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Core Laboratories N.V. (CLB)
:CLB
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Core Laboratories
(NYSE:CLB)56Neutral
Core Laboratories (CLB) vs. S&P 500 (SPY)
Market Cap
$646.68M
Dividend Yield0.29%
Average Volume (3M)346.93K
Price to Earnings (P/E)20.6
Beta (1Y)0.98
Revenue Growth2.76%
EPS Growth-23.59%
CountryUS
Employees3,500
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.67
Shares Outstanding46,826,820
10 Day Avg. Volume346,181
30 Day Avg. Volume346,932
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.25
Price to Cash Flow (P/CF)7.90
P/FCF Ratio8.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside23.10% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Core Laboratories Business Overview & Revenue Model
Company DescriptionCore Laboratories (CLB) is a leading provider of proprietary and patented reservoir description, production enhancement, and reservoir management services for the oil and gas industry. The company operates in two main segments: Reservoir Description, which focuses on analyzing and understanding reservoir rock, fluid, and gas samples, and Production Enhancement, which centers on improving the extraction and recovery processes of hydrocarbons. Core Laboratories serves major, national, and independent oil companies worldwide, offering specialized services and products that are crucial for optimizing production and maximizing recovery from existing oil and gas fields.
How the Company Makes MoneyCore Laboratories generates revenue primarily through its two main business segments: Reservoir Description and Production Enhancement. The Reservoir Description segment provides laboratory-based services that analyze geological samples to assess reservoir characteristics, which helps clients optimize their exploration and production strategies. This segment earns revenue by offering specialized testing and analytical services that are critical for understanding the properties of oil and gas reservoirs. The Production Enhancement segment focuses on designing and implementing technologies that improve the efficiency and effectiveness of hydrocarbon extraction and recovery. This includes offering services and products that enhance well performance and increase oil and gas output. Core Laboratories also benefits from strategic partnerships and collaborations with major oil and gas companies, enabling it to leverage its expertise and technology to secure long-term contracts and projects, thus contributing to its revenue growth.
Core Laboratories Financial Statement Overview
Summary
Core Laboratories shows moderate financial health with strong revenue growth and a solid capital structure due to debt reduction. However, challenges in profitability and reliance on external financing pose risks.Income Statement
Core Laboratories shows modest revenue growth with a 2.76% increase from 2022 to 2023 and a 2.76% increase from 2023 to 2024. The gross profit margin is strong at 100% for 2024, reflecting efficient cost management. However, the net profit margin decreased from 7.19% in 2023 to 5.99% in 2024, indicating reduced profitability. EBIT and EBITDA margins have slightly decreased, suggesting some operational challenges.55
Neutral
Balance Sheet
The balance sheet reveals a significant improvement in debt management with total debt reduced to zero by 2024, enhancing financial stability. The equity ratio improved significantly to 116.28% in 2024 from 38.33% in 2023, indicating a favorable capital structure. However, the reduction in stockholders' equity from 2023 to 2024 suggests potential concerns regarding retained earnings or asset revaluation.65
Positive
Cash Flow
Core Laboratories' cash flow statement reflects strong free cash flow growth of 205.19% from 2023 to 2024, indicating effective capital expenditure management. The operating cash flow to net income ratio is robust, showing strong cash generation relative to net income. However, the reliance on financing activities, as seen from consistent negative financing cash flows, may indicate a need for external funding.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 523.85M | 509.79M | 489.74M | 470.25M | 487.27M | Gross Profit |
| 88.37M | 94.05M | 78.92M | 83.84M | 91.63M | EBIT |
| 58.56M | 54.64M | 41.52M | 45.26M | 55.77M | EBITDA |
| 73.51M | 70.42M | 58.69M | 63.78M | -56.50M | Net Income Common Stockholders |
| 31.40M | 36.67M | 19.45M | 19.73M | -97.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.16M | 15.12M | 15.43M | 17.70M | 13.81M | Total Assets |
| 590.41M | 586.39M | 578.35M | 580.85M | 568.58M | Total Debt |
| 180.14M | 215.38M | 222.39M | 250.26M | 326.98M | Net Debt |
| 160.99M | 200.26M | 206.96M | 232.56M | 313.17M | Total Liabilities |
| 332.67M | 356.59M | 389.40M | 419.85M | 493.01M | Stockholders Equity |
| 94.45M | 224.81M | 188.95M | 161.00M | 75.57M |
| Cash Flow | Free Cash Flow | |||
| 43.36M | 14.21M | 14.74M | 23.04M | 45.99M | Operating Cash Flow |
| 56.39M | 24.79M | 24.96M | 36.58M | 57.87M | Investing Cash Flow |
| -6.39M | -6.65M | -3.86M | -10.22M | 7.85M | Financing Cash Flow |
| -45.96M | -18.45M | -23.38M | -22.46M | -63.01M |
Core Laboratories Technical Analysis
Negative
13.81
Price Trends
17.46
Negative
18.55
Negative
19.04
Negative
Market Momentum
-1.01
Positive
26.21
Positive
6.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLB, the sentiment is Negative. The current price of 13.81 is below the 20-day moving average (MA) of 16.33, below the 50-day MA of 17.46, and below the 200-day MA of 19.04, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 26.21 is Positive, neither overbought nor oversold. The STOCH value of 6.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLB.
