The Most Important Facts About Schlumberger

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.