Schlumberger N.V. (SLB) 10-K Red Flags
Risk signals extracted deterministically from Schlumberger N.V.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (12)
- Inventory buildup exceeds sales growth: Inventory grew -0.3% vs revenue -27.0%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
- Material weakness in internal controls: The term "material weakness" appears in 19 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 1.58x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Deferred revenue growing — future revenue visibility: Deferred revenue grew +168.0% to $1.09B, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
- Goodwill is 31% of total assets: Goodwill of $16.85B represents a large share of the balance sheet. If acquired businesses underperform, a non-cash impairment charge could materially impact earnings. Monitor segment performance and acquisition integration metrics.
- Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- Ongoing high-severity risk language: Material weakness in internal controls.
- Price $45.13 — downtrend (below 200-DMA); 1-month momentum negative.
- RSI(14) 8.67 (oversold).
- Inventory buildup exceeds sales growth: Inventory grew -0.3% vs revenue -27.0%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
- Material weakness in internal controls: The term "material weakness" appears in 19 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
Filings & ownership
- Latest annual report (10-K) filed Jan 23, 2026.
- Latest quarterly report (10-Q) filed Apr 29, 2026.
- 14 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 4 sell transactions — net selling $4.5M.
- ~282 recent 13F-HR filings reference Schlumberger N.V.; broad institutional reporting.
- Recent filers include Q3 Asset Management, ADAMS NATURAL RESOURCES FUND, INC. (PEO), ADAMS NATURAL RESOURCES FUND, INC. (PEO).
- 7 recent 13D activist/beneficial-ownership filings — potential catalyst.
- 13 recent 13G passive institutional ownership notices.
Full SLB analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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