Value
5.6/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 4.6 |
| P/S | 8.7 |
| EV/EBITDA | 4.2 |
| Fwd P/E | 7.1 |
| PEG | 5.0 |
| Analyst target | 4.0 |
- ▸Forward P/E: 17.8x
- ▸PEG: 1.51
SLB · Why this verdict
Why SLB (SLB) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
VerdictHOLD
Overall score4.8/10
ConfidenceMEDIUM
MacroRISK_OFF
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.
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. | ↓Deteriorating |
| 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. | ↓Deteriorating |
| 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. | ↑Improving |
| 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. | ↓Deteriorating |
| 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.
↓DeterioratingCatalyst 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.
↓DeterioratingCatalyst 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.
↑ImprovingTechnical 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.
↓DeterioratingMomentum 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.
Per-dimension breakdown
Quality
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 4.3 |
| ROA | 4.1 |
| Gross margin | 0.0 |
| Op margin | 5.1 |
| Net margin | 4.3 |
| Current ratio | 5.3 |
| FCF quality | 6.8 |
| Moat | 5.0 |
| Piotroski F | 6.7 |
- ▸No competitive moat
Growth
1.9/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 3.8 |
| EPS growth | 0.0 |
Momentum
5.2/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 10.0 |
| OBV | 1.0 |
| MA position | 9.0 |
| Volume | 1.1 |
- ▸Volume distribution (falling OBV)
- ▸Above 200-day MA
Sentiment
6.3/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 5.0 |
| Analyst rating | 7.5 |
| Price target | 6.2 |
Insider
5.0/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.0 |
| notable moves | 5.0 |
- ▸Negligible insider selling — $1,888,750 (0.002% of mkt cap)
Peer rank
5.0/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 4.0 |
| quality rank | 6.6 |
| growth rank | 3.9 |
Technical
4.5/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 1.8 |
| support resistance | 2.7 |
| 52w position | 9.1 |
Risk (lower is worse)
6.8/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 7.9 |
| days to cover | 6.0 |
| volatility | 4.1 |
| put call | 6.8 |
| implied vol | 6.1 |
| beta | 8.5 |
| debt equity | 8.1 |
- ▸Concentration risks: 1 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
6.3/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 4.5 |
| dividend safety | 5.2 |
| news activity | 8.0 |
- ▸Perfect beat streak: 4Q
How the verdict was assembled
Engine trigger
Mixed signals. Hold existing position.
Engine technical detail
verdict_path:
L4:PATH_F_HOLD_DEFAULTPassed (7)
- MOMENTUM:5.2>=4.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:49d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:-0.2=NEGATIVE
Warning (1)
- MOMENTUM:5.2<5.5 (soft — BUY_NOW allowed but watch)
Reward-to-Risk
-0.24
Upside
-2.9%
Downside
12.3%
Sizing output
AVOID
SetupBreakout — Golden cross, above all MAs, RSI 64, MACD bullish
EdgeNo clear edge — No clear edge identified
SuitabilityModerate — Balanced profile
Investment implication
The default F-path HOLD fired without any positive-conviction gate triggering — no momentum acceleration, no quality+value crossover, no setup recognition. Highest-clear gate: MOMENTUM:5.2>=4.5. Top dim: Risk (lower is worse) at 6.8; weakest: Growth at 1.9. The engine's read is one of pattern absence — no directional conviction in either direction at current asymmetry.
The strongest dimensions are Risk (lower is worse) at 6.8, Sentiment at 6.3, and Catalyst at 6.3; the weakest are Growth at 1.9, Technical at 4.5, and Quality at 4.6. The V9 engine flagged 1 failed gate with 1 warning, producing an asymmetric reward-to-risk of -0.24 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.