Slb Limited/Nv (NYSE: SLB)

Sector: Energy Industry: Oil & Gas Equipment & Services CIK: 0000087347
Market Cap 59.56 Bn
P/B 3.07
P/E 20.77
P/S 2.67
ROIC (Qtr) 9.78
Div Yield % 2.28
Rev 1y % (Qtr) 4.97
Total Debt (Qtr) 11.64 Bn
Debt/Equity (Qtr) 0.45
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About

Schlumberger Limited (SLB) is a global technology company specializing in the energy industry. Established in 1926, its headquarters are located in Paris, Houston, London, and The Hague. The company's primary focus lies in oil and gas exploration, production, and processing, making it a leading provider of technology and services within this sector. Schlumberger's main business activities encompass digital solutions, reservoir performance, well construction, and production systems, with a diverse customer base including national oil companies,...

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Investment thesis

Bull case

  • Strong operating cash flow of 6.49B provides robust 0.56x coverage of total debt 11.64B, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 33.09B provides 2.84x coverage of total debt 11.64B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 6.49B provides exceptional 84.27x coverage of minority interest expenses 77M, showing strong core operations.
  • Operating cash flow of 6.49B provides strong 19.55x coverage of stock compensation 332M, indicating sustainable incentive practices.
  • Operating cash flow of 6.49B provides exceptional 11.63x coverage of interest expenses 558M, showing strong debt service capability.

Bear case

  • Operating cash flow of 6.49B barely covers its investment activities of (1.41B), with a coverage ratio of -4.60, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 6.49B provides thin coverage of dividend payments of (1.60B) with a -4.05 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (1.41B) provide weak support for R&D spending of 709M, which is -1.99x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 4.77B show weak coverage of depreciation charges of 2.64B, with a 1.81 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 4.12B represents just -2.55x of debt issuance (1.62B), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Consolidation Items Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Oil & Gas Equipment & Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SLB Slb Limited/Nv 59.56 Bn 20.77 2.67 11.64 Bn
2 BKR Baker Hughes Co 59.13 Bn 22.85 2.13 6.09 Bn
3 FTI TechnipFMC plc 28.99 Bn 127.65 1.96 1.34 Bn
4 HAL Halliburton Co 28.83 Bn 22.47 1.30 8.13 Bn
5 WFRD Weatherford International plc 7.39 Bn 17.15 1.50 1.64 Bn
6 NOV NOV Inc. 7.09 Bn 48.90 0.81 2.34 Bn
7 VAL Valaris Ltd 6.32 Bn 15.83 2.61 1.09 Bn
8 KGS Kodiak Gas Services, Inc. 4.56 Bn 91.00 3.58 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.18 1.17
EV to Cash from Ops. EV/CFO 11.27 -3.30
EV to Debt EV to Debt 5.57 10.99
EV to EBIT EV/EBIT 17.00 4.49
EV to EBITDA EV/EBITDA 10.68 6.54
EV to Free Cash Flow [EV/FCF] EV/FCF 19.17 31.31
EV to Market Cap EV to Market Cap 1.09 1.36
EV to Revenue EV/Rev 2.91 2.02
Price to Book Value [P/B] P/B 3.07 1.73
Price to Earnings [P/E] P/E 20.77 20.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.11 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 48.10 5.49
Dividend per Basic Share Div per Share (Qtr) 1.15 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 39.54 6.68
Interest Coverage Int. cover (Qtr) 8.55 -10.19
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 9.11 -37.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -14.33 1,334.16
Dividend Growth (1y) % Div 1y % (Qtr) 3.62 4.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -21.58 -12.71
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.76 19.66
EBIT Growth (1y) % EBIT 1y % (Qtr) -21.33 -26.68
EBT Growth (1y) % EBT 1y % (Qtr) -24.13 39.97
EPS Growth (1y) % EPS 1y % (Qtr) -24.20 27.30
FCF Growth (1y) % FCF 1y % (Qtr) 3.13 -867.31
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -12.77 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.65 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.18 0.10
Cash Ratio Cash Ratio (Qtr) 0.21 0.62
Current Ratio Curr Ratio (Qtr) 1.33 2.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.45 0.88
Interest Cover Ratio Int Coverage (Qtr) 8.55 -10.19
Times Interest Earned Times Interest Earned (Qtr) 8.55 -10.19
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 20.80 16.47
EBIT Margin % EBIT Margin % (Qtr) 13.36 -0.62
EBT Margin % EBT Margin % (Qtr) 11.80 4.39
Gross Margin % Gross Margin % (Qtr) 18.20 30.41
Net Profit Margin % Net Margin % (Qtr) 9.40 2.67