Schlumberger logged a 0.7% change during today's morning session, and is now trading at a price of $52.48 per share.
Over the last year, Schlumberger logged a -1.0% change, with its stock price reaching a high of $62.12 and a low of $42.73. Over the same period, the stock underperformed the S&P 500 index by -16.0%. As of April 2023, the company's 50-day average price was $57.77. Schlumberger Limited engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. Based in Houston, TX, the large-cap Energy company has 99,000 full time employees. Schlumberger has offered a 1.8% dividend yield over the last 12 months.
The Business Has Negative Margins on Average:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $32,815 | $32,917 | $23,601 | $22,929 | $28,091 | $31,191 |
| Operating Margins | 8.0% | -32.0% | -48.0% | 10.0% | 15.0% | 16.0% |
| Net Margins | 7.0% | 0.0% | 0.0% | 8.0% | 12.0% | 13.0% |
| Net Income (MM) | $2,177 | $30 | $32 | $1,928 | $3,492 | $3,993 |
| Net Interest Expense (MM) | $575 | $609 | $563 | $539 | $490 | $487 |
| Depreciation & Amort. (MM) | $3,556 | $3,589 | $2,566 | $2,120 | $2,147 | $2,206 |
| Earnings Per Share | $1.53 | -$7.32 | -$7.57 | $1.32 | $2.39 | $2.73 |
| Diluted Shares (MM) | 1,393 | 1,385 | 1,390 | 1,427 | 1,437 | 1,455 |
| Free Cash Flow (MM) | $3,553 | $3,707 | $1,828 | $3,510 | $2,102 | $3,284 |
| Capital Expenditures (MM) | $2,160 | $1,724 | $1,116 | $1,141 | $1,618 | $1,835 |
| Net Current Assets (MM) | -$18,190 | -$16,606 | -$17,026 | -$13,571 | -$10,143 | -$9,738 |
| Long Term Debt (MM) | $14,644 | $14,770 | $16,036 | $13,286 | $10,594 | $11,342 |
| Net Debt / EBITDA | 3.08 | -2.75 | -2.28 | 3.61 | 2.24 | 2.12 |
Schlumberger Has Elevated P/B and P/E Ratios:
Schlumberger has a trailing twelve month P/E ratio of 20.1, compared to an average of 7.54 for the Energy sector. Based on its EPS guidance of $3.31, the company has a forward P/E ratio of 17.5. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 10.1%. On this basis, the company's PEG ratio is 1.98, which suggests that it is overpriced. Furthermore, Schlumberger is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.85 is higher than the sector average of 1.68. The company's shares are currently trading 85.9% above their Graham number.
Schlumberger Has an Analyst Consensus of Some Upside Potential:
The 28 analysts following Schlumberger have set target prices ranging from $56.2 to $74.62 per share, for an average of $64.07 with a buy rating. As of April 2023, the company is trading -9.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Schlumberger has a very low short interest because 1.4% of the company's shares are sold short. Institutions own 83.4% of the company's shares, and the insider ownership rate stands at 0.2%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $6,849,476,121.