Core Laboratories Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $42.44B | 14.40 | 17.47% | 1.97% | 9.10% | 55.56% | |
77 Outperform | $11.35B | 14.10 | 27.24% | 0.71% | 16.23% | 1403.29% | |
75 Outperform | $21.71B | 8.83 | 23.81% | 2.72% | -0.32% | -3.41% | |
75 Outperform | $5.39B | 8.83 | 9.96% | 1.93% | 3.42% | -35.98% | |
72 Outperform | $54.15B | 12.82 | 26.64% | 2.79% | 9.58% | 6.53% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
56 Neutral | $646.68M | 20.63 | 33.25% | 0.29% | 2.76% | -23.59% |
* Energy Sector Average
Performance Comparison
CLB
Core Laboratories
13.81
-1.73
-11.13%
BKR
Baker Hughes Company
42.86
13.00
43.54%
FTI
TechnipFMC
26.98
5.55
25.90%
HAL
Halliburton
24.15
-10.63
-30.56%
NOV
NOV
14.16
-2.80
-16.51%
SLB
Schlumberger
39.08
-9.66
-19.82%
Core Laboratories Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -25.47% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with notable achievements in debt reduction and international sales growth, but also significant challenges in revenue decline and geopolitical disruptions. The company is optimistic about international growth despite these headwinds.Highlights
Full Year Revenue Growth
Full year 2024 revenue saw an increase of 3% compared to 2023.
Operating Income and EPS Growth
Operating income for full year 2024 was up 7% and earnings per share was up 9% compared to 2023.
Debt Reduction
Core's net debt was reduced by nearly $12 million in Q4, lowering the leverage ratio to 1.31, the lowest in eight years.
Share Repurchase
Core Lab repurchased nearly 265,000 shares of company stock during the fourth quarter.
Increase in International Product Sales
International product sales increased by 8% year-over-year.
Completion Diagnostic Services Demand Increase
Demand for completion diagnostics increased, with growth in the Gulf of Mexico and international markets.
Free Cash Flow Improvement
Free cash flow for full year 2024 was $43.4 million, a significant improvement from $14.2 million in 2023.
Lowlights
Sequential Revenue Decline
Fourth quarter revenue was down just under 4% compared to Q3 of 2024.
Reservoir Description Challenges
Revenue for Reservoir Description was down 2% sequentially due to geopolitical conflicts and sanctions impacting crude assay laboratory services.
Production Enhancement Segment Decline
Fourth quarter revenue for Production Enhancement was down 7% sequentially and flat for the full year compared to 2023.
US Onshore Activity Decline
Product sales in the US declined due to lower onshore completion activity.
Geopolitical and Weather-Related Disruptions
Expanded sanctions and severe weather conditions resulted in operational challenges and revenue loss in Q1 2025.
Company Guidance
During the Core Laboratories' Fourth Quarter 2024 Earnings Call, the company provided guidance for the upcoming fiscal year. Core projected a revenue range of $121 million to $127 million and operating income between $10.2 million and $12.8 million for the first quarter of 2025, with operating margins expected to be around 9%. The company anticipates an effective tax rate of approximately 25% for 2025, impacting the first quarter's income tax expense by about $500,000. Consequently, earnings per share (EPS) for the first quarter are forecasted to be between $0.12 and $0.16. Despite seasonal industry patterns and geopolitical risks affecting some regions, Core expects mid-single-digit growth year-over-year in international upstream projects.Core Laboratories Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Core Labs Reports Revenue Growth Amid Challenges
Positive
Jan 29, 2025
On January 29, 2025, Core Laboratories Inc. announced a quarterly cash dividend of $0.01 per share for Q1 2025. The company reported a slight increase in revenue and earnings for Q4 and full year 2024 despite challenges like reduced U.S. land activity and geopolitical tensions. Core Labs reduced its debt leverage ratio significantly, continued share repurchases, and maintained its focus on strategic priorities, including debt reduction and growth opportunities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.