SLB N.V. (SLB)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. SLB is a global oilfield-services technology company with four divisions and 109,000 employees. Scale, technology, and a worldwide service network give it some durable advantages, but oil-and-gas equipment and services are cyclical, as FairStock categorizes it. The numbers show why. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $9.0B and net income was $786.0M, or $0.52 diluted EPS. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $8.5B but net income was $1.0B and diluted EPS was $0.74. So sales rose while profit fell—an unfavorable mix or cost pressure. Full-year fiscal 2025 net income was $3.4B, down from $4.5B in fiscal 2024. The balance sheet is respectable: debt-to-equity is 0.47, Piotroski is 8/9, and free cash flow is $4.6B, a 6.3% FCF yield. But return on capital employed is only 6.17%, and Altman Z is 2.37, not a fortress. Valuation is the rub. At the 2026-10-13 close of $48.77, P/E is 23.79 and P/B is 2.78. The Graham Number is $28.47, implying price is 71.3% above that conservative reference. EV/EBITDA is 12.37. For a cyclical business with falling profits, that looks full. The dividend yields 2.31%, and beta is 0.77. I would want either better earnings visibility or a wider margin of safety before calling this a classic value opportunity.

In plain English: SLB is a large oilfield services company that helps energy companies drill, produce, and manage reservoirs around the world. It still earns billions in profit and produces solid cash, but profits have slipped recently even as sales grew only modestly. At the recent price of $48.77, the shares look expensive compared with a conservative estimate of value based on its earnings and book value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer