MMarketMath

SLB

StalwartQuality: Medium (69/100)

Schlumberger · Energy · Oil & Gas Equipment & Services

$54.00

52w 31.64 – 58.82

20y monthly, adjusted

Mkt cap

$80.1B

P/E

23.7

P/FCF

16.7

FCF yield

6.0%

ROE

12.9%

Shldr yield

2.0%

div 2.0% + bb 0.0%

What today's price assumes

At $80.1B, the market is pricing in 5.2% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew -2.8% per year — the price asks for acceleration beyond the historical record.

Simple DCF per-share range: $30 · $30 · $37 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 9.8× across 19 years, SLB would trade near $43/share (25th–75th percentile: $37–$51); it trades at 12.4× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+8.3%

Rev 5y

+8.6%

Rev 10y

+0.1%

EPS 5y

EPS 10y

+3.7%

FCF 5y

+21.3%

FCF 10y

−2.8%

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $23.3B
2008: $27.2B
2009: $22.7B
2010: $26.7B
2011: $36.6B
2012: $41.7B
2013: $45.3B
2014: $48.6B
2015: $35.5B
2016: $27.8B
2017: $30.4B
2018: $32.8B
2019: $32.9B
2020: $23.6B
2021: $22.9B
2022: $28.1B
2023: $33.1B
2024: $36.3B
2025: $35.7B
$0$20.0B$40.0B
07
11
15
19
23

Net income

2007: $5.2B
2008: $5.4B
2009: $3.1B
2010: $4.3B
2011: $5.0B
2012: $5.5B
2013: $6.7B
2014: $5.4B
2015: $2.1B
2016: −$1.7B
2017: −$1.5B
2018: $2.1B
2019: −$10.1B
2020: −$10.5B
2021: $1.9B
2022: $3.4B
2023: $4.2B
2024: $4.5B
2025: $3.4B
−$10.0B−$5.0B$0$5.0B
07
11
15
19
23

Free cash flow

2007: $3.4B
2008: $3.2B
2009: $2.9B
2010: $2.6B
2011: $1.9B
2012: $1.8B
2013: $5.8B
2014: $7.2B
2015: $6.4B
2016: $4.2B
2017: $3.6B
2018: $3.6B
2019: $3.7B
2020: $1.8B
2021: $3.5B
2022: $2.1B
2023: $4.7B
2024: $4.7B
2025: $4.8B
$0$2.0B$4.0B$6.0B
07
11
15
19
23

Diluted shares (lower is better)

2007: 1.2B
2008: 1.2B
2009: 1.2B
2010: 1.3B
2011: 1.4B
2012: 1.3B
2013: 1.3B
2014: 1.3B
2015: 1.3B
2016: 1.4B
2017: 1.4B
2018: 1.4B
2019: 1.4B
2020: 1.4B
2021: 1.4B
2022: 1.4B
2023: 1.4B
2024: 1.4B
2025: 1.4B
0500.0M1.0B
07
11
15
19
23

Margins

-40%-20%0%20%07101316192225
Net marginFCF margin

Capital returned (dividends + buybacks)

2007: $771.0M
2008: $964.0M
2009: $1.0B
2010: $1.0B
2011: $1.3B
2012: $1.4B
2013: $1.6B
2014: $2.0B
2015: $2.4B
2016: $2.6B
2017: $2.8B
2018: $2.8B
2019: $2.8B
2020: $1.7B
2021: $699.0M
2022: $848.0M
2023: $1.3B
2024: $1.5B
2025: $1.6B
$0$1.0B$2.0B
07
11
15
19
23

Cash vs long-term debt

$0$5.0B$10.0B$15.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $8.1B
Q3'23: $8.3B
Q4'23: $9.0B
Q1'24: $8.7B
Q2'24: $9.1B
Q3'24: $9.2B
Q4'24: $9.3B
Q1'25: $8.5B
Q2'25: $8.5B
Q3'25: $8.9B
Q4'25: $9.7B
Q1'26: $8.7B
Q2'26: $9.0B
$0$2.5B$5.0B$7.5B
23
24
24
25
26

