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What if I told you that Tech & EV’s aren’t the only sectors with absolute 
companies?
Don’t believe me? Check this out
Second Gem Of The Day
$SLB - Elite Energy Company & Dividend Stock
Schlumberger $SLB Fundamental Breakdown
A THREAD
companies? Don’t believe me? Check this out
Second Gem Of The Day
$SLB - Elite Energy Company & Dividend StockSchlumberger $SLB Fundamental Breakdown A THREAD
$SLB Short Summary:
$SLB is a leading oilfield services company that provides equipment & tech to the oil & gas industry world-wide
Price: $25.01
Sector: Energy
Industry: Oil-Gas Equipment & Services
52-Week Range: $12.05 - $35.05
BETA: 2.39
MKT Cap: 34.82B
Inst. Ownership: 76%
$SLB is a leading oilfield services company that provides equipment & tech to the oil & gas industry world-wide
Price: $25.01
Sector: Energy
Industry: Oil-Gas Equipment & Services
52-Week Range: $12.05 - $35.05
BETA: 2.39
MKT Cap: 34.82B
Inst. Ownership: 76%
Corporate Overview:
$SLB is a oilfield service GIANT and the largest member of S&P 1500 Oil & Gas sub-industry.
$SLB has 4 business divisions:
Well construction - 36% of 2020 revenues
Production systems - 28%
Reservoir Performance - 23%
Digital & Integration - 13%
$SLB is a oilfield service GIANT and the largest member of S&P 1500 Oil & Gas sub-industry.
$SLB has 4 business divisions:
Well construction - 36% of 2020 revenues
Production systems - 28%
Reservoir Performance - 23%
Digital & Integration - 13%
$SLB market share is mostly allocated to international markets
2020 Revenues:
77% International vs 13% North America
$SLB has seen it’s competitive advantages decimate in North America due to increasing competition
2020 Revenues:
77% International vs 13% North America
$SLB has seen it’s competitive advantages decimate in North America due to increasing competition
$SLB has adjusted well to this change
Management changed its L-T strategy to tailor its approach to international market position
$SLB has been consolidating its portfolio in North America, generating additional cash flow, and reducing its expenses in not-so-profitable areas
Management changed its L-T strategy to tailor its approach to international market position
$SLB has been consolidating its portfolio in North America, generating additional cash flow, and reducing its expenses in not-so-profitable areas
$SLB is an absolute GIANT among the oilfield companies
They have invested in human capital & expertise for understanding reservoirs better - this has allowed $SLB to pioneer innovative technology that has radically changed the Oil & Gas industry
$SLB is in a class of its own
They have invested in human capital & expertise for understanding reservoirs better - this has allowed $SLB to pioneer innovative technology that has radically changed the Oil & Gas industry
$SLB is in a class of its own
Now Key Financials 
EPS 2020
Q1: -$5.32
Q2: -$2.47
Q3: -$0.06
Q4: $0.27
EPS 2020 vs 2019
Q1: -1866.78%
Q2: -801.48%
Q3: 99.28%
Q4: 11.67%
Revenues 2020
Q1: $7.46B
Q2: $5.36B
Q3: $5.26B
Q4: $5.53B
Revenues 2020 vs 2019
Q1: -5%
Q2: -35.23%
Q3: -38.44%
Q4: -32.77%
Key Financials EPS 2020
Q1: -$5.32
Q2: -$2.47
Q3: -$0.06
Q4: $0.27
EPS 2020 vs 2019
Q1: -1866.78%
Q2: -801.48%
Q3: 99.28%
Q4: 11.67%
Revenues 2020
Q1: $7.46B
Q2: $5.36B
Q3: $5.26B
Q4: $5.53B
Revenues 2020 vs 2019
Q1: -5%
Q2: -35.23%
Q3: -38.44%
Q4: -32.77%
$SLB Valuation
P/E (TTM): 36.78
P/E (Forecasted): 17.44
Price/Sales: 1.5
Price/Book Value: 2.7
Price/Tangible Book Value: 24
Price/Cash Flow: 9.89
$SLB has an upper hand compared to it’s peers: $BKR $HAL $TS $NOV $HP and compared to the industry as a whole
P/E (TTM): 36.78
P/E (Forecasted): 17.44
Price/Sales: 1.5
Price/Book Value: 2.7
Price/Tangible Book Value: 24
