Schlumberger Stock Price Forecast: SLB at $34.49 With $76 Fair Value and $8B ChampionX Catalyst

NYSE:SLB Trades at $34.49 With Deep Discount to Fair Value

Schlumberger Limited (NYSE:SLB) closed at $34.49, up 1.68% on the session, but far below its 52-week peak of $46.16. With a market capitalization of $51.5 billion and a forward P/E ratio of 10.34, SLB trades at a steep discount compared with its five-year average valuation multiple above 20x. Analysts’ consensus target of $46.57 implies upside of over 35%, while some DCF models suggest intrinsic value could reach $76 per share, or nearly 120% above current levels.

Earnings Pressure Meets Sequential Stability

Q2 2025 revenue came in at $8.55 billion, down 6% year-over-year but ahead of expectations by $50 million. Net income reached $1.02 billion, translating to EPS of $0.74, modestly beating consensus by $0.01. Quarterly earnings have sequentially stabilized, with Production Systems revenue growing 3% to $3 billion, offsetting slight declines in Digital & Integration. Analysts forecast full-year 2025 EPS at $2.90, with growth to $3.07 in 2026, projecting a return to expansion as offshore and international activity picks up.

Balance Sheet Strength and Cash Generation

SLB holds $3.75 billion in cash against $13.7 billion in debt, with a debt-to-equity ratio of 63.6%. Operating cash flow over the trailing 12 months reached $6.64 billion, with levered free cash flow of $3.01 billion. The balance sheet supports both capital returns and acquisition-driven expansion, with a current ratio of 1.32 and an ‘A’ credit rating. The dividend yield stands at 3.36%, based on an annual payout of $1.14 per share, comfortably covered by earnings with a payout ratio below 40%.

ChampionX Acquisition and Offshore Pipeline

The completion of the $8 billion ChampionX acquisition is expected to generate $400 million in annual pre-tax synergies by 2026, strengthening SLB’s chemicals and artificial lift portfolio. The company is also executing offshore contracts in Brazil, Suriname, and Guyana, while its OneSubsea division secured a major EPC contract with Equinor’s Fram Sør project. Beyond hydrocarbons, SLB has secured a role in the Northern Endurance Partnership carbon storage facility, slated to begin operations in 2028, positioning itself within energy transition infrastructure.

Geopolitical Risks and Exposure to Mexico and Russia

Receivables from Mexico’s PEMEX remain a concern, totaling $773 million as of Q2 but potentially extending to $1.8 billion when including credit default swaps SLB issued to support repayment. Russian exposure has been cut but still represents $600 million in net assets and roughly 4% of annual revenue, leaving SLB vulnerable to potential write-offs if sanctions intensify. The last major sanctions breach in 2015 cost the company $232.7 million in fines, underscoring the financial risk tied to geopolitics.

Valuation Gap vs. Peers and Long-Term Outlook

Compared with peers Halliburton (HAL, P/E 12.3) and Baker Hughes (BKR, P/E 13.7), SLB remains undervalued at 10x forward earnings and just 2.5x book value. Its return on equity of 19.2% and profit margin of 11.5% highlight operational efficiency. Historical P/E averages above 20x suggest significant rerating potential as oil demand grows; the IEA forecasts global demand to reach 104.4 mb/d by 2026. With a five-year return of 130%, SLB has outpaced the S&P 500’s 106%, despite underperforming year-to-date. 

Insider and Institutional Positioning

Institutional ownership remains heavy at 79.4%, while insider ownership is just 0.19%. Insider activity can be tracked through the SLB insider transactions portal. Short interest sits at 2.56% of shares outstanding, reflecting modest bearish bets but no signs of major pressure. The float of 1.35 billion shares ensures ample liquidity, with daily trading volumes exceeding 19 million shares, well above the three-month average.

Final Verdict: Buy Rating With Target Upside Above 100%

At $34.49, SLB trades at a deep discount to its intrinsic value models, its historical multiples, and its peer group. With international offshore contracts, ChampionX synergies, and a 3.3% dividend yield underpinned by strong free cash flow, the setup favors a Buy stance. Risks tied to PEMEX exposure and Russian operations are meaningful, but they appear priced into the stock at current levels. On balance, the fair value range stretches from $46 (consensus target) to $76 (DCF-derived fair value), presenting a compelling risk-reward case for accumulation.

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