Schlumberger NV (NYSE:SLB) is a large cap company that operates within the energy equipment and services industry. Its market cap is $94 billion today, and the total one-year return is -14.8% for shareholders.
Schlumberger stock is underperforming the market. It's beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question, we've turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✓ Earnings-per-Share (EPS) Growth: Schlumberger reported a recent EPS growth rate of 96.79%. That's above the energy equipment and services industry average of -156.05%. That's a great sign. Schlumberger's earnings growth is outpacing that of its competitors.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the energy equipment and services industry is 72.01. And Schlumberger's ratio comes in at 64.62. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for Schlumberger stock is 47.12%. That's below the energy equipment and services industry average of 774.73%. The company is less leveraged.
✗ Free Cash Flow per Share Growth : Schlumberger's FCF has been lower than that of its competitors over the last year. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It's one of our most important fundamental factors.
✓ Profit Margins : The profit margin of Schlumberger comes in at -0.99% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Schlumberger's profit margin is above the energy equipment and services average of -25.06%. So that's a positive indicator for investors.
✓ Return on Equity : Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Schlumberger is 0.43%, and that's above its industry average ROE of -8.87%.
Schlumberger stock passes five of our six key metrics today. That's why our Investment U Stock Grader rates it as a Strong Buy.