Schlumberger (SLB) AI Stock Analysis

• Market Cap: $48.49B
• Dividend Yield: 3.2%
• Average Volume (3M): 14.98M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.76
• Revenue Growth: 5.83%
• EPS Growth: -2.03%
• Country: US
• Employees: 110,000
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.72
• Shares Outstanding: 1,360,161,600
• 10 Day Avg. Volume: 19,095,511
• 30 Day Avg. Volume: 14,976,402
• PEG Ratio: -2.17
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.27
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 8.08
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $45.88
• Price Target Upside: 28.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 77 Outperform
• Price Target: $40.00 ▲(12.20%Upside)

Schlumberger's overall stock score reflects its strong financial performance and attractive valuation, tempered by operational challenges and mixed technical indicators. The company's strategic focus on digital and low carbon markets offers growth potential, but regional challenges and economic uncertainties weigh on the outlook.

Positive Factors

Financial Management

EBITDA margins improved due to effective cost actions, indicating efficient management.

Growth Opportunities

Energy Transition Technology portfolio provides significant long-term growth opportunities, in analyst's view.

Shareholder Returns

CEO Le Peuch reaffirmed SLB’s commitment to return $4bn of cash to shareholders.

Negative Factors

International Revenue Challenges

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

North America Market Weakness

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

Upstream Spending

SLB expects a decline in upstream spending, with a higher drop than initially communicated.

Schlumberger Business Overview & Revenue Model

Company Description

Schlumberger Limited, known as SLB, is a leading global technology company that provides a comprehensive range of services and products to the energy industry. Operating in over 120 countries, SLB offers integrated solutions for reservoir characterization, drilling, production, and processing. The company's expertise spans across various sectors, including oil and gas exploration, offshore and onshore drilling, and energy management, aiming to enhance efficiency and sustainability throughout the energy lifecycle.

How the Company Makes Money

Schlumberger generates revenue primarily through its extensive portfolio of oilfield services and technology-driven solutions. The company's revenue streams are categorized into four main divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. These divisions offer a range of products and services such as software solutions, subsurface evaluation, drilling technologies, completion and production optimization, and equipment for oil and gas extraction and processing. Schlumberger collaborates with major energy companies around the world, establishing long-term partnerships that often involve large-scale projects. Additionally, SLB focuses on digital transformation and sustainability, investing in technologies and practices that improve operational efficiencies and reduce environmental impact, which can also drive revenue growth through innovative service offerings.

Schlumberger Financial Statement Overview

Summary

Schlumberger's financial performance is strong, characterized by significant revenue growth, robust profit margins, and solid cash flow generation. The increase in debt levels warrants some caution, but overall financial health is robust with effective cost management and 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.08B	36.29B	33.13B	28.09B	22.93B	23.60B
Gross Profit	7.41B	7.46B	6.56B	5.16B	3.66B	2.60B
EBITDA	7.75B	7.98B	7.54B	6.43B	2.91B	-8.76B
Net Income	4.19B	4.46B	4.20B	3.44B	1.88B	-10.49B
Balance Sheet
Total Assets	49.00B	48.94B	47.96B	43.13B	41.51B	42.57B
Cash, Cash Equivalents and Short-Term Investments	3.90B	4.67B	3.99B	2.89B	3.14B	3.01B
Total Debt	14.00B	12.07B	11.96B	12.23B	14.20B	16.89B
Total Liabilities	28.25B	26.59B	26.60B	25.15B	26.23B	30.08B
Stockholders Equity	19.52B	21.13B	20.19B	17.99B	15.29B	12.49B
Cash Flow
Free Cash Flow	4.75B	4.47B	4.54B	2.00B	3.47B	1.73B
Operating Cash Flow	6.93B	6.60B	6.64B	3.72B	4.65B	2.94B
Investing Cash Flow	-3.43B	-3.15B	-2.78B	-1.39B	-919.00M	-2.35B
Financing Cash Flow	-3.38B	-2.77B	-2.51B	-2.38B	-2.82B	-873.00M

Schlumberger Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.65
• 50DMA: Positive
• 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 Positive. The current price of 35.65 is above the 20-day moving average (MA) of 34.83, above the 50-day MA of 34.34, and below the 200-day MA of 38.81, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 57.08 is Neutral, neither overbought nor oversold. The STOCH value of 79.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLB.

Schlumberger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	81 Outperform	$14.63B	18.42	27.24%	0.58%	14.26%	294.37%
TS	81 Outperform	$20.61B	11.72	10.45%	5.73%	-15.28%	-45.42%
SLB	77 Outperform	$48.49B	12.09	20.82%	3.20%	5.83%	-2.03%
HAL	75 Outperform	$18.50B	9.02	20.99%	3.16%	-2.54%	-17.53%
NOV	74 Outperform	$4.91B	8.72	9.29%	2.29%	0.54%	-39.88%
BKR	70 Outperform	$39.27B	13.54	18.04%	2.32%	6.22%	62.58%
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%

Schlumberger Corporate Events

SLB CEO Highlights Q2 Operational Challenges at Conference

On June 24, 2025, SLB CEO Olivier Le Peuch addressed the J.P. Morgan Energy, Power & Renewables Conference, highlighting the company’s operational challenges in the second quarter of 2025. Despite uncertainties in energy markets, including geopolitical tensions and tariff negotiations, SLB experienced a decline in activity in Saudi Arabia and Latin America, offset by growth in the Middle East and North Africa. The company anticipates flat revenue and EBITDA for the quarter, with the Well Construction division facing margin pressures. SLB remains committed to returning $4 billion to shareholders in 2025.

The most recent analyst rating on (SLB) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Schlumberger stock, see the SLB Stock Forecast page.

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.