Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oilfield service giant Schlumberger
With that in mind, let's take a closer look at Schlumberger's business and see what CAPS investors are saying about the stock right now.
Schlumberger facts
| Headquarters (Founded) | Houston (1927) |
| Market Cap | $126.3 billion |
| Industry | Oil and gas equipment and services |
| Trailing-12-Month Revenue | $27.45 billion |
| Management |
Chairman/CEO Andrew Gould (since 2003) CFO Simon Ayat (since 2007) |
| Return on Equity (Average, Past 3 Years) | 22.8% |
| Cash/Debt | $4.99 billion / $8.12 billion |
| Dividend Yield | 1.1% |
| Competitors |
Baker Hughes
Halliburton
Weatherford International |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 2,818 members who have rated Schlumberger believe the stock will outperform the S&P 500 going forward. These bulls include All-Star TDRH, who is ranked in the top 0.1% of our community, and KnockoutMouse.
Just last month, TDRH tapped Schlumberger as a particularly sharp selection: "The smart bunch. Recent acquisition of Smith covers the domestic market. Key will be the price recovery for Natural Gas. Global presence."
In fact, Schlumberger boasts a robust three-year average operating margin of 19.9%. That's higher than that of rivals Baker Hughes (13.3%), Halliburton (17.3%), and Weatherford (12.5%).
CAPS member KnockoutMouse listed several of Schlumberger's positives:
1. A clear leader in an industry with high barriers to competition.
2. Well managed and efficient: with a high ROIC and profit margin.
3. Strong balance sheet, free cash flow adequate to fund its dividend, and well managed debt.
4. A history of substantial dividends and dividend growth.
5. Has performed well in the current macroeconomic environment (i.e. inflation, loose monetary policy, rapid BRIC growth, dollar/euro weakness) by equaling or beating the return on gold (20% annually) over the last few years.
Schlumberger is the leading company in wire-line logging and geophysical exploration, both key oil field services. Another great play on Peak Oil.
What do you think about Schlumberger, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
