SLB Limited
SLB
$0.00
-2.65%
SLB Limited, also known as Schlumberger, is the world's premier oilfield-services company. It is a global industry leader in innovation, focusing its strategy on three growth engines: core, digital, and new energy businesses.
SLB
SLB Limited
$0.00
Related headlines
Investment Opinion: Should I buy SLB Today?
Based on a synthesis of strong technical momentum, overwhelming analyst bullishness, reasonable valuation, and supportive geopolitical catalysts, the data supports a positive view. However, this is tempered by clear profitability headwinds and the stock's proximity to its recent high. The objective assessment of the provided data points to a Hold rating for new capital. Current shareholders may maintain positions to capture potential upside from oil price strength, but new investors might wait for a better entry point or clearer signs of margin stabilization.
Sign up to view all
SLB 12-Month Price Forecast
The analysis reveals conflicting signals: powerful price momentum and analyst support clash with deteriorating bottom-line results. The neutral stance reflects this balance, with medium confidence due to the high dependence on unpredictable oil market dynamics. The base case appears most likely, suggesting range-bound trading near current levels.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on SLB Limited's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
6 analysts
Implied Upside
—
vs. current price
Analyst Count
6
covering this stock
Price Range
$0 - $0
Analyst target range
Wall Street analysts show strong consensus support for SLB. Recent institutional ratings from firms like Bernstein, Goldman Sachs, Jefferies, Barclays, and JP Morgan are overwhelmingly positive, with actions such as 'Outperform', 'Buy', and 'Overweight'. Analyst estimates project an average EPS of $4.18 and average revenue of $41.15 billion for the upcoming period.
Bulls vs Bears: SLB Investment Factors
SLB presents a mixed picture with strong technical momentum and analyst support counterbalanced by recent profitability declines and its position near a 52-week high. The stock's fate is closely tied to the cyclical oilfield services sector, which is currently benefiting from geopolitical tensions supporting oil prices. Overall, the bullish factors appear slightly more compelling in the near term, but risks are elevated.
Bullish
- Strong Technical Momentum: Stock up 50.66% over 6 months, significantly outperforming the S&P 500.
- Analyst Consensus Support: Overwhelmingly positive ratings from major institutions (Outperform, Buy).
- Solid Financial Health: Strong free cash flow ($4.8B TTM), moderate debt (D/E 0.47), and good liquidity.
- Geopolitical Catalyst: Rising oil prices from tensions benefit oilfield services demand.
Bearish
- Profitability Pressure: Q4 net income fell 27% YoY; net margin declined from 11.79% to 8.21%.
- Near 52-Week High: Trading at 93.8% of its 52-week high, suggesting limited near-term upside.
- Cyclical Industry Risk: Performance is heavily tied to volatile oil prices and capital expenditure cycles.
- Modest Revenue Growth: Q4 revenue grew only 4.97% YoY, indicating a potential growth slowdown.
SLB Technical Analysis
Overall Assessment: The stock has demonstrated a strong upward trend over the past six months, with a 50.66% gain, significantly outperforming the broader market. This performance is supported by a 33.90% gain over three months and a 9.74% gain over one month, indicating sustained positive momentum.
Short-term Performance: In the most recent month, the stock gained 9.74%, which is a strong positive performance, especially when compared to the S&P 500's decline of 5.25% over the same period, resulting in a relative strength of 5.35%. Over three months, the stock's 33.90% gain vastly outperformed the S&P 500's 4.63% decline, showing exceptional strength.
Current Position: The current price of $51.39 is near the upper end of its 52-week range of $31.11 to $54.80, trading at approximately 93.8% of its 52-week high. This indicates the stock is in a strong position, though it may be approaching a potential resistance level.
