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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
14.2%
Sector: 6.7%
Dividend Analysis audit
INCOME
3.29%
Trailing Yield
$3.29
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
64%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, SCHLUMBERGER LIMITED/NV (SLB) receives a "Hold" rating with a composite score of 50.6/100, ranked #534 out of 4446 stocks. Key factor scores: Quality 50/100, Value 62/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
SCHLUMBERGER LIMITED/NV (SLB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SCHLUMBERGER LIMITED/NV Do?
Schlumberger Limited provides technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. It offers software, information management, and IT infrastructure services; consulting services for reservoir characterization, field development planning, and production enhancement; petro technical data services and training solutions; reservoir interpretation and data processing services; asset performance solutions; open and cased-hole services; exploration and production pressure and flow-rate measurement services; pressure pumping, well stimulation, and coiled tubing equipment for downhole mechanical well intervention, reservoir monitoring, and downhole data acquisition; and integrated production systems. The company also provides mud logging and engineering support services; drilling equipment and services for shipyards, drilling contractors, energy companies, and rental tool companies; land drilling rigs and related services; drilling tools; well cementing products and services; and well planning and drilling, engineering, supervision, logistics, procurement, contracting, and drilling rig management services, as well as supplies engineered drilling fluid systems; and designs, manufactures, and markets roller cone and fixed cutter drill bits. In addition, it offers well completion services and equipment; artificial lift production equipment and optimization services; valves; process systems; and integrated subsea production systems comprising wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services, as well as designs and manufactures onshore and offshore platform wellhead systems and processing solutions. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas. SCHLUMBERGER LIMITED/NV (SLB) is classified as a large-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Olivier L. Peuch and employs approximately 99,000 people, headquartered in HOUSTON, Texas. With a market capitalization of $75.1B, SLB is one of the prominent companies in the Energy sector.
SCHLUMBERGER LIMITED/NV (SLB) Stock Rating — Hold (April 2026)
As of April 2026, SCHLUMBERGER LIMITED/NV receives a Hold rating with a composite score of 50.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.SLB ranks #534 out of 4,446 stocks in our coverage universe. Within the Energy sector, SCHLUMBERGER LIMITED/NV ranks #65 of 128 stocks, placing it in the lower half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SLB Stock Price and 52-Week Range
SCHLUMBERGER LIMITED/NV (SLB) currently trades at $51.92. The stock lost $0.62 (1.2%) in the most recent trading session. The 52-week high for SLB is $52.40, which means the stock is currently trading -0.9% from its annual peak. The 52-week low is $31.11, putting the stock 66.9% above its annual trough. Recent trading volume was 13.2M shares, indicating strong institutional interest and high liquidity.
Is SLB Overvalued or Undervalued? — Valuation Analysis
SCHLUMBERGER LIMITED/NV (SLB) carries a value factor score of 62/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 19.54x, compared to the Energy sector average of 19.63x — a discount of 0%. The price-to-book ratio stands at 2.77x, versus the sector average of 1.64x. The price-to-sales ratio is 2.15x, compared to 0.47x for the average Energy stock. On an enterprise value basis, SLB trades at 15.57x EV/EBITDA, versus 3.50x for the sector.
Overall, SLB's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
SCHLUMBERGER LIMITED/NV Profitability — ROE, Margins, and Quality Score
SCHLUMBERGER LIMITED/NV (SLB) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 14.2%, compared to the Energy sector average of 6.7%, which is within a healthy range. Return on assets (ROA) comes in at 7.0% versus the sector average of 3.7%.
On a margin basis, SCHLUMBERGER LIMITED/NV reports gross margins of 17.4%, compared to 52.7% for the sector. The operating margin is 13.8% (sector: 10.7%). Net profit margin stands at 11.0%, versus 6.4% for the average Energy stock. Revenue growth is running at -2.3% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
SLB Debt, Balance Sheet, and Financial Health
SCHLUMBERGER LIMITED/NV has a debt-to-equity ratio of 101.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.33x, suggesting adequate working capital coverage. Cash and equivalents stand at $3.04B.
SLB has a beta of 0.83, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for SCHLUMBERGER LIMITED/NV is 58/100, reflecting average volatility within the normal range for its sector.
