Schlumberger Ltd

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SLB : NYSE : Basic Materials
$71.36 -0.73 | -1.01%
Today's Range: 71.065 - 72.28
Avg. Daily Volume: 7011700.0
05/24/17 - 4:00 PM ET

Financial Analysis


SCHLUMBERGER LTD's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SCHLUMBERGER LTD has average liquidity. Currently, the Quick Ratio is 1.16 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 increased by 14.83% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)6894.06520.0
EBITDA ($mil)1391.01566.0
EBIT ($mil)509.0710.0
Net Income ($mil)279.0501.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)7353.014432.0
Total Assets ($mil)76175.069141.0
Total Debt ($mil)18987.021487.0
Equity ($mil)40606.035359.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin24.6629.39
EBITDA Margin20.1724.01
Operating Margin7.3810.89
Sales Turnover0.370.46
Return on Assets-2.52.31
Return on Equity-4.74.51
Debt Q1 FY17 Q1 FY16
Current Ratio1.592.15
Debt/Capital0.320.38
Interest Expense139.0133.0
Interest Coverage3.665.34


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1389.481252.33
Div / share0.50.5
EPS0.20.4
Book value / share29.2228.23
Institutional Own % n/a n/a
Avg Daily Volume6897320.05511815.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 2.44 indicates a discount versus the S&P 500 average of 3.00 and a discount versus the industry average of 2.78. 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 84.55   SLB 17.83 Peers 25.34

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.

 

Discount. 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 significant discount 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 24.72 Peers 50.89   SLB NA Peers 0.65

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 2.44 Peers 2.78   SLB -210.40 Peers -56.74

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 discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SLB is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SLB 3.52 Peers 3.00   SLB -11.23 Peers -22.08

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 premium to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SLB has a sales growth rate that significantly exceeds its peers.

 

 

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