Hi YXI friends,

From our latest valuation comparisons, I have identified SLB, OKE, and FANG as potential high-performing names. Today, we are going to review SLB first, a global technology company in the energy sector.

This article will explore SLB’s business model, financial performance, valuation, and price technicals, with an analysis on how we could trade it.

Let’s get started!

Table of Contents

• 1. A Global Technology Company In Energy

• 2. SLB Maintains Double Digit Growth In Q3

• 3. Profit Margins Are Also Improving

• 4. Valuation Is Attractive

• 5. Comparable valuations vs peers

• 6. Technical analysis

• 7. Rating: Overweight

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. A Global Technology Company In Energy

SLB provides hardware, software, and services to global energy companies. The business is categorised into four main areas: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems.

Digital & Integration offers digital products and services to oil and gas companies (e.g. AI / ML, Delfi™ Digital Platform) for data analytics and operations.

Reservoir Performance helps companies understand subsurface conditions and improve reservoir productivity through evaluation, well stimulation, and maintenance.

Well Construction provides products and services for drilling and constructing wells, such as drilling equipment, measuring tools, cementing, and fluids and mud logging.

Finally, Production Systems support the processing, transportation, and production of oil and gas, such as surface / subsea production systems and artificial lift.

Well Construction enjoys the largest revenue share, about 35% at $3.3 billion in quarterly revenue. Production Systems are closely behind, at a 33% share with $3.1 billion in quarterly revenue.

SLB’s biggest revenue sources come from Middle East and Asia, sharing 36% of the quarterly revenue. Europe & Africa is the second largest region, sharing 27% of the revenue.

North America and Latin America split the remaining pie equally.

2. SLB Maintains Double Digit Growth In Q3

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