Schlumberger logged a 3.5% change during today's None session, and is now trading at a price of $54.5 per share. The S&P 500 index moved 2.3% and the Nasdaq posted a 2.8% change. SLB's trading volume is 10,162,741 compared to the stock's average volume of 12,785,635.
Schlumberger shares moved 55.2% over the last 52 weeks, with a high of $56.04 and a low of $30.65. During this time, the stock underperformed the S&P 500 index by 71.8%. As of January 2022, the company's 50-day average price is $52.0. Schlumberger Limited provides technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The large-cap Energy company has 92,000 full time employees and is based in Houston, TX. Schlumberger has returned a 1.1% dividend yield over the last 12 months.
Overview of the Company's Strong Financials:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $32,917 | $23,601 | $22,929 |
| Revenue Growth | n/a | -28.3% | -2.85% |
| Gross Margins | 12.8% | 11.0% | 16.0% |
| Gross Margins Growth | n/a | -14.06% | 45.45% |
| Operating Margins | 9.1% | 7.0% | 12.1% |
| Operating Margins Growth | n/a | -23.08% | 72.86% |
| Earnings Per Share | -$7.32 | -$7.57 | $1.32 |
| EPS Growth | n/a | -3.42% | 117.44% |
| Free Cash Flow (MM) | $3,476 | $1,727 | $3,471 |
| FCF Growth | n/a | -50.32% | 100.98% |
| Capital Expenditures (MM) | -$1,955 | -$1,217 | -$1,180 |
| Net Debt / EBITDA | 2.12 | 3.69 | 2.49 |
Schlumberger Is Overpriced:
Compared to the Energy sector's average of 9.11, Schlumberger has a trailing twelve month price to earnings (P/E) ratio of 26.3 and, based on its EPS guidance of 2.98, an expected P/E ratio of 18.3.
Schlumberger's price to book (P/B) ratio is 4.5 compared to its sector average of 1.45. The company is likley overvalued in terms of its net tangible assets. The company's shares are now trading 187.1% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * EPS * book value per share) = √(22.5 * 1.32 * 12.129) = $18.98
Schlumberger Is the Subject of Mixed Market Indicators:
28 analysts are following Schlumberger and have set target prices ranging from $44 to $69 per share. On average, they have given the company a rating of buy. At the current price of $54.5, SLB is trading -8.94% away from its average analyst target price of $59.85 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 1.5% of the company's shares are tied to short positions. Institutions own 85.8% of Schlumberger's shares, while the insider ownership rate stands at 0.15%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $6,714,992,633.
