Morningstar Rating

Stock Research and Analysis

by Jason Stevens

Bulls Say

Oil demand has remained steady, but oil has become increasingly more expensive to extract from the ground, which benefits oil-services firms over time.
Schlumberger's market-leading position and wide moat provide some downside protection in a falling market; we expect greater revenue and margin resilience than peers.
Schlumberger's aggressive spending on R&D, combined with opportunistic acquisitions, extends the breadth of its product portfolio and allows the firm to increase market share and profitability. Read more 

Bears Say

Schlumberger's stock price is highly correlated with oil prices, and the current supply-demand imbalances in the global oil market could very plausibly push near-term prices down further.
An oversupply of pressure pumping capacity in North America has weighed on Schlumberger's margins. Without a dramatic rise in the oil or gas rig count, weak pricing conditions could persist.
Schlumberger is active in the Russian energy markets, which are being affected by U.S. and E.U. sanctions related to exports of oil exploration technology. Read more 

Management

Schlumberger's management team has shown good judgment in making acquisitions, managing debt, investing capital, and returning cash to shareholders. In our view, managers are standard stewards of shareholder capital.
The firm generates a considerable   Read more 

Profile

Schlumberger N.V. is the largest oil-service company in the world. The firm works with international, state-owned, and independent oil companies to improve reservoir characterization,  Read more 

Oil's Slide Is Causing Slick Investing Conditions 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.