Key Factors to Evaluate Before Investing in Schlumberger (SLB)

By Emilio Sanchez • Friday, June 06 15:24 • Permanent Link

Shares of Oil & Gas Equipment & Services company Schlumberger jumped 2.2% today. With many investors piling into SLB without a second thought, it may be a good idea to take a closer look at the stock. Here are some quick facts to get you started:

Schlumberger has moved -25.7% over the last year, and the S&P 500 logged a change of 11.1%
SLB has an average analyst rating of buy and is -28.51% away from its mean target price of $47.29 per share
Its trailing earnings per share (EPS) is $2.95
Schlumberger has a trailing 12 month Price to Earnings (P/E) ratio of 11.5 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $3.67 and its forward P/E ratio is 9.2
The company has a Price to Book (P/B) ratio of 2.36 in contrast to the S&P 500's average ratio of 4.74
Schlumberger is part of the Energy sector, which has an average P/E ratio of 18.35 and an average P/B of 1.6
SLB has reported YOY quarterly earnings growth of -21.6% and gross profit margins of 0.2%
The company has a free cash flow of $3.03 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
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, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. It also offers subsurface geology and fluids evaluation information; stimulation services to restore or enhance well productivity through hydraulic fracturing, matrix stimulation, and water treatment; and intervention services to oil and gas operators. In addition, the company offers mud logging, directional drilling, measurement-while-drilling, and logging-while-drilling services, as well as engineering support services; supplies drilling fluid systems; designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies; well planning, well drilling, engineering, supervision, logistics, procurement, and contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services. Further, it provides artificial lift; supplies packers, safety valves, sand control technology, and various intelligent systems; midstream production systems; valves, chokes, actuators, and surface trees; and OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas.

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.