Value
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 6.5 |
| P/S | 9.1 |
| EV/EBITDA | 5.7 |
| Fwd P/E | 8.5 |
| PEG | 4.9 |
| Analyst target | 7.5 |
- ▸Forward P/E: 13.6x
- ▸PEG: 1.55
- ▸Attractively valued
SLB · Why this verdict
Why SLB (SLB) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score5.1/10
ConfidenceMEDIUM
MacroNEUTRAL
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
SLB has beaten analyst earnings estimates in all 4 of the last 4 quarters, with an average positive surprise of 2.9%, demonstrating consistent operational discipline and management's ability to reliably meet or exceed expectations in a capital-intensive services environment. Catalyst breakdown | The earnings beat streak extends to at least 6 consecutive quarters, maintaining an average surprise of at least 2% over the next 12 months. | →Stable |
| CounterAverage surprises of only 2.9% suggest very tight guidance management rather than genuine outperformance, and any oil services demand slowdown could quickly break the streak. | ||
The dividend coverage ratio of 220% suggests the dividend is well-covered by earnings, providing a yield-based floor for income-oriented investors even if price appreciation is limited at current levels. Catalyst breakdown | Dividend coverage remains above 150% and the absolute dividend payment is maintained or increased over the next 12 months. | →Stable |
| CounterA coverage ratio of 220% against a backdrop of flat earnings growth and weak revenue may narrow quickly if a single quarter misses; oil services dividends historically have been cut in down-cycles. | ||
SLB scores 9.6 on support and resistance technicals and 8.5 overall on the technical dimension, with price sitting on a well-established support zone, suggesting the market structure favors a near-term bounce if demand fundamentals stabilize. Technical breakdown | Price holds above the $51.91 support level and advances toward the $56.12 analyst target, reaching at least $55 within 12 months. | →Stable |
| CounterSupport levels break when the fundamental backdrop deteriorates; if oil services demand weakens due to a decline in exploration capital spending, support zones become resistance on the way down. | ||
Revenue growth is weak and earnings growth is essentially flat, while on-balance volume is declining and price momentum scores only 3.4 out of 10, indicating the market does not currently believe in a near-term earnings acceleration for SLB. Momentum breakdown | Revenue growth recovers to exceed 5% year-over-year and momentum score rises above 5.0 within 12 months. | →Stable |
| CounterOil services companies are cyclically driven by upstream capital expenditure budgets; even without organic growth, stable maintenance revenues and the 2.93% average earnings beat can sustain the current valuation. | ||
SLB has beaten analyst earnings estimates in all 4 of the last 4 quarters, with an average positive surprise of 2.9%, demonstrating consistent operational discipline and management's ability to reliably meet or exceed expectations in a capital-intensive services environment.
→StableCatalyst breakdown
- Expectation
- The earnings beat streak extends to at least 6 consecutive quarters, maintaining an average surprise of at least 2% over the next 12 months.
CounterAverage surprises of only 2.9% suggest very tight guidance management rather than genuine outperformance, and any oil services demand slowdown could quickly break the streak.
The dividend coverage ratio of 220% suggests the dividend is well-covered by earnings, providing a yield-based floor for income-oriented investors even if price appreciation is limited at current levels.
→StableCatalyst breakdown
- Expectation
- Dividend coverage remains above 150% and the absolute dividend payment is maintained or increased over the next 12 months.
CounterA coverage ratio of 220% against a backdrop of flat earnings growth and weak revenue may narrow quickly if a single quarter misses; oil services dividends historically have been cut in down-cycles.
SLB scores 9.6 on support and resistance technicals and 8.5 overall on the technical dimension, with price sitting on a well-established support zone, suggesting the market structure favors a near-term bounce if demand fundamentals stabilize.
→StableTechnical breakdown
- Expectation
- Price holds above the $51.91 support level and advances toward the $56.12 analyst target, reaching at least $55 within 12 months.
CounterSupport levels break when the fundamental backdrop deteriorates; if oil services demand weakens due to a decline in exploration capital spending, support zones become resistance on the way down.
