Morningstar Rating

Stock Research and Analysis

by Stephen Simko, CFA

Bulls Say

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.
With more than half of its business outside of the U.S., Schlumberger is better insulated than peers from the weak U.S. market.
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 services 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 solid 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 

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