SLB Limited (SLB) stock analysis

P/E above its 5-year median

SLB's P/E of 24.7 is above its own 5-year median of 19.5.

P/E above the industry

SLB's P/E of 24.7 is above the Oil and Gas Field Services median of 18.9.

EV/EBITDA above its 5-year median

SLB's EV/EBITDA of 11.6 is above its 5-year median of 10.2.

P/B above the industry

SLB's price-to-book of 2.89 is above the Oil and Gas Field Services median of 1.29.

Trading above fair value

The share price of $50.96 is above our fair value estimate of $38.85.

Margin of safety under 20%

The price is 31.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -0.6% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 4.6% over the last twelve months; the Oil and Gas Field Services median is 4.6%.

Guidance issued

The latest outlook (full-year 2026 Capital investment, Oct 23, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 12.0% over the last twelve months and averaged 18.6% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

SLB's return on equity of 12.0% is above the Oil and Gas Field Services median of 1.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 8.4% over the last twelve months, against a 5-year average of 11.0%.

Net margin above the industry

SLB's net margin of 8.4% is above the Oil and Gas Field Services median of 0.9%.

High debt

Debt is 42.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 133% five years ago to 42.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 57.1% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.39 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.81; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

SLB paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; SLB yields 2.3%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 55.9% of net income.

Covered by free cash flow

Dividends take 38.0% of free cash flow.