Schlumberger

Methodology

Schlumberger's oilfield services earnings are highly cyclical with drilling activity and oil prices, requiring normalization to mid-cycle activity levels. International and offshore exposure creates different cycle dynamics than North America. Use average earnings across industry cycles rather than peak or trough conditions to avoid misleading valuations.

Methodology

PEG analysis is challenging for Schlumberger given extreme earnings volatility from oil price-driven drilling cycles. During upcycles, low PEG ratios can be misleading as activity normalizes. Focus on returns on capital through the cycle and technology positioning rather than earnings growth for this oilfield services leader.

Methodology

Schlumberger offers a dividend that management aims to maintain through cycles, providing some yield during profitable periods. Dividend sustainability depends on commodity price levels and international activity. For oilfield services, free cash flow generation through cycles matters more than traditional yield metrics.