Schlumberger is
the world’s leading oilfield service company providing wireline, drilling and
measurement and well testing services, completion, artificial lift, data and
consulting services, land and marine seismic services and reservoir services. The company has grown profits at an 18% pace
over the past ten years; the dividend growth rate has been lower rate but
management has stated that it intends to increase it in the near term. In addition, the company has earned an
11-25%+ return of equity over the last ten years. The company should continue to grow at an
above average over the long term as a result of:
(1) its
financial strength and technological leadership positions it to benefit from
increased activity in oilfield services and simulation and completion services,
(2) exploration
and production activities are increasing internationally as well as in the Gulf
of Mexico ,
(3) its
Production Management unit is seeing sustained improvement.
Negatives:
(1) intense
competition causing pricing and margin pressures,
(2) commodity
price and currency fluctuations,
(3) geopolitical
risks,
(4) adverse
weather conditions can negatively impact demand.
Schlumberger is
rated A++ by Value Line, carries a debt to equity ratio of about 21%, and its
stock yields of approximately 1.6%.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
Chart
Note:
SLB stock made good initial progress off its
March 2009 low, quickly surpassing the downtrend off its July 2007 high (straight
red line) and the November 2008 trading high (green line). Long term the stock is in an uptrend (blue
lines). Intermediate term, it is in a
trading range (purple lines). The wiggly
red line is the 50 day moving average.
The Dividend Growth Portfolio owns a full position in SLB ,
while the Aggressive Growth Portfolio owns a 75% position. The upper boundary of its Buy
Value Range Sell
Half Range
1/13
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