SLB SLB Ltd

SLB (formerly Schlumberger) is the world's largest oilfield services company, providing technology and services for oil and gas exploration and production. Sector: Energy.

SLB Ltd (SLB) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Assessing the quality of returns on invested capital, ROIC is 12.36%, WACC is 7.69%, and the economic spread is 4.67%. On balance, the economic spread is thin but positive — the company is clearing the hurdle, though without significant headroom. Supporting metrics show ROE at 14.44% and ROA at 6.67%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

The current pricing of the company reads trailing P/E of 20.95, forward P/E of 17.65, PEG of 4.25. The small spread between trailing and forward P/E suggests neither meaningful acceleration nor deterioration is currently priced into the earnings outlook. The PEG reading here is above the range most value-oriented investors would find comfortable — the valuation requires a high degree of confidence in forward earnings delivery. The current ratio of 1.33 is below average, suggesting some the company may face tighter short-term financial conditions. In aggregate, the valuation reads as fair to moderately stretched — leaving the investment case dependent on earnings execution rather than multiple expansion.

Looking at margins from gross to free cash flow, gross margin sits at 18.45%, operating margin at 15.52%, and free cash flow margin at 12.47%. The gross margin reading is low, suggesting the company operate in cost-intensive or highly competitive environments. At this level, operating margins reflect businesses that are scaling with discipline without dramatic cost pressure. The company's cash conversion is middle-of-the-road — sufficient for operational needs, but leaving limited surplus for discretionary allocation. Margins indicate a company that is operating effectively in some areas while still showing efficiency gaps in others.

Projected 12-month EPS growth of 18.7% adds a powerful forward signal — analyst consensus expects earnings to accelerate materially, which, if delivered, could make current multiples look increasingly modest. Turning to growth and analyst expectations, TTM revenue growth of 4.97% indicating muted but still positive top-line momentum across the company, while the estimated 12-month price change of 9.01%, where street expectations indicate a low-ceiling return setup in the near term. The distinction matters: revenue growth tells you what the company are doing, price targets tell you what analysts think the market will pay for it. Ultimately, the alignment between revenue momentum and analyst targets will depend on execution quality and the broader rate and sentiment environment. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The fundamental picture is not broken, but neither is it clearly compelling — a hold posture reflects the absence of an obvious catalyst for re-rating in either direction.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.