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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Schlumberger N.V. (XNYS:SLB) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SLB
Name:
Schlumberger N.V. (XNYS:SLB)
Sector:
- 213000.00K
Industry:
Oil & Gas Equipment & Services
CEO:
Mr. Olivier Le Peuch
Total Employees:
92,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -123.91% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF SCHLUMBERGER N.V.(SLB) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND OIL & GAS EQUIPMENT & SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
37.895
One Month Price Target:
$38.28
Six Month Price Target :
$40.21
Likely Price in One Year's Time:
Ticker:
$42.52
Likely Trading Range Today Under (Normal Volatility)
$37.68
Price Upper limit ($) :
$38.16
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$35.03
This week:
$31.5
This month :
$25.1
Other Primary facts
Market Cap:
53.85B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
1.41B
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
19.91%
-27.42%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$51.17
$45.08
$24.62
$30.71
Medium risk (<10%) entry points
Buy Call
Sell Call
$43.09
Buy Put:
Sell Put:
$41.79
$32.68
$34.00
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SLB
Sharpe Ratio:
1.61%
Comparison:
SLB, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is 6.35% higher than the industry
& is -29.50% lower than the market/S&P 500 average
Average Returns/Yield of
SLB
Daily returns:
0.07%
Weekly returns:
0.34%
Monthly returns:
1.37%
Yearly returns:
19.19%
Comparison of returns:
Average annual returns/yield (last 3 years) is -14.40% below industry average
Classification:
SLB, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.89
Statistical test of Returns:
SLB has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.71%
Weekly Volatility:
8.29%
Monthly Volatility:
16.58%
Yearly Volatility:
57.45%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
3.37%
Volatility in last five trading days has been -9.06% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-7.55%
Weekly VaR:
-16.88%
Monthly VaR:
-33.75%
How Much Can the price of
SLB
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-29%
Worst case (decline):
>85%
This translates to price declining to:
$26.88
This translates to price declining to:
$5.68
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
SLB is a 138.23% riskier investment compared to the market/S&P 500 & is 104.09% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -13.56% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SLB
Beta in relation to market/S&P 500--1.82
Expected beta in 1 year's time:
0.956
Expected beta in 3 year's time:
1.352
Unlevered (debt free) Beta:
1.07
Beta in relation to Nasdaq (XNAS):
0.807
Beta in relation to all global stocks::
0.942
Beta Comparison & Analysis
Beta of competitors/peers::
1.458
Beta is 24.56% higher than peers
Average Industry Beta:
23.957
Beta is -92.42% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
8.79%
Sustainable growth rate is -1.82% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.008
Alpha is -100.56% below industry average alpha yield
Alpha is 53% compared to market & is healthy
Analysis of Cost of Capital of
SLB
Equity cost of capital:
0.156
Equity cost of capital is -90.68% below industry mean WACC
Unlevered (without debt) cost of capital:
9.18%
Before-tax cost of debt:
3.73%
After-tax cost of debt:
2.95%
Overall debt rating:
Upper medium A grade (third highest grade),CO8<=0.0429,"Medium BBB grade (Fourth highest grade)
Weighted average cost of capital (WACC):
2.95%
WACC is -87.43% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$16.73
Revenue growth rate per share of (3Y):
3.43
Annual revenue growth rate is -129.33% below industry average
EPS:
$1.46
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
$2.14
Balance sheet equity growth per share: -75.07%
Equity growth rate per share is 22.97% higher than the industry
Debt per share
$9.31
EBITDA per share
$3.70
Valuation Analysis Today of
SLB
P/E Ratio:
20.75
P/E Ratio of Competitors/Peers:
11.31
P/E ratio is 83.44% higher than main peers & is -18.36% lower than the industry
Stock price/value with industry average P/E ratio: $37.10
SLB is 2.14% overvalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $8.17
Present value of the expected future dividends only: $2.78
P/S (Price to Sales ratio):
2.26
Price to sales ratio is 48.76% above the industry mean
P/B (Price to book value ratio):
3.43
Price to free cash flow: 17.70
Price to free cash flow ratio is -36.27% lower than the industry
