SCHLUMBERGER LTD's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. SCHLUMBERGER LTD has average liquidity. Currently, the Quick Ratio is 1.22 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 6.34% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||9010.0||12055.0|
|Net Income ($mil)||1124.0||1595.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||7274.0||6699.0|
|Total Assets ($mil)||64753.0||68086.0|
|Total Debt ($mil)||13341.0||13245.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||31.54||30.77|
|Return on Assets||6.71||9.64|
|Return on Equity||11.45||16.7|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||1265.45||1296.44|
|Div / share||0.5||0.4|
|Book value / share||30.0||31.27|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||6843387.0||8376327.0|
BUY. The current P/E ratio indicates a discount compared to an average of 29.41 for the Energy Equipment & Services industry and a premium compared to the S&P 500 average of 21.25. To use another comparison, its price-to-book ratio of 2.78 indicates valuation on par with the S&P 500 average of 2.83 and a significant discount versus the industry average of 65.63. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SCHLUMBERGER LTD proves to trade at a discount to investment alternatives within the industry.
|SLB 24.86||Peers 29.41||SLB 9.73||Peers 8.73|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
SLB is trading at a discount to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
SLB is trading at a premium to its peers.
|SLB 21.55||Peers 21.29||SLB NM||Peers 0.84|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
SLB is trading at a premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
SLB's negative PEG ratio makes this valuation measure meaningless.
|SLB 2.78||Peers 65.63||SLB -34.51||Peers -107.82|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SLB is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
SLB is expected to have an earnings growth rate that significantly exceeds its peers.
|SLB 2.37||Peers 1.57||SLB -4.84||Peers -1.56|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
SLB is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
SLB significantly trails its peers on the basis of sales growth
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