Schlumberger logged a -2.9% change during today's evening session, and is now trading at a price of $49.13 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 -18.0%. As of April 2023, the company's 50-day average price was $55.81. 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 | $32,024 |
| Revenue Growth | n/a | 0.31% | -28.3% | -2.85% | 22.51% | 14.0% |
| Operating Margins | 8% | -32% | -48% | 10% | 15% | 16% |
| Net Margins | 7% | 0% | 0% | 8% | 12% | 13% |
| Net Income (MM) | $2,177 | $30 | $32 | $1,928 | $3,492 | $4,210 |
| Net Interest Expense (MM) | $575 | $609 | $563 | $539 | $490 | $494 |
| Depreciation & Amort. (MM) | $3,556 | $3,589 | $2,566 | $2,120 | $2,147 | $2,252 |
| Earnings Per Share | $1.53 | -$7.32 | -$7.57 | $1.32 | $2.39 | $2.88 |
| EPS Growth | n/a | -578.43% | -3.42% | 117.44% | 81.06% | 20.5% |
| Diluted Shares (MM) | 1,393 | 1,385 | 1,390 | 1,427 | 1,437 | 1,458 |
| Free Cash Flow (MM) | $3,553 | $3,707 | $1,828 | $3,510 | $2,102 | $3,312 |
| Capital Expenditures (MM) | $2,160 | $1,724 | $1,116 | $1,141 | $1,618 | $1,917 |
| Current Ratio | 1.17 | 1.19 | 1.23 | 1.22 | 1.25 | 1.36 |
| Long Term Debt (MM) | $14,644 | $14,770 | $16,036 | $13,286 | $10,594 | $11,147 |
| Net Debt / EBITDA | 3.08 | -2.75 | -2.28 | 3.61 | 2.24 | 1.97 |
Schlumberger's P/B and P/E Ratios Are Higher Than Average:
Schlumberger has a trailing twelve month P/E ratio of 19.4, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $3.6, the company has a forward P/E ratio of 15.5. Schlumberger's PEG ratio is 2.21 on the basis of the 8.8% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Schlumberger is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.61 is higher than the sector average of 1.78. The company's shares are currently trading 66.2% above their Graham number.
There's an Analyst Consensus of Strong Upside Potential for Schlumberger:
The 28 analysts following Schlumberger have set target prices ranging from $61.0 to $81.0 per share, for an average of $69.54 with a buy rating. As of April 2023, the company is trading -19.7% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Schlumberger has a very low short interest because 1.2% 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 $6,412,859,055.