Beta
0.71
0.71x market volatility
Max Drawdown
-25.2%
Largest decline past year
52-Week Range
$31-$55
Price range past year
Annual Return
+18.6%
Cumulative gain past year
| Period | SLB Return | S&P 500 |
|---|---|---|
| 1m | -2.4% | -3.7% |
| 3m | +30.4% | -4.1% |
| 6m | +46.0% | -2.1% |
| 1y | +18.6% | +16.1% |
| ytd | +24.5% | -3.9% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
SLB Fundamental Analysis
Revenue & Profitability: Revenue for Q4 2025 was $9.745 billion, representing a year-over-year growth of 4.97% compared to Q4 2024. However, net income for Q4 2025 was $800 million, a decline from $1.095 billion in the same quarter the prior year, indicating pressure on profitability. The quarterly net margin was 8.21%, down from 11.79% in Q4 2024.
Financial Health: The company maintains a moderate debt level with a debt-to-equity ratio of 0.47, suggesting a balanced capital structure. The current ratio of 1.33 indicates sufficient short-term liquidity. Free cash flow over the trailing twelve months was a healthy $4.795 billion, providing financial flexibility.
Operational Efficiency: The return on equity (ROE) stands at 12.83%, and return on assets (ROA) is 6.77%, indicating reasonable efficiency in generating profits from shareholder equity and company assets. The operating margin from the latest quarter was 14.95%, reflecting solid core operational performance.
Quarterly Revenue
$9.7B
2025-12
Revenue YoY Growth
+0.04%
YoY Comparison
Gross Margin
+0.17%
Latest Quarter
Free Cash Flow
$4.8B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is SLB Overvalued?
Valuation Level: With positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 16.85, and the forward P/E is 15.44, based on estimated EPS of $4.18. This suggests the stock is trading at a moderate earnings multiple.
Peer Comparison: Data for direct industry average valuation multiples is not available in the provided inputs. Therefore, a comparative analysis against sector peers cannot be performed. The company's Price-to-Sales (P/S) ratio is 1.58, and its Enterprise Value-to-Sales (EV/Sales) is 2.42, offering additional context for its valuation.
PE
16.9x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 11x~32x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
9.2x
Enterprise Value Multiple
Investment Risk Disclosure
SLB's primary risks stem from its cyclical dependence on the energy sector. Financial data shows a significant year-over-year decline in Q4 2025 net income (27%) and net margin, indicating potential operational or cost pressures despite revenue growth. The company's valuation, while not extreme, leaves little margin for error as it trades near its 52-week high. Market conditions pose a dual risk: while current geopolitical tensions support oil prices and service demand, a sudden de-escalation or global economic slowdown could rapidly reverse this tailwind. Furthermore, the high short interest ratio of 3.69 signals that a segment of the market is betting against the stock, which could lead to increased volatility. The company's strategic shift towards digital and new energy, while a long-term positive, requires sustained investment that may pressure margins in the interim.
FAQ
Key risks include its cyclical dependence on oil prices and E&P spending, which can reverse quickly. Financial risk is evident in the declining net margin (8.21% in Q4 2025 vs. 11.79% a year prior). Additionally, high short interest (ratio 3.69) indicates bearish sentiment that could fuel volatility. Geopolitical events driving current oil prices are inherently unpredictable.
The 12-month forecast presents a base case target range of $48-$55, derived from the analyst EPS consensus of $4.18 and a forward P/E near 15.5x. The bull case ($58-$65) depends on higher oil prices and margin expansion, while the bear case ($35-$42) aligns with a drop towards the 52-week low if the oil cycle turns. The most probable outcome is range-bound trading near current levels.
SLB appears fairly valued. Its forward P/E ratio of 15.44 is moderate and not indicative of extreme overvaluation or undervaluation. The Price-to-Sales ratio of 1.58 and EV/Sales of 2.42 are within a reasonable range for a market leader. The valuation seems to appropriately reflect both its growth engines and cyclical risks.
The data suggests SLB is a Hold, not a strong Buy, at its current price near the 52-week high. While technicals are strong and analysts are bullish, Q4 net income fell 27% year-over-year, indicating profitability pressure. A new investor might wait for a pullback or clearer evidence of margin recovery before establishing a full position.
SLB is more suitable for medium-to-long-term investors who can weather the volatility of the energy cycle. The short-term outlook is uncertain due to the stock's high momentum and proximity to resistance. Long-term investors can benefit from the company's digital and energy transition strategies, but must accept the inherent cyclicality of its core oilfield services business.