Net income growth rate (3Y):
-13.09%
Net income growth rate is -115.65% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 8.37%
Dividend yeild: 1.45%
Previous Dividend: $0.18
Previous adjusted dividend: $0.18
Previous Dividend: $0.55
Expected next dividend best case: $0.30
Expected next dividend worst case: $0.05
Average dividend payment (long-term): $0.20
Average dividend increase/decrease (growth rate) % per period: -3.50%
Expected next dividend payment date: 10/12/2022
Expected next dividend record date: 30/08/2022
-
Previous dividend payment date: 14/07/2022
Previous dividend record date: 06/01/2022
-
Dividend History:
2022-05-31--$0.18
2021-11-30--$0.13
2021-06-01--$0.13
2022-02-08--$0.13
2021-08-31--$0.13
2021-02-16--$0.13
Dividend growth rate is -89.39% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
85.77%
Net debt to equity ratio:
81.36%
Debt to assets ratio:
31.37%
Net debt to assets ratio:
29.75%
Debt-to-asset ratio is -43.30% below industry average
Ability to repay debt:
Interest coverage ratio:
9.94
Interest coverage ratio is 229.83% more than industry average
Looking forward:
Debt growth rate:
-15.94%
Annual debt growth is -120% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.537
Statistical significance of correlation:
SLB has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.416
Stock price is 29.08% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.416
Correlation of price movement with Nasdaq (^IXIC):
0.065
Covariance of price movement with the market:
0.14
Kurtosis
7.033
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.346
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
SLB
Gross Profit Margin Ratio:
66%
Operating Profit Margin Ratio:
12.57%
Operating profit margin is -607.52% lower than the industry
Net Profit Margin Ratio:
66%
Effective Tax Rate:
18.69%
Effective tax rate is -60.10% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
13.63%
Return on equity (ROE) is -138.10% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
4.98%
Return on assets (ROA) is -208.36% lower than the industry
Financial Leverage:
1.5x
Current Ratio:
1.24
Current ratio is -46.48% below industry average
Cash Conversion Cycle (days):
39.2
Cash conversion cycle is -39.01% below industry average
The remaining useful life of property plant & equipment is: 4.4 years
Stock based compensation to net income ratio:
4.25%
In-depth Efficiency Analysis
Revenue generated per employee:
257.3K
Each employee generates -3% less revenue than industry average revenue per employee
EBITDA generated per employee:
56.8K
Each employee generates 65% more EBITDA than industry average revenue per employee
Profit generated per employee:
22.7K
Each employee generates 341% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 2.3K
Each employee generates -47% less free cash flow than industry average revenue per employee
Assets/Capital per employee
312.1K
Each employee generates -47% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -4.48%
Growth rate in R&D investment/expenditure is -92.66% lower than the industry
Competitors/Peer firms of
SLB
PIONEER NATURAL RESOURCES COMPANY (XNYS:PXD)
TC Energy Corporation (XNYS:TRP)
ENTERPRISE PRODUCTS PARTNERS UNT (XNYS:EPD)
CEO
MARATHON PETROLEUM CORPORATION (XNYS:MPC)
CANADIAN NATURAL RESOURCES LIMITED (XNYS:CNQ)
EOG RESOURCES, INC. (XNYS:EOG)
KINDER MORGAN, INC. (XNYS:KMI)
SUNCOR ENERGY INC. (XNYS:SU)
Current Analyst Ratings
Strong buy�29%
Buy�79%
Hold�46%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
23.67B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
19.78B
3.89B
560.00M
355.00M
355.00M
-
-
915.00M
43.00M
526.00M
2.12B
5.23B
2.97B
2.09B
2.63B
491.00M
2.09B
Statement of Cash Flow
Date:
Period:
533.00M
Differed Income Tax :
- 14000.00K
Stock Based Compensation :
89.00M
Change in Working Capital :
- 978000.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
- 19000.00K
Net Cash Provided by Operating Activities:
131.00M
Investments in PP&E:
-
Net Acquisitions:
84.00M
Purchases of Investments:
- 168000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.60B
1.05B
2.65B
5.71B
3.72B
1.17B
13.25B
6.35B
12.98B
3.16B
1.96B
-
4.27B
28.71B
-
41.97B
8.64B
923.00M
940.00M
-
1.14B
10.70B
13.16B
2.39B
15.63B
-
26.33B
11.96B
8.53B
- 3639000.0K
-
March 31, 2022 at 6:00:00 AM
20.69B
15.35B
41.68B
3.00B
14.09B
12.5B
336.00M
- 367000.00K
- 115000.00K
-
-
-
- 175000.00K
5.00M
- 170000.00K
- 3000.00K
- 157000.00K
1.60B
1.76B
131.00M
- 344000.00K
- 213000.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
SLB
2023
2024
2025
2026
2027
$38.28
$42.95
$48.19
$54.07
$60.66