SCHLUMBERGER LIMITED/NV Revenue and Earnings History — Quarterly Trend
In TTM 2026, SCHLUMBERGER LIMITED/NV reported revenue of $35.12B and earnings per share (EPS) of $2.38. Net income for the quarter was $3.87B. Operating income came in at $4.86B.
In FY 2025, SCHLUMBERGER LIMITED/NV reported revenue of $35.71B and earnings per share (EPS) of $2.38. Net income for the quarter was $3.45B. Revenue grew -1.6% year-over-year compared to FY 2024. Operating income came in at $4.29B.
In Q3 2025, SCHLUMBERGER LIMITED/NV reported revenue of $8.93B and earnings per share (EPS) of $0.50. Net income for the quarter was $774M. Revenue grew -2.5% year-over-year compared to Q3 2024. Operating income came in at $1.00B.
In Q2 2025, SCHLUMBERGER LIMITED/NV reported revenue of $8.55B and earnings per share (EPS) of $0.75. Net income for the quarter was $1.05B. Revenue grew -6.5% year-over-year compared to Q2 2024. Operating income came in at $1.28B.
Over the past 8 quarters, SCHLUMBERGER LIMITED/NV has demonstrated a growth trajectory, with revenue expanding from $9.14B to $35.12B. Investors analyzing SLB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SLB Dividend Yield and Income Analysis
SCHLUMBERGER LIMITED/NV (SLB) currently pays a dividend yield of 3.3%. At this yield, a $10,000 investment in SLB stock would generate approximately $$329.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning SLB offers above-average income for its sector. The net margin of 11.0% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
SLB Momentum and Technical Analysis Profile
SCHLUMBERGER LIMITED/NV (SLB) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 20/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
SLB vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing SLB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SLB vs S&P 500 (SPY) comparison to assess how SCHLUMBERGER LIMITED/NV stacks up against the broader market across all factor dimensions.
SLB Next Earnings Date
No upcoming earnings date has been announced for SCHLUMBERGER LIMITED/NV (SLB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SLB? — Investment Thesis Summary
SCHLUMBERGER LIMITED/NV presents a balanced picture with arguments on both sides. The value score of 62/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 60/100, suggesting the trend favors buyers.
In summary, SCHLUMBERGER LIMITED/NV (SLB) earns a Hold rating with a composite score of 50.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SLB stock.
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Institutional Research Dossier
SCHLUMBERGER LIMITED/NV (SLB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Schlumberger (SLB) currently holds a Hold rating, a reflection of its mixed financial performance and valuation metrics. While the company demonstrates strong profitability relative to its sector, its revenue growth has been negative, and its debt levels are elevated. The current valuation appears fair, but not compelling enough to warrant a Buy rating given the risks associated with the cyclical nature of the energy industry and SLB's reliance on capital spending by oil and gas companies.
The key takeaway is that SLB's performance is heavily tied to the overall health of the energy sector. While the company has made strides in improving its operational efficiency and profitability, its ability to generate consistent revenue growth and manage its debt will be crucial for future success. Investors should closely monitor energy prices, capital expenditure trends in the oil and gas industry, and SLB's progress in its digital transformation initiatives before making any investment decisions.
Business Strategy & Overview
Schlumberger operates as a technology provider to the energy industry, offering a wide range of services and equipment across the oil and gas lifecycle, from exploration and production to well construction and reservoir management. The company's business is structured into four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. This broad portfolio allows SLB to capture revenue at various stages of the energy value chain, providing some diversification against fluctuations in specific segments.
SLB's strategic positioning revolves around technological innovation and integrated solutions. The company invests heavily in research and development to develop advanced technologies that improve efficiency, reduce costs, and enhance production for its clients. Its Digital & Integration division focuses on providing software, data analytics, and IT infrastructure services, reflecting the increasing importance of digitalization in the energy sector. The company aims to differentiate itself by offering comprehensive solutions that combine its technological expertise with its deep understanding of reservoir dynamics and well construction techniques.
A key aspect of SLB's strategy is its focus on international markets. The company has a significant presence in key oil and gas producing regions around the world, including the Middle East, Africa, and Latin America. This global footprint allows SLB to capitalize on growth opportunities in emerging markets and mitigate risks associated with regional economic downturns or political instability. However, it also exposes the company to currency fluctuations and geopolitical risks.
