One-glance verdict
Undervalued
$104.26 our estimate vs market $49.64
Wall Street consensus: $62.38 (-40.2% lower than our fair-value estimate)
52% below our estimate, below the bear case
Fundamentals snapshot
SLB N.V.
SLB · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$49.64
52-week range
$34.65 - $60.46
Market cap
$73.27B
Balance sheet
Watch
9.78x Adequate
Net debt $9.21B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.3% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 39.9% above its 5-year average P/E.
- Risk Operating margin compressed from 14.8% to 14.0% over 3 years.
What this company does
SLB N.V.
SLB N.V. provides technology and services to oil and gas companies that help them find, drill for, and produce energy. Their revenue mainly comes from these technology and service offerings, and it matters because it shows how much demand there is for energy exploration and production. The company's business relies on its ability to innovate and deliver essential services to keep the energy flowing.
How the company got here
SLB, formerly known as Schlumberger, was founded in 1926 by brothers Conrad and Marcel Schlumberger. They pioneered the use of electrical measurements to understand underground rock formations, which was a groundbreaking way to find oil and gas. Over the decades, the company expanded globally and broadened its technological offerings. Key moments include significant acquisitions like Cameron International in 2016, which expanded its capabilities in production systems and equipment, and a rebranding to SLB in 2025 to reflect its evolving focus beyond traditional oilfield services. This history shows a consistent drive to innovate and adapt within the energy sector.
What it actually does
SLB is a global technology company that provides essential products and services to the energy industry, primarily for finding, drilling, and producing oil and gas. Think of them as a high-tech toolkit and service provider for energy companies. They offer everything from advanced software and data analysis to specialized equipment and on-site expertise. Their goal is to help energy producers operate more efficiently and safely, while also developing solutions for lower-carbon energy sources.
Digital & Integration
This segment focuses on using digital technologies and data to improve energy operations. It involves providing software platforms, data processing, and digital services that help companies make better decisions faster, from exploring for resources to managing production. This part of SLB is like the 'brains' of the operation, using advanced analytics and cloud-based tools to optimize performance and efficiency across the energy value chain. It's a smaller but strategically important area, as digital solutions can lead to significant improvements in how energy is found and produced.
Reservoir Performance
The Reservoir Performance division is all about understanding what's underground and getting the most out of it. This includes services like evaluating rock formations and fluids (subsurface geology and fluids evaluation), and techniques to boost the output of oil and gas wells, such as hydraulic fracturing (stimulation services). They also offer intervention services to help maintain and improve production from existing wells. Essentially, this segment helps energy companies maximize the amount of oil and gas they can extract from a given area.
Well Construction
This is a core part of SLB's business, focusing on the complex process of drilling and building oil and gas wells. It encompasses a wide range of services and products, including drilling fluids, drill bits, measurement tools used while drilling (like mud logging and directional drilling), and cementing services. They provide the expertise and equipment needed to safely and efficiently drill wells from the surface down to the reservoir. This segment is crucial for bringing new energy resources into production.
Production Systems
Once a well is drilled, the Production Systems segment provides the technology to bring the oil and gas to the surface and manage its flow. This includes equipment like artificial lift systems (which help move fluids out of the well), subsea production systems for offshore operations (like wellheads and subsea trees), and surface equipment. They also supply chemicals that help with production and ensure the smooth flow of hydrocarbons. This segment is vital for the ongoing operation and output of energy fields.
What management is betting on now
SLB's management is focused on leveraging technology to address the world's energy needs while also tackling climate change. They are investing heavily in digital solutions and artificial intelligence to make energy operations more efficient and less carbon-intensive. A key strategic priority is expanding their role in the energy transition, which includes developing technologies for carbon capture, utilization, and storage (CCUS), geothermal energy, and hydrogen. This shows a commitment to both optimizing traditional energy production and pioneering new, lower-carbon energy systems for the future.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$1.78B
FY2025 Q1
$262.00M
FY2025 Q2
$771.00M
FY2025 Q3
$1.27B
FY2025 Q4
$2.49B
FY2026 Q1
$144.00M
FY2026 Q2
$900.00M
FY2026 Q3
$1.02B
Revenue
$9.45B
Net income
$735.00M
Diluted EPS
0.49
Operating cash flow
$1.51B
Free cash flow
$1.02B
Fetching…
Sources
Revenue
$8.97B
Net income
$786.00M
Diluted EPS
0.52
Operating cash flow
$1.36B
Free cash flow
$900.00M
Fetching…
Sources
Revenue
$8.72B
Net income
$752.00M
Diluted EPS
0.50
Operating cash flow
$487.00M
Free cash flow
$144.00M
Fetching…
Sources
Revenue
$9.74B
Net income
$824.00M
Diluted EPS
0.53
Operating cash flow
$3.00B
Free cash flow
$2.49B
Fetching…
Sources
Revenue
$8.93B
Net income
$739.00M
Diluted EPS
0.50
Operating cash flow
$1.68B
Free cash flow
$1.27B
Fetching…
Sources
Revenue
$8.55B
Net income
$1.01B
Diluted EPS
0.74
Operating cash flow
$1.14B
Free cash flow
$771.00M
Fetching…
Sources
Revenue
$8.49B
Net income
$797.00M
Diluted EPS
0.58
Operating cash flow
$660.00M
Free cash flow
$262.00M
Fetching…
Sources
Revenue
$9.28B
Net income
$1.09B
Diluted EPS
0.77
Operating cash flow
$2.39B
Free cash flow
$1.78B
Fetching…
Sources
Is it cheap or expensive?
Fair value $104.26 vs current price $49.64
Wall Street consensus is the average analyst price target: $62.38 (-40.2% lower than our fair-value estimate).
Our most-likely fair value is $104.26 a share — about 110.0% above today's price of $49.64, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $9.2B. Interest coverage 9.8x.
Net debt
$9.21B
Interest coverage
9.78x
SLB N.V. is healthier than 0 of 1 peers on balance-sheet leverage.
Watch
Worse cushion
Baseline
Better cushion
SLB
BASELINE
SLB N.V.
Total debt $12.81B Interest coverage 9.78x This is the baseline the peer rows are being compared against.
What you should know
The case for and against SLB
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.3% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 2.3% with 45-year payout history.
Risks
-
Stock trades 39.9% above its 5-year average P/E.
-
Operating margin compressed from 14.8% to 14.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
24.10x
Forward P/E
16.13x
P/B
2.81x
P/S
1.99x
EV/EBITDA
11.32x
PEG ratio
1.44x
Profitability
How much profit each dollar creates
Gross margin
16.6%
Operating margin
14.0%
Net margin
8.4%
ROE
11.7%
ROA
5.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.47x
Current ratio
1.39x
Quick ratio
0.90x
Total debt
$12.81B
Total cash
$3.60B
Growth
How the business has been compounding
Revenue TTM
$36.89B
Revenue 5Y CAGR
11.7%
EPS TTM
2.06
EPS 5Y CAGR
-0.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$6.36B
Free CF TTM
$4.79B
FCF margin
13.0%
Dividend
Shareholder payout
Yield
2.3%
Payout ratio
56.8%
Last ex-div date
2026-12-02