Price/Cash Flow: 9.89
$SLB has an upper hand compared to it’s peers: $BKR $HAL $TS $NOV $HP and compared to the industry as a whole
$SLB Annual Growth
Sales Growth
1Y: -28.30%
5Y: -7.83%
EPS Growth
1Y: -3.52%
5Y: NA
Once again, $SLB bests most of its peers in Annual Growth category, falling short to only $BKR in 1Y Sales Growth, and dominating the other metrics
Sales Growth
1Y: -28.30%
5Y: -7.83%
EPS Growth
1Y: -3.52%
5Y: NA
Once again, $SLB bests most of its peers in Annual Growth category, falling short to only $BKR in 1Y Sales Growth, and dominating the other metrics
$SLB Dividends
Annual Yield: 2%
Payout Ratio: 50.22%
Coverage Ratio: -865.68%
YTD Dividends Paid: $0.88
Let’s look at the dividend growth rates for $SLB:
3Y CAGR: -24.08%
5Y CAGR: -15.24%
10Y CAGR: 0.41%
$SLB has 0 years in Dividend Growth history due to recent reductions
Annual Yield: 2%
Payout Ratio: 50.22%
Coverage Ratio: -865.68%
YTD Dividends Paid: $0.88
Let’s look at the dividend growth rates for $SLB:
3Y CAGR: -24.08%
5Y CAGR: -15.24%
10Y CAGR: 0.41%
$SLB has 0 years in Dividend Growth history due to recent reductions
$SLB Profitability
Gross Profit Margin: 11.06%
Operating Profit Margin: -46.14%
Net Profit Margin: -44.43%
Cash Flow Margin: -33.69%
Cash Flow/Share: -$5.70
Cash/Share: $2.16
Book/Share: $8.67
Tangible Book/Share: -$3.14
Enterprise Value: $49.12B
$SLB dominates this category
Gross Profit Margin: 11.06%
Operating Profit Margin: -46.14%
Net Profit Margin: -44.43%
Cash Flow Margin: -33.69%
Cash Flow/Share: -$5.70
Cash/Share: $2.16
Book/Share: $8.67
Tangible Book/Share: -$3.14
Enterprise Value: $49.12B
$SLB dominates this category
$SLB Financial Strength
Current Ratio: 1.23
Quick Ratio: 0.91
L-T Debt: $16.04B
L-T Debt/Capital: 54.59
Total Debt/Capital: 57.48
L-T Debt/Equity: 132.85%
Return on Capital: -28.22%
$SLB has the highest L-T Debt among its peer competition
Current Ratio: 1.23
Quick Ratio: 0.91
L-T Debt: $16.04B
L-T Debt/Capital: 54.59
Total Debt/Capital: 57.48
L-T Debt/Equity: 132.85%
Return on Capital: -28.22%
$SLB has the highest L-T Debt among its peer competition
$SLB Management Effectiveness
Return on Assets: -21.24%
Return on Equity: -58.71
Return on Investment: -28.22
To summarize $SLB key financials & ratios, I’d say - don’t forget that $SLB operates in a beat-down, recovering Energy sector
Keep that in mind
Return on Assets: -21.24%
Return on Equity: -58.71
Return on Investment: -28.22
To summarize $SLB key financials & ratios, I’d say - don’t forget that $SLB operates in a beat-down, recovering Energy sector
Keep that in mind
$SLB SWOT Analysis
Strengths
- Outstanding R&D & Innovation
- Unrivaled expertise in reservoirs and drilling
- Unrivaled Intellectual Capital
- Effective utilization of mature oil fields
- 0 alternatives in overseas markets
- Clean Energy transition
Strengths
- Outstanding R&D & Innovation
- Unrivaled expertise in reservoirs and drilling
- Unrivaled Intellectual Capital
- Effective utilization of mature oil fields
- 0 alternatives in overseas markets
- Clean Energy transition
$SLB strengths - commentary
$SLB has an unrivaled know-how in regards to drilling, understanding, and characterizing oil fields - they utilize mature fields very efficiently
$SLB also spends more than ALL of its competitors COMBINED on R&D = innovation & lower costs
$SLB has an unrivaled know-how in regards to drilling, understanding, and characterizing oil fields - they utilize mature fields very efficiently
$SLB also spends more than ALL of its competitors COMBINED on R&D = innovation & lower costs
$SLB Weaknesses
- Lack of focus on U.S shale
- Management’s lack of discipline: 2016 Cameron acquisition & 2001 Sema acquisition - although management has made amends to these bad decisions, there’s always a risk of history repeating itself
