SLB
SLB N.V.$47.40
Unclear
Target $43.15
Report: Mar 13, 2026Energy • Oil & Gas Equipment & Services • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$47.40-9.0%
Rec: UnclearConviction: Medium
Entry Target
$33.19
(30% below current)
Fair Value
$43.15
(9% below current)
Stop Loss
$31.11
(34% below current)
Position Size
Starter
Time Horizon
Long-Term (3+ Years)
Key Metrics
Live Snapshot
Market Data
52 Week High$54.80
52 Week Low$31.11
Avg. 3 Month Volume20.84M
Efficiency
LTM Gross Margin18.2%
LTM EBITDA Margin20.8%
LTM EBIT Margin13.4%
LTM Operating Margin12.2%
LTM ROA6.5%
LTM ROE14.7%
LTM ROIC17.2%
LTM ROCE12.8%
Capital Structure
Market Cap (MM)$76.8B
Enterprise Value (MM)$85.4B
Shares Outstanding1.50B
Total Debt (MM)$11.64B
Cash & Equivalents (MM)$3.04B
LTM Net Debt (MM)$8.60B
LTM Net Debt/EBITDA1.2x
Growth
TTM Rev. Growth-1.6%
Last 3-Yr Rev. CAGR8.3%
Last 3-Yr EBITDA CAGR2.6%
Last 3-Yr EPS CAGR-0.7%
Valuation
Street Target Price$52.95
LTM EV/Revenue2.4x
LTM EV/Gross Profit13.1x
LTM EV/EBIT17.9x
LTM EV/EBITDA11.5x
LTM P/E22.8x
LTM EV/FCF20.8x
LTM P/FCF18.7x
LTM P/TB2.3x
LTM P/B2.9x
Dividend Yield2.2%
Payout Ratio48.1%
Executive SummarySituation: Current price is $47.4 versus fair value $43.15 (-9.0% expected return), and valuation confidence is stable. Debate: Bull case depends on ChampionX Synergy Realization Management targets $400M in annual pretax synergies. Bear case centers on Continued Margin Compression The primary risk is that pricing power in international markets does not materialize, leading to a permanent impairment of the company's return on capital. Conclusion: Recommendation is Unclear; maintain no position until reliability and catalyst evidence improve.
Bull Case
Digital ARR is scaling rapidly toward a $1B run rate with 35% EBITDA margins, providing a high-quality, recurring revenue stream. The ChampionX acquisition creates a dominant position in production chemicals, which are less cyclical than drilling services. Furthermore, a potential rapid ramp-up in Venezuela, where SLB maintains 1,000 employees and 2,000 ready-to-return alumni, represents a significant unpriced call option.
Bear Case
Operating margins have compressed significantly, falling from 16.0% in FY 2024 to 12.2% in FY 2025, indicating that pricing gains are not offsetting cost inflation. Persistent insider selling at prices above $50 suggests management sees the stock as fully valued. Additionally, ongoing legal exposure from a $232.7M penalty for sanctions violations and a $100M sexual harassment class-action lawsuit pose reputational and financial risks.
Key Catalysts
Mid-Term (6-18 months)Impact: High
ChampionX Synergy Realization Management targets $400M in annual pretax synergies. Successful execution would validate the 'Production Recov...
Near-Term (0-6 months)Impact: Moderate
Venezuela Operational Ramp-up A rapid increase in activity in Venezuela, contingent on licensing, could add over $1B in high-margin revenue.
Long-Term (18+ months)Impact: Moderate
SLB is at a critical juncture following the ChampionX integration and a significant margin reset in FY 2025. The current price sits near the...
Primary Risks
Concern: High
Continued Margin Compression The primary risk is that pricing power in international markets does not materialize, leading to a permanent im...
Concern: Medium
Geopolitical and Legal Fallout Persistent operations in Russia and prior sanctions violations could lead to further multi-hundred-million do...
Concern: Medium
The stewardship verdict is strong on capital discipline but adequate on alignment. The board is composed of energy industry titans, includin...
Recent Activity
2025-04-09Market Movement
+12.61%Market/Sector Move +12.61%
2025-04-03Market Movement
-7.06%Market/Sector Move -7.06%
2025-01-17SEC Filing (8-K)
+6.06%SLB announces Q4 and full-year 2024 results, increases dividend, initiates share repurchases
2024-01-30SEC Filing (SC 13G/A)
-7.24%State Street Corporation 5.96% beneficial ownership filing
2023-06-01SEC Filing (8-K)
+5.02%SLB CEO presents at Bernstein Strategic Decisions Conference
Valuation Table
9.8/10Decision Grade
Scenario Range
$34
Bear
$46
Base
$57
Bull
$47