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.
|Headquarters (Founded)||Houston (1927)|
|Market Cap||$126.3 billion|
|Industry||Oil and gas equipment and services|
|Trailing-12-Month Revenue||$27.45 billion|
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|
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.
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