Schlumberger (SLB) AI Stock Analysis

• Market Cap: $50.95B
• Dividend Yield: 3.31%
• Average Volume (3M): 16.16M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.78
• Revenue Growth: 0.94%
• EPS Growth: -4.63%
• Country: US
• Employees: 110,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.74
• Shares Outstanding: 1,493,639,200
• 10 Day Avg. Volume: 18,251,532
• 30 Day Avg. Volume: 16,158,252
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 8.08
• Enterprise Value/Ebitda: 7.43
• 1Y Price Target: $48.79
• Price Target Upside: 43.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 71 Outperform
• Price Target: $38.00 ▲(11.40% Upside)

Schlumberger's overall score reflects strong financial performance and positive earnings call insights, particularly the ChampionX acquisition and international growth. However, technical indicators suggest bearish momentum, and challenges in North America and cash flow constraints weigh on the outlook.

Positive Factors

ChampionX Acquisition

The acquisition of ChampionX is expected to drive growth and synergies across international markets, enhancing Schlumberger's competitive position and expanding its service offerings in production chemicals and artificial lift.

International Revenue Growth

Growth in international markets, particularly in the Middle East, Asia, and North Africa, indicates strong global demand and supports long-term revenue stability, offsetting regional challenges.

Digital Segment Growth

Significant growth in the digital segment underscores Schlumberger's innovation capabilities and positions the company well in the evolving digital landscape of the oil and gas industry.

Negative Factors

North America Revenue Decline

A decline in North American revenue highlights regional challenges, which could impact overall financial performance if not addressed, particularly in a key market like the US.

Reservoir Performance Decline

Declining revenue in the reservoir performance division suggests potential issues in service demand or execution, which could affect long-term profitability if trends persist.

Tariff Impact

Tariff impacts pose a risk to margin sustainability, potentially affecting profitability and financial flexibility in the face of global trade tensions.

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 diverse services and solutions offered to oil and gas companies. The company's key revenue streams include drilling services, reservoir characterization, and production services, with significant contributions from its digital technologies and software solutions. Schlumberger also benefits from long-term contracts with major energy firms, which provide a stable income base. Additionally, strategic partnerships and collaborations with other industry players enhance its service delivery and expand its market reach, further bolstering its earnings. The company's focus on innovation and efficiency allows it to maintain a competitive edge in the volatile energy market.

Schlumberger Financial Statement Overview

Summary

Schlumberger demonstrates solid profitability and efficient operations, with some concerns regarding revenue growth and cash flow trends. The balance sheet reflects a stable financial position with manageable leverage.

Income Statement

Schlumberger's income statement shows strong profitability with a consistent gross profit margin around 20% and a net profit margin above 11% in the TTM. However, the revenue growth rate has turned negative in the TTM, indicating a potential slowdown. Despite this, EBIT and EBITDA margins remain healthy, reflecting efficient operations.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.67 in the TTM, suggesting manageable leverage. Return on equity is robust at nearly 20%, showcasing effective use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which is concerning. The operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. However, the free cash flow to net income ratio remains strong, suggesting that the company is still generating significant cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.48B	36.29B	33.13B	28.09B	22.93B	23.60B
Gross Profit	7.10B	7.46B	6.56B	5.16B	3.66B	2.60B
EBITDA	7.72B	8.07B	7.54B	6.43B	4.62B	-8.76B
Net Income	4.09B	4.46B	4.20B	3.44B	1.88B	-10.49B
Balance Sheet
Total Assets	48.77B	48.94B	47.96B	43.13B	41.51B	42.43B
Cash, Cash Equivalents and Short-Term Investments	3.75B	4.67B	3.99B	2.89B	3.14B	3.01B
Total Debt	13.70B	12.07B	11.96B	12.23B	14.20B	16.89B
Total Liabilities	27.22B	26.59B	26.60B	25.15B	26.23B	29.95B
Stockholders Equity	20.30B	21.13B	20.19B	17.68B	15.00B	12.07B
Cash Flow
Free Cash Flow	4.66B	4.47B	4.54B	2.00B	3.47B	1.73B
Operating Cash Flow	6.64B	6.60B	6.64B	3.72B	4.65B	2.94B
Investing Cash Flow	-1.69B	-3.15B	-2.78B	-1.39B	-919.00M	-2.35B
Financing Cash Flow	-4.71B	-2.77B	-2.51B	-2.38B	-2.82B	-873.00M

Schlumberger Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLB, the sentiment is Negative. The current price of 34.11 is below the 20-day moving average (MA) of 35.05, below the 50-day MA of 34.47, and below the 200-day MA of 36.32, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 44.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLB.

Schlumberger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	81 Outperform	$16.34B	18.83	28.83%	0.52%	12.15%	91.88%
BKR	78 Outperform	$47.68B	15.82	17.22%	1.86%	2.13%	54.69%
HAL	77 Outperform	$21.23B	11.65	17.72%	2.79%	-4.08%	-29.26%
TS	73 Outperform	$19.88B	10.01	12.12%	4.61%	-12.06%	-21.43%
SLB	71 Outperform	$50.95B	12.02	19.78%	3.31%	0.94%	-4.63%
NOV	70 Outperform	$4.91B	11.12	7.24%	3.85%	-1.21%	-54.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%