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SLB, Cashflow doubles
Current 36 Target 45 +23%
January 22 2022
1 minute read
Sales grew a strong 6%
Costs up slightly, profit up
Cashflow doubled, we expect close to a billion dollars a quarter
Balance sheet lower leverage with strong cashflow
Valuation, capital paid to almost double, a 23% higher target price
1 minute read
Sales grew a strong 6%
- Sales grew 6% in the fourth quarter to 6,225 million dollars vs our 6,256 million dollars forecast.
- This brings the quarterly average to 3% growth.
- We predict average growth of 4% in this next 12 months to bring sales to 7,276 million dollars in the fourth quarter of 2022.
Costs up slightly, profit up
- The cash cost ratio went from -80% to -81% profit from 562 to 611 million dollars in the fourth quarter.
- The average cost ratio is at -81% now.
- We use the same -81% cost ratio to predict a 810 million dollars profit in the fourth quarter of 2022.
Cashflow doubled, we expect close to a billion dollars a quarter
- Free cashflow went from 671 to 1,298 million dollars in the fourth quarter helped by positive working capital & with -634 million dollars investment Cashflow.
- Average quarterly Cashflow is at 749 million dollars now.
- We assume lower -447 million dollars investment spending which with higher sales gives a 931 million dollars Cashflow in the fourth quarter of 2022.
Balance sheet lower leverage with strong cashflow
- Cash increased 2,942 to 3,139 million dollars in the fourth quarter.
- Liabilities declined 27,373 to 26,225 million dollars so net cash improved -24,431 to -23,086 million dollars.
- With our forecast cashflow & a -843 million dollars equity payout -2,452 million dollars liabilities payment net cash will be -20,634 million dollars in 12 months time.
Valuation, capital paid to almost double, a 23% higher target price
- SLB capital paid from the last 12 quarters improved 4,694 to 4,791 million dollars in the fourth quarter with a -97 million dollars equity payout & will be 8,086 million dollars in12 months time.
- At the current market value of 51,000 million dollars based on our forecasts it’s at 1.24 X assets with a 12 years payback & a 1.7% yield.
- Our cashflow forecast is 3,295 million dollars which means an 15 X valuation. A 19 X valuation gives a 23% higher target price of 45 dollars.