seismic data and other technologies to analyze subsurface formations, aiding in the accurate assessment of resource potential. Additionally, production enhancement services focus on improving the recovery rates and operational efficiency of existing wells. The company often engages in long-term contracts and partnerships with major oil and gas companies, which contribute significantly to its earnings. These partnerships, along with its global presence and continuous investment in research and development, help maintain its competitive edge and drive revenue growth.

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

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

Schlumberger Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 34.32 is above the 20-day moving average (MA) of 34.06, below the 50-day MA of 37.66, and below the 200-day MA of 40.76, indicating a neutral trend. The MACD of -1.05 indicates Negative momentum. The RSI at 45.06 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, 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	77 Outperform	$12.22B	15.44	27.24%	0.69%	14.26%	294.37%
TS	76 Outperform	$19.94B	10.20	10.45%	4.01%	-15.28%	-45.42%
BKR	74 Outperform	$36.76B	12.67	18.04%	2.37%	6.22%	62.58%
SLB	72 Outperform	$45.67B	11.45	20.82%	3.31%	5.83%	-2.03%
NOV	71 Outperform	$4.47B	7.93	9.29%	2.52%	0.54%	-39.88%
HAL	70 Outperform	$17.71B	8.63	20.99%	3.50%	-2.54%	-17.53%
Sector *	56 Neutral	$6.91B	3.33	-4.86%	5.95%	0.04%	-50.82%

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.

Spark’s Take on SLB Stock

According to Spark, TipRanks’ AI Analyst, SLB is a Outperform.

Schlumberger demonstrates strong financial performance with impressive growth in digital and low carbon markets, stable margins, and effective equity usage. However, technical analysis indicates a bearish trend, and cash flow challenges present potential risks. Valuation is reasonable, with an attractive dividend yield. The positive guidance from the earnings call supports strong operational confidence and shareholder returns.

To see Spark’s full report on SLB stock, click here.