📊 SLB Key Takeaways
Is Slb Limited/N.V. (SLB) a Good Investment?
SLB exhibits a deteriorating operational foundation with declining revenue (-1.6% YoY) and EPS (-24.4% YoY) despite flat net income, indicating structural headwinds in the oil & gas services sector. While the balance sheet remains fortress-like with healthy leverage (0.37x D/E) and strong interest coverage, abysmal capital efficiency metrics (ROE 2.9%, ROA 1.4%) and anemic free cash flow margins (1.7%) signal the company is not generating adequate shareholder value from its substantial $54.5B asset base.
SLB shows solid underlying fundamentals with double-digit operating profitability, strong free cash flow generation, and a conservatively levered balance sheet. Financial health appears sound, supported by adequate liquidity and manageable interest coverage, but the modest revenue decline and flat net income indicate growth has slowed and execution will need to improve for the next leg of earnings expansion.
Slb Limited/N.V. Key Strengths (SLB)
- Fortress balance sheet with 0.37x Debt/Equity ratio and $2.8B cash position
- Strong interest coverage (8.2x) provides significant financial distress margin
- Operating margin of 11% remains respectable despite cyclical industry headwinds
- Positive operating cash flow ($487M) demonstrates underlying business can generate cash
- Strong free cash flow generation with a 13.4% FCF margin supports reinvestment, debt service, and shareholder returns
- Balance sheet leverage is moderate, with debt/equity of 0.37x and interest coverage of 7.7x
- Profitability remains healthy for a cyclical services business, with 12.0% operating margin and positive returns on equity and assets
SLB Stock Risks: Slb Limited/N.V. Investment Risks
- Revenue declining YoY with EPS collapsing 24.4%, indicating demand erosion outpacing cost controls
- Critically low ROE (2.9%) and ROA (1.4%) reveal severe capital allocation inefficiency across massive asset base
- Free cash flow margin of 1.7% is unsustainably thin and insufficient for dividend coverage or growth investment
- Quick ratio at 0.98x signals potential near-term liquidity stress despite adequate current ratio
- Structural sector decline from energy transition threatens long-term cash generation sustainability
- Revenue declined 1.6% year over year, suggesting softer demand or pricing pressure
- Net income was flat while diluted EPS fell 24.4%, indicating weaker per-share earnings quality
- Liquidity is adequate but not abundant, with a 0.98x quick ratio leaving less cushion if working capital tightens
Key Metrics to Watch
- Free cash flow trajectory and FCF margin trend—critical given 1.7% is dangerously low
- Revenue growth stabilization—continuing 1.6% declines will accelerate deterioration
- Return on Equity—2.9% ROE below cost of capital indicates value destruction at current scale
- Debt reduction vs. maintained leverage—balance sheet strength only sustainable if operations improve
- Revenue growth and operating margin trend
- Free cash flow conversion and diluted EPS trend
Slb Limited/N.V. (SLB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.7% FCF margin may limit capital allocation flexibility.
SLB Profit Margin, ROE & Profitability Analysis
SLB vs Energy Sector: How Slb Limited/N.V. Compares
How Slb Limited/N.V. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Slb Limited/N.V. Stock Overvalued? SLB Valuation Analysis 2026
Based on fundamental analysis, Slb Limited/N.V. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Slb Limited/N.V. Balance Sheet: SLB Debt, Cash & Liquidity
SLB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Slb Limited/N.V.'s revenue has grown significantly by 10% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.91 reflects profitable operations.
SLB Revenue Growth, EPS Growth & YoY Performance
SLB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $8.5B | $752.0M | $0.50 |
| Q3 2025 | $8.9B | $739.0M | $0.50 |
| Q2 2025 | $8.5B | $1.0B | $0.74 |
| Q1 2025 | $8.5B | $797.0M | $0.58 |
| Q3 2024 | $8.3B | $1.1B | $0.78 |
| Q2 2024 | $8.1B | $1.0B | $0.72 |
| Q1 2024 | $7.7B | $934.0M | $0.65 |
| Q3 2023 | $7.5B | $907.0M | $0.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Slb Limited/N.V. Dividends, Buybacks & Capital Allocation
SLB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Slb Limited/N.V. (CIK: 0000087347)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SLB
What is the AI rating for SLB?
Slb Limited/N.V. (SLB) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are SLB's key strengths?
Claude: Fortress balance sheet with 0.37x Debt/Equity ratio and $2.8B cash position. Strong interest coverage (8.2x) provides significant financial distress margin. ChatGPT: Strong free cash flow generation with a 13.4% FCF margin supports reinvestment, debt service, and shareholder returns. Balance sheet leverage is moderate, with debt/equity of 0.37x and interest coverage of 7.7x.
What are the risks of investing in SLB?
Claude: Revenue declining YoY with EPS collapsing 24.4%, indicating demand erosion outpacing cost controls. Critically low ROE (2.9%) and ROA (1.4%) reveal severe capital allocation inefficiency across massive asset base. ChatGPT: Revenue declined 1.6% year over year, suggesting softer demand or pricing pressure. Net income was flat while diluted EPS fell 24.4%, indicating weaker per-share earnings quality.
What is SLB's revenue and growth?
Slb Limited/N.V. reported revenue of $8.7B.
Does SLB pay dividends?
Slb Limited/N.V. pays dividends, with $426.0M distributed to shareholders in the trailing twelve months.
Where can I find SLB SEC filings?
Official SEC filings for Slb Limited/N.V. (CIK: 0000087347) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SLB's EPS?
Slb Limited/N.V. has a diluted EPS of $0.50.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SLB's fundamental grade?
Based on our AI fundamental analysis in June 2026, Slb Limited/N.V. has a A grade with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SLB stock overvalued or undervalued?
Valuation metrics for SLB: ROE of 2.9% (sector avg: 14%), net margin of 8.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SLB's AI grade for 2026?
Our dual AI analysis gives Slb Limited/N.V. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SLB's free cash flow?
Slb Limited/N.V.'s operating cash flow is $487.0M, with capital expenditures of $343.0M. FCF margin is 1.7%.
How does SLB compare to other Energy stocks?
Vs Energy sector averages: Net margin 8.6% (avg: 12%), ROE 2.9% (avg: 14%), current ratio 1.34 (avg: 1.3).