Schlumberger Limited (SLB) Stock

Schlumberger Limited trades at a P/E ratio of 12.15, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 10.83 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 4.51 indicates a premium valuation even accounting for growth.

With a beta of 1.06, Schlumberger Limited is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.61 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Schlumberger Limited achieves a profit margin of 11.50%, meaning it retains $11.50 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 15.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 19.20% and ROA at 7.68%, the company generates strong returns on invested capital.

Schlumberger Limited's revenue declined by 6.50% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 3.90% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against OIL & GAS EQUIPMENT & SERVICES industry averages for proper context.

Schlumberger Limited offers a dividend yield of 3.15%, paying $1.12 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 3, 2025.

The dividend sustainability can be assessed through the payout ratio - Schlumberger Limited pays $1.12 per share in dividends against earnings of $2.89 per share, resulting in a payout ratio of 38.75%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Oct 9, 2025.

Schlumberger Limited has a market capitalization of $53.1B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.49B shares outstanding, the company's ownership is widely distributed. As a participant in the OIL & GAS EQUIPMENT & SERVICES industry, it competes with other firms in this sector.

Schlumberger Limited's book value per share is $15.03, while the current stock price is $36.32, resulting in a price-to-book (P/B) ratio of 2.42. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

29 analysts cover SLB with 90% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $46.57 implies 28.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:8 Strong Buy, 18 Buy, 3 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.