Reasons Schlumberger (USA Stocks:SLB) can excite investors

Schlumberger NV, a leading player in the Energy Equipment & Services sector, presents a potential buying opportunity as its shares experienced a dip today. Despite the current market turbulence, the company has shown robust fundamentals. With a Return On Assets of 6.74% and an Operating Margin of 15.49%, Schlumberger NV has demonstrated its ability to generate profits from its assets efficiently. The company's Profit Margin stands at 12.94%, indicating a healthy bottom line. The company's Gross Profit of $5.2 billion and Net Interest Income of $120 million further underline its strong financial health. Analysts remain optimistic about the company's prospects, with 16 strong buy recommendations and 3 buy recommendations. The Wall Street Target Price is set at $65.07, suggesting a potential upside from the current price. The company also offers a dividend yield of 1.75%, with a dividend per share of $0.775, adding an additional income stream for investors. Despite the day's dip, Schlumberger NV's solid fundamentals make it a potential buy for investors seeking exposure in the Energy sector. Schlumberger NV's average assets are projected to decrease significantly, based on the reporting trends of the last few years. The company's average assets were valued at 43.01 billion the previous year. The current year's earnings before tax are expected to grow to approximately 4.6 billion, whereas the earnings before interest, taxes, depreciation, and amortization (EBITDA) are forecasted to decline to about 5.6 billion. As conservative investors increasingly turn their attention to the energy equipment and services sector, Schlumberger NV could potentially be on their radar. This article will analyze why the upcoming year could be much more favorable for Schlumberger shareholders. Additionally, I will discuss various factors influencing Schlumberger's products and services and explain how these may impact the company's investors.
Published over a year ago
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Reviewed by Rifka Kats

Schlumberger NV, a leading player in the Oil & Gas Equipment & Services industry, is currently trading on the NYSE with a PE Ratio of 21.40. Despite a slight dip in the share price today, with a Day Median Price of $57.28, it's important to note that the Wall Street Target Price stands at a promising $65.07. This suggests a Potential Upside of 3.98%, presenting a potential buying opportunity for investors. The company has shown robust financial performance with an Income Before Tax of $4.3B and a Net Interest Income of $120M. The company's solid financial standing, coupled with its potential for growth, makes Schlumberger NV a stock worth considering for investment. For more information, visit their website at www.slb.com.

Additional examination

The average rating for Schlumberger NV stock is 'Buy', as suggested by 19 analysts. Our recommendation module offers an impartial trading recommendation that can be utilized to supplement the current average analyst sentiment on Schlumberger NV. Our recommendation engine provides guidance on the company's potential for growth, taking into account an investor's risk tolerance and investment horizon.
The performance of Schlumberger NV in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Schlumberger's stock prices. When investing in Schlumberger, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Schlumberger Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Schlumberger carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Schlumberger earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Schlumberger dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Schlumberger one year expected dividend income is about USD0.67 per share.
The current year's Dividend Payout Ratio is expected to grow to 0.34, whereas Dividends Paid is forecasted to decline to about 1.1 B.
Last ReportedProjected for Next Year
Dividends Paid1.3 B1.1 B
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.31  0.34 
Dividend Paid And Capex Coverage Ratio 1.95  1.00 
Investing in dividend-paying stocks, such as Schlumberger NV is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Schlumberger must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Schlumberger. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Schlumberger's Liquidity

Schlumberger financial leverage refers to using borrowed capital as a funding source to finance Schlumberger NV ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Schlumberger financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Schlumberger's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Schlumberger's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Schlumberger's total debt and its cash.

What do experts say about Schlumberger?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

An Additional Perspective On Schlumberger NV

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Schlumberger has an asset utilization ratio of 65.12 percent. This suggests that the company is making $0.65 for each dollar of assets. An increasing asset utilization means that Schlumberger NV is more efficient with each dollar of assets it utilizes for everyday operations.
 2020 2021 2022 2023 (projected)
Current Assets12.92 B12.65 B15 B16.17 B
Total Assets42.43 B41.51 B43.13 B48.25 B
Schlumberger NV (SLB.US), a leading player in the Oil & Gas Equipment & Services industry, presents a potential buying opportunity as shares dip today. The company, headquartered at 5599 San Felipe, Houston, TX, United States, 77056, has a robust financial profile with a net asset value of $43.13 billion and a market capitalization of $81.76 billion.
Despite the current dip, Schlumberger has demonstrated a positive five-year return of 3.86%, and its EPS estimate for the current year stands at 3. The company's financial health is further evidenced by its current ratio of 1.40X and a Price to Book ratio of 4.16X. Schlumberger's operating income is a healthy $4.8 billion, and the company has reported a net income of $3.49 billion. With a workforce of 99,000 full-time employees, Schlumberger has managed to achieve a quarterly revenue growth rate of 0.298. Despite the downside deviation of 2.16, the company's Treynor Ratio of 0.1111 indicates a positive risk-adjusted performance. With a current valuation of $92.36 billion and a target price of $65.07, Schlumberger NV stock could be a valuable addition to your portfolio. .

Schlumberger has 98 percent likelihood to slip below $56 in August

Schlumberger NV's stock is currently displaying a significant degree of volatility, as indicated by its coefficient of variation, which is currently at 1345.88. This increased volatility, in conjunction with other market indicators, suggests a 98 percent probability that the stock will fall below $56 in August. Investors are advised to exercise caution and take this potential downside risk into account when making investment decisions. At present, Schlumberger NV exhibits a below-average downside deviation. It has an Information Ratio of 0.05 and a Jensen Alpha of 0.1. However, we recommend investors to further scrutinize Schlumberger NV's expected returns to ensure all indicators align with the current outlook about its relatively low value at risk. Understanding different market volatility trends can often assist investors in timing the market. Proper utilization of volatility indicators allows traders to gauge Schlumberger's stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect Schlumberger's stock price, causing stress to investors as they witness their shares' value decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. Despite today's slip, Schlumberger NV still holds potential for investors. With an analyst target price estimated value of $66.05, there is a possible upside price of $61.99, indicating room for growth. Furthermore, the analyst overall consensus is a 'Buy', with 16 strong buys out of 20 estimates. The valuation real value is currently at $59.6, slightly above the naive expected forecast value of $59.74. However, investors should also be aware of the possible downside price of $57.49 and the current valuation market value of $57.26. Overall, Schlumberger NV presents a balanced investment opportunity with potential for both growth and risk. .

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