SLB's product pipeline is focused on developing technologies that address the evolving needs of the energy industry, including solutions for unconventional resources, deepwater exploration, and enhanced oil recovery. The company is also investing in technologies that support the energy transition, such as carbon capture and storage, geothermal energy, and hydrogen production. While these investments are still in their early stages, they represent a potential growth area for SLB in the long term.
The energy industry is highly competitive, with SLB facing competition from other large service providers such as Halliburton and Baker Hughes, as well as smaller, specialized companies. To maintain its competitive edge, SLB must continue to invest in innovation, deliver high-quality services, and build strong relationships with its clients. The company's ability to adapt to changing market conditions and capitalize on emerging opportunities will be crucial for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-2.3%
Sector: -1.2%
+97% VS SCTR
Economic Moat Analysis
Schlumberger possesses a narrow economic moat, primarily derived from its intangible assets and switching costs. The company's extensive portfolio of proprietary technologies, patents, and know-how in areas such as reservoir characterization, well construction, and production optimization creates a barrier to entry for competitors. These intangible assets allow SLB to offer differentiated solutions that improve efficiency and reduce costs for its clients, giving it a competitive advantage in the market.
Switching costs also contribute to SLB's moat. Oil and gas companies often rely on SLB's services and technologies for critical operations, such as drilling, completion, and production. Changing service providers can be costly and disruptive, as it requires retraining personnel, integrating new systems, and potentially risking operational inefficiencies. This creates a degree of customer stickiness, making it more difficult for competitors to win market share from SLB.
However, SLB's moat is not particularly wide due to the cyclical nature of the energy industry and the presence of strong competitors. The demand for SLB's services is heavily dependent on capital spending by oil and gas companies, which in turn is driven by energy prices. During periods of low energy prices, capital spending declines, and SLB's revenue and profitability suffer. This cyclicality limits the company's ability to generate consistent, predictable earnings.
Furthermore, SLB faces intense competition from other large service providers such as Halliburton and Baker Hughes, as well as smaller, specialized companies. These competitors offer similar services and technologies, and they often compete aggressively on price. This limits SLB's pricing power and makes it difficult to sustain high margins.
While SLB's intangible assets and switching costs provide it with a competitive advantage, its moat is not insurmountable. Competitors can invest in research and development to develop their own proprietary technologies, and oil and gas companies can switch service providers if they believe they can achieve better value or performance. Therefore, SLB must continuously innovate and improve its services to maintain its competitive edge.
The company's focus on digital transformation and integrated solutions could potentially widen its moat in the long term. By offering comprehensive solutions that combine its technological expertise with its deep understanding of reservoir dynamics and well construction techniques, SLB can create greater value for its clients and increase customer stickiness. However, it remains to be seen whether these initiatives will be successful in creating a more sustainable competitive advantage.
Financial Health & Profitability
Schlumberger's financial health presents a mixed picture. While the company exhibits strong profitability metrics compared to the energy sector, its revenue growth has been negative, and its debt levels are relatively high. The company's ROE of 14.2% significantly exceeds the sector average of 6.9%, indicating efficient use of equity. Similarly, its operating margin of 13.8% and net margin of 11.0% are higher than the sector averages of 10.6% and 6.3%, respectively, suggesting strong operational efficiency.
However, SLB's revenue growth has been a concern. The company's revenue declined by 2.3% in the most recent TTM period, compared to a sector decline of 1.7%. This suggests that SLB is underperforming its peers in terms of revenue generation. The quarterly financial history reveals fluctuating revenue and net income figures, reflecting the cyclical nature of the energy industry. While the company has shown improvement in profitability in recent quarters, consistent revenue growth remains a challenge.
SLB's debt-to-equity ratio of 101.00 is significantly higher than the sector average of 55.00, indicating a higher level of financial leverage. While the company has a current ratio of 1.33, suggesting sufficient liquidity to meet its short-term obligations, its high debt levels could pose a risk in a prolonged downturn in the energy market. The company's total cash of $3.04 billion provides some cushion, but managing its debt burden will be crucial for its long-term financial stability.
The absence of free cash flow data makes it difficult to assess the company's ability to generate cash from its operations. Free cash flow is a key indicator of a company's financial health, as it represents the cash available to reinvest in the business, pay down debt, or return to shareholders. Without this data, it is challenging to fully evaluate SLB's financial performance.
