How Does This Energy Service Operate?
SLB provides technology and services used in oil and gas exploration, drilling, and production. Its work spans the field lifecycle, supporting customers with tools, software, and operational services. The company operates at global scale across energy markets. Revenue is tied to delivering these services and technologies to energy producers and project operators.
Are Margins Holding Amid Slower Revenue?
FundamentalsFor 2025, reported in USD, SLB generated revenue of about USD 35.7 billion and net income of roughly USD 3.45 billion, alongside total debt of around USD 3.79 billion. Profitability over the trailing period shows a 12.65% operating margin and a 9.45% net profit margin, with ROE at 14.74%.
Capital intensity shows up in the flow of reinvestment: depreciation and amortization was about USD 2.64 billion in 2025, while capital spending was roughly USD 1.69 billion. Revenue declined 1.6% versus the prior year.
Is The Stock Fairly Priced Now?
DCF / MultiplesAt USD 52.20, the stock trades within the modeled fair-value range rather than at an extreme. The pricing also comes with a 23.11 trailing P/E and 12.09 EV/EBITDA, which frames the current quote as paying for sustained earnings power rather than a distressed setup.
Resilient But Not Carefree
TakeawayThe case leans on durable returns, not rapid top-line growth. Debt is manageable on paper, but it narrows room for missteps. Returns need to stay solid while reinvestment remains disciplined. If margins fade, leverage becomes more uncomfortable quickly. Overall, the setup looks resilient, but not carefree.