Schlumberger Ltd

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SLB : NYSE : Basic Materials
$80.52 | %
Today's Range: 78.11 - 80.62
Avg. Daily Volume: 6,399,700
07/29/16 - 4:02 PM ET

Financial Analysis


SCHLUMBERGER LTD's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. SCHLUMBERGER LTD has average liquidity. Currently, the Quick Ratio is 1.41 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 13.20% 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 FY16 Q2 FY15
Net Sales ($mil)7164.09010.0
EBITDA ($mil)0.02443.0
EBIT ($mil)490.01476.0
Net Income ($mil)-2160.01124.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)11192.07274.0
Total Assets ($mil)81171.064753.0
Total Debt ($mil)21623.013341.0
Equity ($mil)42979.037965.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin11.8631.54
EBITDA Margin0.027.11
Operating Margin6.8416.38
Sales Turnover0.370.69
Return on Assets-2.076.71
Return on Equity-3.9211.45
Debt Q2 FY16 Q2 FY15
Current Ratio1.861.66
Debt/Capital0.330.26
Interest Expense149.087.0
Interest Coverage3.2916.97


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)1391.01265.45
Div / share0.50.5
EPS-1.560.88
Book value / share30.930.0
Institutional Own % n/a n/a
Avg Daily Volume6257460.09506045.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 2.59 indicates valuation on par with the S&P 500 average of 2.81 and a discount versus the industry average of 2.65. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, SCHLUMBERGER LTD seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SLB NM Peers 36.58   SLB 13.74 Peers 11.48

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

SLB's P/E is negative making this valuation measure meaningless.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SLB 42.91 Peers 78.27   SLB NA Peers 0.17

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SLB is trading at a valuation on par with 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SLB 2.59 Peers 2.65   SLB -135.41 Peers -202.07

Average. 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 valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SLB 3.72 Peers 2.57   SLB -32.88 Peers -33.46

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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