Overall, SLB's financial health is characterized by strong profitability but weak revenue growth and high debt levels. The company's ability to generate consistent revenue growth, manage its debt burden, and improve its free cash flow generation will be crucial for its future success. Investors should closely monitor these metrics to assess the company's financial performance.
Valuation Assessment
Schlumberger's valuation appears to be fair, but not particularly compelling, based on its current P/E and EV/EBITDA multiples. The company's P/E ratio of 19.6x is roughly in line with the sector average of 19.5x, suggesting that the stock is fairly valued relative to its earnings. However, its EV/EBITDA multiple of 4.1x is higher than the sector average of 3.5x, indicating that the stock may be slightly overvalued relative to its cash flow generation.
Given the company's negative revenue growth and high debt levels, a premium valuation is not warranted. While SLB exhibits strong profitability metrics compared to the sector, its lack of revenue growth and high leverage pose risks to its future performance. Therefore, a valuation that is in line with or slightly below the sector average seems appropriate.
The absence of free cash flow data makes it difficult to assess the company's valuation based on its cash flow generation. Free cash flow is a key metric for valuing companies, as it represents the cash available to reinvest in the business, pay down debt, or return to shareholders. Without this data, it is challenging to determine whether the stock is undervalued or overvalued based on its cash flow potential.
The company's historical valuation trends should also be considered. SLB's stock price has fluctuated significantly over time, reflecting the cyclical nature of the energy industry. During periods of high energy prices, the stock has traded at a premium valuation, while during periods of low energy prices, it has traded at a discount. Therefore, investors should be aware of the potential for significant price volatility.
Overall, SLB's valuation appears to be fair, but not particularly attractive, given its mixed financial performance and the risks associated with the energy industry. The stock is not significantly undervalued, and there are other companies in the sector that may offer better value. Investors should carefully consider the company's growth prospects, financial health, and risk profile before making any investment decisions.
Risk & Uncertainty
Schlumberger faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. One of the most significant risks is the cyclical nature of the energy industry. The demand for SLB's services is heavily dependent on capital spending by oil and gas companies, which in turn is driven by energy prices. A prolonged downturn in energy prices could lead to a significant decline in capital spending, resulting in lower revenue and profitability for SLB.
Another risk is the intense competition in the energy services market. SLB faces competition from other large service providers such as Halliburton and Baker Hughes, as well as smaller, specialized companies. These competitors offer similar services and technologies, and they often compete aggressively on price. This could limit SLB's pricing power and make it difficult to sustain high margins.
Technological disruption also poses a risk to SLB's business. The energy industry is constantly evolving, with new technologies emerging that could disrupt existing business models. SLB must continuously invest in research and development to stay ahead of the curve and maintain its competitive edge. Failure to adapt to technological changes could result in a loss of market share and a decline in profitability.
Geopolitical risks are also a concern for SLB, as the company operates in many countries around the world, including some that are politically unstable. Political instability, regulatory changes, or trade disputes could disrupt SLB's operations and negatively impact its financial performance. Currency fluctuations also pose a risk, as SLB generates revenue in multiple currencies.
Finally, SLB's high debt levels could pose a risk in a prolonged downturn in the energy market. While the company has a current ratio of 1.33, suggesting sufficient liquidity to meet its short-term obligations, its high debt levels could make it more vulnerable to financial distress if its revenue and profitability decline significantly.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSchlumberger is well-positioned to benefit from increased oil and gas activity as global economies recover and energy demand rises, driving increased capital spending by exploration and production companies.
BULL VIEWSLB's investments in digital technologies and integrated solutions will drive efficiency gains and cost savings for its clients, leading to increased market share and higher profitability.
The Bear Case
BEAR VIEWSchlumberger's high debt levels and negative revenue growth make it vulnerable to a prolonged downturn in the energy market, potentially leading to financial distress.
BEAR VIEWIncreased adoption of renewable energy sources and growing environmental concerns will reduce demand for oil and gas, negatively impacting SLB's long-term growth prospects.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SLB and 4,400+ other equities.
SCHLUMBERGER LIMITED/NV exhibits a 193% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.0%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
17.4%
Sector: 52.7%
Operating Margin
Core business profitability
13.8%
Sector: 10.7%
Net Margin
Bottom-line profitability
11.0%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+74%
Income Projection audit
A $10,000 investment would generate approximately $329 annually in dividends at the current trailing rate.
