Oil & Gas Field Services, NEC
Core Laboratories Inc. provides reservoir description and production enhancement services and products to the oil and gas industry in the United States, Canada, and internationally. It operates through Reservoir Description and Production Enhancement segments. The Reservoir Description segment includes the characterization of petroleum reservoir rock, reservoir fluid, and gas samples to enhance production and improve recovery of oil and gas from its clients' reservoirs. It offers laboratory-based analytical and field services to characterize properties of crude oil and oil delivered products; and proprietary and joint industry studies, as well as services that support carbon capture, utilization and storage, hydrogen storage, geothermal projects, and the evaluation and appraisal of mining activities. The Production Enhancement segment provides services and products relating to reservoir well completions, perforations, stimulations, and production. It offers integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions to improve the effectiveness of enhanced oil recovery projects. The company markets and sells its products through a combination of sales representatives, technical seminars, trade shows, and print advertising, as well as through distributors. The company was founded in 1936 and is based in Houston, Texas.
Discounted Cash Flow Valuation of Core Laboratories Inc.
Growth
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%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $22.07M | $28.68M | $36.49M | $45.41M | $55.25M | $65.69M | $76.27M | $86.44M | $95.57M | $103M | $108.2M | $1.082B |
DCF | $24.94M | $27.59M | $29.86M | $31.59M | $32.66M | $32.98M | $32.5M | $31.24M | $29.28M | $26.73M | $267.3M | |
Value | $566.7M |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|
Net Margin | 4.2% | 4% | 7.2% | 7.3% |
ROA | 7.8% | 7.2% | 9.3% | 9.6% |
ROE | 12% | 10% | 16% | 16% |
The average Net Margin over the past 5 years is +5.12%.
The trend of Net Margin over the past 5 years is +1.5%.
The average ROA over the past 5 years is +8.1%.
The trend of ROA over the past 5 years is +0.76%.
The average ROE over the past 5 years is +12.84%.
The trend of ROE over the past 5 years is +1.85%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2021 | 12-2022 | 12-2023 | TTM | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | - | 11.68 | 7.39 | ||||||
Debt Equity | - | 0.93 | 0.72 | 0.69 | ||||||
MIN | ||||||||||
Graham Stability | - | - | - | - |
The Debt/FCF trailing twelve month is 7.39.
The trend of Debt/FCF over the past 5 years is -.
Graham’s Stability measure stands at -.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2022 | Trend |
---|---|---|
Revenue | 4.1% | -0.048% |
Net Income | 89% | 90% |
Stockholders Equity | 22% | 4.3% |
FCF | -3.6% | 32% |
The Revenue CAGR over the past 5 years is -.
The trend of Revenue growth rate over the past 5 years is -0.05%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is +89.92%.
The Equity CAGR over the past 5 years is -.
The trend of Equity growth rate over the past 5 years is +4.26%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is +32.43%.