Revenue growth is weak and earnings growth is essentially flat, while on-balance volume is declining and price momentum scores only 3.4 out of 10, indicating the market does not currently believe in a near-term earnings acceleration for SLB.
→StableMomentum breakdown
- Expectation
- Revenue growth recovers to exceed 5% year-over-year and momentum score rises above 5.0 within 12 months.
CounterOil services companies are cyclically driven by upstream capital expenditure budgets; even without organic growth, stable maintenance revenues and the 2.93% average earnings beat can sustain the current valuation.
TrendMatrix Research · core thesis
Engine thesis — one sentence
SLB has delivered 4 consecutive earnings beats and maintains strong technical support well above its 200-day moving average, but slowing revenue growth, negative price momentum, and thin 4.5% upside headroom leave limited near-term return potential.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Per-dimension breakdown
Quality
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 4.7 |
| ROA | 4.3 |
| Gross margin | 0.0 |
| Op margin | 4.9 |
| Net margin | 4.6 |
| Current ratio | 5.0 |
| FCF quality | 6.6 |
| Moat | 5.0 |
| Piotroski F | 6.7 |
- ▸No competitive moat
Growth
1.6/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 3.2 |
| EPS growth | 0.0 |
Momentum
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 9.2 |
| MACD | 0.0 |
| OBV | 10.0 |
| MA position | 4.0 |
| Volume | 0.0 |
- ▸Oversold in uptrend (RSI 13)
- ▸Volume accumulation (rising OBV)
- ▸Above 200-day MA
Sentiment
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 4.6 |
| Analyst rating | 7.5 |
| Price target | 8.9 |
- ▸Analyst upside: 35%
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.1 |
- ▸Insider selling (low materiality) — $5,944,176 (0.009% of mkt cap)
Peer rank
4.0/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 5.5 |
| quality rank | 6.8 |
| growth rank | 3.9 |
Technical
7.4/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 7.5 |
| support resistance | 9.0 |
| 52w position | 5.7 |
Risk (lower is worse)
6.5/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 8.0 |
| days to cover | 6.8 |
| volatility | 4.0 |
| put call | 4.9 |
| implied vol | 5.4 |
| beta | 8.6 |
| debt equity | 8.3 |
| news risk | 6.0 |
- ▸Concentration risks: 1 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
6.4/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 4.0 |
| dividend safety | 6.5 |
| news activity | 8.0 |
- ▸Perfect beat streak: 4Q
- ▸Dividend: 261.0%
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (7)
- MOMENTUM:4.6>=4.5
- ASYMMETRY:3.1>=1.5
- INSIDER:OK
- 8K:CLEAN
- EARNINGS_PROXIMITY:18d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (0)
none
Warning (1)
- MOMENTUM:4.6<5.5 (soft — BUY_NOW allowed but watch)
Reward-to-Risk
3.10
Upside
+21.2%
Downside
6.8%
Sizing output
AVOID
Setup— — No clear chart pattern; technical signals are mixed
EdgeCatalyst-Driven — Earnings in 18d with 4/4 beat streak
SuitabilityModerate — Balanced profile
Investment implication
The F-path SELL output reflects an overall score of 5.1 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Technical at 7.4) was not enough to lift the adjusted overall above the threshold. Current asymmetry R:R is 3.10 — supplementary context, not the trigger for this path.
The strongest dimensions are Technical at 7.4, Value at 7.0, and Sentiment at 7.0; the weakest are Growth at 1.6, Peer rank at 4.0, and Momentum at 4.6. The V9 engine cleared all gates with 1 warning, producing an asymmetric reward-to-risk of 3.10 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Perfect Four Quarter Beat Streak
Trip ifEPS surprise falls below 0% in at least 2 of the next 4 quarters.
- P2Technical Support Strong
Trip ifStock price drops below $51.91, breaking the identified support level.
- P3Weak Growth Negative Momentum
Trip ifRevenue growth remains below 2% for more than 2 consecutive reported quarters.
- P4Dividend Sustainability Yield
Trip ifDividend coverage ratio falls below 120%, indicating payout is at risk.