Skip to Content

Core Laboratories Inc CLB

Morningstar Rating
$17.71 +0.09 (0.51%)
View Full Chart
Unlock Our Analysis with Morningstar Investor

Company Report

Core Laboratories Earnings: Contract Delays and Subdued U.S. Activity Weigh on Results

Wide-moat Core Laboratories delivered slightly weaker third-quarter results following a strong first half of 2023. Its production enhancement business was the main culprit, with segment revenue dropping 10% quarter over quarter as a result of lower-than-expected North American activity, exacerbated by a number of project delays from international clients that pushed product delivery to the fourth quarter. Despite these headwinds, Core maintained solid profitability, expanding the firmwide adjusted operating margin by more than 200 basis points to 13%. We don’t expect the operating environment will materially improve through year-end, and we’re lowering our fair value estimate slightly to $28 from $29 following results. At the time of writing, shares remain undervalued and trade at a more than 20% discount to our fair value estimate.

Price vs Fair Value

CLB is trading at a 37% discount.
Price
$17.71
Fair Value
$89.00
Uncertainty
Very High
1-Star Price
$78.00
5-Star Price
$91.00
Economic Moat
Srx
Capital Allocation
Yxwlfzgf

Bulls Say, Bears Say

Bulls

Expanded investment in more complex wells will drive demand for Core Labs’ proprietary technology over the next few years.

Bears

Core’s production enhancement segment relies heavily on the U.S. shale market, whose extremely competitive nature may pressure the segment’s profitability over time.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if CLB is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$17.62
Day Range
$17.6118.35
52-Week Range
$17.5127.95
Bid/Ask
$17.70 / $19.60
Market Cap
$826.43 Mil
Volume/Avg
1 / 310,059

Key Statistics

Price/Earnings (Normalized)
25.67
Price/Sales
1.66
Dividend Yield
0.23%
Dividend Yield (Forward)
0.23%
Total Yield
0.47%

Company Profile

Core Laboratories is the premier provider of reservoir description and production enhancement services for oil and gas exploration and production. It provides data and analytics to aid well operators in determining optimal methods for recovering, processing, and refining hydrocarbons from a well. It also manufactures the associated lab equipment for its services.
Sector
Energy
Industry
Oil & Gas Equipment & Services
Stock Style Box
Small Growth
Total Number of Employees
3,600

Competitors

Valuation

Metric
CLB
BKR
HAL
Price/Earnings (Normalized)
25.6722.9612.34
Price/Book Value
4.232.233.62
Price/Sales
1.661.391.47
Price/Cash Flow
15.5412.448.30
Price/Earnings
CLB
BKR
HAL

Financial Strength

Metric
CLB
BKR
HAL
Quick Ratio
1.470.771.32
Current Ratio
2.381.272.14
Interest Coverage
3.9211.5410.97
Quick Ratio
CLB
BKR
HAL

Profitability

Metric
CLB
BKR
HAL
Return on Assets (Normalized)
5.51%5.71%11.50%
Return on Equity (Normalized)
18.00%13.59%32.44%
Return on Invested Capital (Normalized)
9.57%10.04%17.17%
Return on Assets
CLB
BKR
HAL

Oil & Gas Equipment & Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
SLB
SLBKjxzd$74.3 Bil
BKR
Baker Hughes Co Class AHzkm$34.0 Bil
HAL
Halliburton CoGcnsjn$33.1 Bil
TS
Tenaris SA ADRJkww$20.3 Bil
FTI
TechnipFMC PLCNphpz$9.0 Bil
NOV
NOV IncRlg$7.4 Bil
WFRD
Weatherford International PLC Ordinary Shares - NewBhfgz$6.5 Bil
CHX
ChampionX CorpHbyb$5.7 Bil
LBRT
Liberty Energy Inc Class AMgcs$3.3 Bil
XPRO
Expro Group Holdings NVGndwf$1.7 Bil