One-glance verdict
Undervalued
$86.46 our estimate vs market $51.76
Wall Street consensus: $62.34 (-27.9% lower than our fair-value estimate)
40% below our estimate, below the bear case
Fundamentals snapshot
SLB N.V.
SLB · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$51.76
52-week range
$31.64 - $60.46
Market cap
$76.82B
Balance sheet
Watch
9.78x Adequate
Net debt $8.69B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1.8% last year.
- Reward Returns 12.9% on equity, ahead of 16% of its peers.
- Risk Stock trades 46.6% above its 5-year average P/E.
- Risk Operating margin compressed from 14.8% to 12.7% over 3 years.
What this company does
SLB N.V.
SLB provides the essential technology and services that energy companies use to find, drill for, and produce oil and gas around the world. The company makes money by selling a wide range of products and support, from drill bits and valves to complex software for managing drilling projects. Because SLB is a critical supplier to major energy producers, its business often thrives when oil and gas companies are actively investing in new projects.
How the company got here
SLB started in 1926 when two French brothers, Conrad and Marcel Schlumberger, had a new idea to map rocks under the ground using electrical measurements. This invention, called a well log, was a major breakthrough for finding oil and gas. The company grew from its French roots, establishing a major presence in Houston, Texas, and expanding across the globe. Over many decades, it grew by inventing new technologies and acquiring other companies, transforming from a well-logging specialist into a massive energy technology company that helps customers with everything from drilling to production. Formerly known as Schlumberger, the company rebranded to SLB to reflect its broader focus on energy innovation, including digital solutions and lower-carbon energy systems.
What it actually does
SLB is a technology and services company for the energy industry, primarily serving oil and gas producers. Think of them as a high-tech toolkit and expert crew for energy companies that are drilling for and producing oil and gas. They don't own the oil or gas themselves, but provide the specialized equipment, software, and services needed to find it, drill wells safely and efficiently, and get the resources out of the ground. Their work covers the entire lifecycle of a well, from the initial exploration of a potential site to managing its production and even plugging it at the end of its life.
Digital & Integration
This is SLB's technology-focused division that sells sophisticated software, data, and artificial intelligence (AI) solutions to energy companies. Customers pay for access to platforms like 'Delfi,' which acts like an operating system for energy exploration and production, helping them analyze underground data and make better decisions faster. This segment also manages complex, large-scale projects for customers, combining various services and technologies into a single offering. While it's the smallest of the four main business lines, it's strategically important as the energy industry increasingly relies on digital tools and automation.
Reservoir Performance
This part of the business is like a doctor for the underground rock formations, called reservoirs, that hold oil and gas. Its job is to understand these reservoirs and improve their performance. They use specialized tools sent down into the well (a technique called wireline logging) to measure rock and fluid properties, test how well the oil and gas can flow, and provide services to stimulate the reservoir to produce more. Energy companies pay for these services to maximize how much oil and gas they can recover from their assets.
Well Construction
This is the nuts and bolts of the drilling process, and it's one of SLB's largest business segments. This division provides everything an energy company needs to drill a well, from the drill bits that cut through the rock to the specialized drilling fluids (often called mud) that help the process run smoothly. They also offer advanced services like directional drilling, which allows for steering the well underground to reach specific targets, and cementing services to secure the well structure. Customers pay for these products and services to construct wells safely, efficiently, and accurately.
Production Systems
Once a well is drilled, this division provides the equipment and services needed to get the oil and gas out of the ground and to the surface over many years. This includes a wide range of hardware like pumps, valves, and underwater (subsea) equipment for offshore projects. They also provide services to manage and optimize production, helping to ensure a steady and efficient flow from the well. This segment has become the company's largest, especially after acquiring other companies that strengthened its offerings in production-related equipment and services.
What management is betting on now
SLB's leadership is focused on three main areas for growth: its core oil and gas services, digital technology, and new, lower-carbon energy systems. They are heavily investing in digital solutions and Artificial Intelligence (AI) to help customers work more efficiently and make faster, data-driven decisions. The company is also expanding into new energy areas like carbon capture and storage (capturing CO2 emissions before they reach the atmosphere) and geothermal energy. The strategy is to remain essential to the current oil and gas industry while also becoming a key technology provider for a future with lower carbon emissions.
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 Q3
$1.99B
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
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
Revenue
$9.16B
Net income
$1.19B
Diluted EPS
0.83
Operating cash flow
$2.45B
Free cash flow
$1.99B
Fetching…
Sources
Is it cheap or expensive?
Fair value $86.46 vs current price $51.76
Wall Street consensus is the average analyst price target: $62.34 (-27.9% lower than our fair-value estimate).
Our most-likely fair value is $86.46 a share — about 67.0% above today's price of $51.76, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $8.7B. Interest coverage 9.8x.
Net debt
$8.69B
Interest coverage
9.78x
SLB N.V.'s profit covers its interest bill about 9.8 times over. which is stronger than most peers shown here.
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.
Total debt $8.20B Interest coverage 8.78x -10% vs SLB Has roughly the same debt cushion as SLB.
Total debt $16.25B Interest coverage 16.02x +64% vs SLB Carries about 1.6x more debt cushion than SLB.
Total debt $2.33B Interest coverage 6.41x -34% vs SLB Carries about 1.5x less debt cushion than SLB.
Total debt $1.24B Interest coverage 17.11x +75% vs SLB Carries about 1.7x more debt cushion than SLB.
Total debt $1.62B Interest coverage 5.43x -44% vs SLB Carries about 1.8x less debt cushion than SLB.
What you should know
The case for and against SLB
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.8% last year.
-
Returns 12.9% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 46.6% above its 5-year average P/E.
-
Operating margin compressed from 14.8% to 12.7% over 3 years.
-
Insider ownership is only 0.2% (peer median: 0.7%).
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)
25.25x
Forward P/E
16.00x
P/B
2.95x
P/S
2.11x
EV/EBITDA
11.74x
PEG ratio
1.35x
Profitability
How much profit each dollar creates
Gross margin
17.0%
Operating margin
12.7%
Net margin
8.5%
ROE
12.9%
ROA
6.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.47x
Current ratio
1.44x
Quick ratio
0.94x
Total debt
$12.81B
Total cash
$4.12B
Growth
How the business has been compounding
Revenue TTM
$36.37B
Revenue 5Y CAGR
11.7%
EPS TTM
2.05
EPS 5Y CAGR
-0.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$6.53B
Free CF TTM
$4.79B
FCF margin
13.2%
Dividend
Shareholder payout
Yield
2.3%
Payout ratio
56.6%
Last ex-div date
2026-09-02