- Lack of focus on U.S shale
- Management’s lack of discipline: 2016 Cameron acquisition & 2001 Sema acquisition - although management has made amends to these bad decisions, there’s always a risk of history repeating itself
$SLB Opportunities
- DELFI: $SLB built differentiated digital tech via $GOOG & $MSFT partnerships - it provides an open, digital platform that embeds AI / Machine learning - it unites E&P lifecycle in the cloud
This SaaS subscription has 400% user growth since 2019
- DELFI: $SLB built differentiated digital tech via $GOOG & $MSFT partnerships - it provides an open, digital platform that embeds AI / Machine learning - it unites E&P lifecycle in the cloud
This SaaS subscription has 400% user growth since 2019
You just don’t see many Oil companies adding SaaS capabilities in their business model
This just shows how far ahead $SLB is compared to its peers in innovation
$SLB now has an additional income stream that’s growing at amazing rates
This is THE BIGGEST opportunity $SLB has
This just shows how far ahead $SLB is compared to its peers in innovation
$SLB now has an additional income stream that’s growing at amazing rates
This is THE BIGGEST opportunity $SLB has
$SLB Threats
Just like any other Oil & Gas company, $SLB faces risks such as:
- Economic risks: long-term oil & gas demands
- Geopolitical risk: Oil-producing countries seizing oil assets of international companies
- Legal risks due to environmental catastrophes
Just like any other Oil & Gas company, $SLB faces risks such as:
- Economic risks: long-term oil & gas demands
- Geopolitical risk: Oil-producing countries seizing oil assets of international companies
- Legal risks due to environmental catastrophes
$SLB is very-well positioned in terms of legal risks
$SLB New Energy primarily focuses on reducing the carbon footprint and generating Geothermal energy at scale.
$SLB has out-innovated its peers by having 100+ technologies that significantly reduce carbon emissions
$SLB New Energy primarily focuses on reducing the carbon footprint and generating Geothermal energy at scale.
$SLB has out-innovated its peers by having 100+ technologies that significantly reduce carbon emissions
$SLB ability to innovate, cut-down costs, and add additional income streams is just amazing.
$SLB also has unrivaled expertise in drilling and understanding reservoirs, enabling $SLB to be more cost-efficient
$SLB also has unrivaled expertise in drilling and understanding reservoirs, enabling $SLB to be more cost-efficient
$SLB has shown quarterly growth in revenues during such hard times for Energy sector
They have a long record of outperforming peers and overcoming hardships
$SLB is very shareholder-value-focused, and with a strong management team, I see them performing well in 2021
They have a long record of outperforming peers and overcoming hardships
$SLB is very shareholder-value-focused, and with a strong management team, I see them performing well in 2021
$SLB PT range: $34-$48 (Currently $25.01)
$SLB is very undervalued, with market failing to price-in its innovative capabilities and it’s tremendously wide moat derived from international market share
$SLB is in a league of its own and I am excited to watch them dominate
$SLB is very undervalued, with market failing to price-in its innovative capabilities and it’s tremendously wide moat derived from international market share
$SLB is in a league of its own and I am excited to watch them dominate
THIS IS NOT AN INVESTMENT ADVICE
I hope you enjoyed the breakdown
Analyze it
Understand Risk & Potential Reward
Make your decision
Yours truly,
Gio
I hope you enjoyed the breakdown
Analyze it Understand Risk & Potential Reward Make your decisionYours truly,
Gio