Net income by quarter

Q2'23: $1.0B
Q3'23: $1.1B
Q4'23: $1.1B
Q1'24: $1.1B
Q2'24: $1.1B
Q3'24: $1.2B
Q4'24: $1.1B
Q1'25: $797.0M
Q2'25: $1.0B
Q3'25: $739.0M
Q4'25: $824.0M
Q1'26: $752.0M
Q2'26: $786.0M
$0$500.0M$1.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$9.0B+5.0%$786.0M−22.5%0.52$1.4B
Q1'26$8.7B+2.7%$752.0M−5.6%0.50$487.0M
Q4'25 *$9.7B+5.0%$824.0M−24.7%0.53$3.0B
Q3'25$8.9B−2.5%$739.0M−37.7%0.50$1.7B
Q2'25$8.5B−6.5%$1.0B−8.8%0.74$1.1B
Q1'25$8.5B−2.5%$797.0M−25.4%0.58$660.0M
Q4'24 *$9.3B+3.3%$1.1B−1.6%0.77$2.4B
Q3'24$9.2B+10.2%$1.2B+5.6%0.83$2.4B
Q2'24$9.1B+12.8%$1.1B+7.6%0.77$1.4B
Q1'24$8.7B+12.6%$1.1B+14.3%0.74$327.0M
Q4'23 *$9.0B+14.1%$1.1B+4.5%0.76$3.0B
Q3'23$8.3B+11.1%$1.1B+23.8%0.78$1.7B
Q2'23$8.1B+19.6%$1.0B+7.7%0.72$1.6B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+8.3%+8.6%+0.1%+2.0%
Operating cash flow+20.4%+17.1%−3.0%+1.1%
Free cash flow+31.6%+21.3%−2.8%+4.2%
EPS (diluted)−0.6%+6.3%+3.7%−2.4%
Equity+13.9%+16.7%−3.1%−1.2%
LT debt−2.8%−9.5%−3.9%
Diluted shares0.0%+0.7%+1.2%+0.9%
Stock price−0.4%+16.4%−1.0%+0.0%

$100, 3 years ago

$99vs $176 in SPY

-0.4% vs 20.7%/yr

$100, 5 years ago

$214vs $181 in SPY

16.4% vs 12.6%/yr

$100, 10 years ago

$91vs $412 in SPY

-1.0% vs 15.2%/yr

$100, 15 years ago

$100vs $813 in SPY

0.0% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$3.64

$41.3B created / $11.4B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

18.1%

OCF ÷ (equity + debt)

OCF / EV yield

7.2%

MC vs 10× OCF

1.23

≤1 = priced under 10× OCF

Debt / FCF

2.0y

SBC / FCF

6.9%

Owner earnings

$4.5B

OCF − capex − SBC

OE yield

5.6%

Share count 5y

+0.8%

per year; negative = buybacks

Growth engine (5y): reinvested 27.6% of operating cash flow at an incremental return of 45.8% — an organically fundable growth rate of about 12.6% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

17 of 22 checks pass · 77%. Checks with structurally missing inputs are excluded.

Growth & Consistency

4/6

  • Revenue growth

    8.6% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    · 5y CAGR ≥ 5%

    na
  • FCF growth

    21.3% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    6 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    6 of 10 · net income > 0 in ≥ 8 of last 10

    fail
  • Cash flow keeps up with sales

    17.1% vs 8.6% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

5/5

  • Net margin

    9.4% · ≥ 8%

    pass
  • Operating margin

    · ≥ 10%

    na
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    12.9% · ≥ 12%

    pass
  • Cash ROIC

    18.1% · ≥ 12%

    pass
  • FCF margin

    13.4% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $6.5B vs NI $3.4B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

3/3

  • Debt payable from cash flow

    2.0y · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    · cash ≥ 50% of LT debt

    na
  • Leverage

    0.37 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $26.1B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

2/4

  • Share count flat or shrinking

    0.8% · ≤ +0.5%/yr over ~5y

    fail
  • Stock comp restrained

    7% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    33% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    0 of 10 · buybacks in ≥ 5 of last 10 years

    fail

Valuation Discipline

3/4

  • FCF yield

    6.0% · ≥ 3%

    pass
  • Earnings multiple

    23.7 · P/E ≤ 25

    pass
  • Price asks less than history delivered

    5.2% vs -2.8% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    2.0% · dividends + buybacks ≥ 2% of market cap

    pass

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202535,7083,3742.356,4891,6944,7951,6023329,74226,1091,437
202436,2894,4613.116,6021,9314,6711,53331611,02321,1301,436
202333,1356,5234,2032.916,6371,9394,6981,31729310,84220,1891,443
202228,0915,0113,4412.393,7201,6182,10284831310,59417,6851,437
202122,9293,3651,8811.324,6511,1413,51069932413,28615,0041,427
202023,6012,401-10,518-7.572,9441,1161,8281,73439716,03612,0711,390
201932,9173,978-10,137-7.325,4311,7243,7072,76940514,77023,7601,385
201832,8154,1872,1381.535,7132,1603,5532,77034514,64436,1621,393
201730,4403,921-1,505-1.085,6632,1073,5562,77834314,87536,8421,388
201627,8103,273-1,687-1.246,2612,0554,2062,64726716,46341,0781,357
201535,4756,5102,0721.638,8052,4106,3952,41932614,44235,6331,275
201448,58010,5765,4384.1611,1953,9767,2191,9683293,13010,56537,8501,308
201345,2669,3446,7325.059,7883,9435,8451,6083153,47210,39339,4691,333
201241,7315,4904.106,5434,6941,8491,4323351,90534,7511,339
201136,5794,9973.675,8804,0041,8761,3002721,70531,2631,361
201026,6724,2673.385,5092,9122,5971,0401981,76431,2261,263
200922,7023,1342.595,3112,3952,9161,00618661719,1201,214
200827,1635,4354.456,8993,7233,17696417260916,8621,224
200723,2775,1774.206,2872,9313,35677113662314,9381,239

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.