Schlumberger (SLB): giant of global oilfield services

2026-06-23 · By Lubin Danilo, founder of Lubin Investment

SLB (formerly Schlumberger) is the world's leading oilfield services company, operating in 120 countries. Our screener awards it a perfect score, but at $47.95 the current price is 16.6% above our entry target of $40.18 — we're watching for a better entry point.

SLB: 100 years of oilfield services history

SLB (formerly Schlumberger) was founded in 1926 by brothers Conrad and Marcel Schlumberger. With over 99,000 employees in 120 countries, it is the world's largest oilfield services company by far. In 2022, the company officially adopted the SLB name to reflect its digital transformation. Its services cover directional drilling, logging, stimulation (fracturing), production, and digital solutions.

Screener fundamentals as of June 23, 2026

SLB earns a perfect score in our screener. The valuation multiple is 16.8x free cash flow. However, at $47.95 the current price is 16.6% above our entry target of $40.18. FCF per share is $2.85. Our target applies a conservative 7x multiple to FCF per share — justified in a cyclical sector.

Why SLB earns a perfect score despite cyclicality

• Geographic diversification: 120 countries reduces single-market dependency
• Proprietary technology mix: simulation software, subsea sensors, differentiating logging tools
• Digital transformation: SLB Digital division, AWS/Microsoft partnerships, growing software margins
• Through-cycle profitability: lean fixed cost structure maintained in down cycles
• Consistent dividend even in low oil price periods

When to consider buying SLB?

Our method is disciplined on entry price. With a target of $40.18, we'd wait for either a price correction (oil downturn, negative sector sentiment) or FCF per share growth that raises our target. In the oil sector, entry opportunities historically arise every 3-5 years at cycle troughs.

FAQ

Why did Schlumberger rebrand to SLB?

In 2022, Schlumberger adopted the SLB name to reflect its transformation beyond oil — digital services, clean energy, carbon capture technologies. The NYSE ticker remains SLB.

Is SLB stronger than competitors HAL and BKR?

SLB is the undisputed leader with the largest global market share. HAL (Halliburton) is stronger in North American stimulation. BKR (Baker Hughes) leads in LNG equipment. SLB has the best long-term FCF margins.

How does oil price affect SLB?

When Brent exceeds $70, oil companies increase E&P budgets and SLB benefits directly. Below $60, budgets contract. SLB has proven resilience at $50/barrel through its variable cost model.

Does SLB pay dividends?

Yes, SLB pays a regular quarterly dividend with a yield typically between 1.5% and 3%. Management has a track record of maintaining the dividend even through oil price downturns.

At what price would you consider buying SLB?

Our entry target is $40.18 based on FCF per share × 7x at current FCF levels. This target evolves with FCF growth. A price correction or FCF improvement would bring SLB into our buy zone.

Voir l'analyse SLB sur Lubin Investment

About the author

Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I have analyzed stocks through their fundamentals for several years and invest my own money with this method. I codified it into a tool that judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).