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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Jun. 2026, Advanced Energy Industries has a Sloan Ratio of 3.94%, indicating the company is in the safe zone and there is no funny business with accruals.
Advanced Energy Industries (NAS:AEIS) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Advanced Energy Industries has a Sloan Ratio of 3.94%, indicating the company is in the safe zone and there is no funny business with accruals.
Advanced Energy Industries Sloan Ratio % Related Terms
Advanced Energy Industries Sloan Ratio % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electrical Equipment & Parts subindustry, Advanced Energy Industries's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Advanced Energy Industries Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Advanced Energy Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Advanced Energy Industries's Sloan Ratio % falls into.
Advanced Energy Industries Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Advanced Energy Industries's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 46.2 (Sep. 2025 ) + 52.3 (Dec. 2025 ) + 66.8 (Mar. 2026 ) + 54.1 (Jun. 2026 ) = $219 Mil.
Advanced Energy Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 78.7 (Sep. 2025 ) + 80.5 (Dec. 2025 ) + -6 (Mar. 2026 ) + 85 (Jun. 2026 ) = $238 Mil.
Advanced Energy Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -28.3 (Sep. 2025 ) + -37.9 (Dec. 2025 ) + -38 (Mar. 2026 ) + -49.5 (Jun. 2026 ) = $-154 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Advanced Energy Industries (AEIS) has a Sloan Ratio % of 3.94% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Advanced Energy Industries and its competitors.
Is Advanced Energy Industries' Sloan Ratio % too high?
Advanced Energy Industries' current Sloan Ratio % is 3.94%. Overall, Advanced Energy Industries has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Energy Industries' Sloan Ratio % compare to AYI and FPS?
Advanced Energy Industries' Sloan Ratio % of 3.94% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Industrial Products company?
A good Sloan Ratio % depends on the Industrial Products industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Advanced Energy Industries and its competitors. Advanced Energy Industries's current Sloan Ratio % is 3.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Energy Industries stock overvalued right now?
Based on GuruFocus' analysis, Advanced Energy Industries (AEIS) is currently considered Significantly Overvalued. The stock's GF Value™ is $147.30, compared to a current price of $324.80 — trading 120.5% above its estimated fair value. The current Sloan Ratio % is 3.94%. Advanced Energy Industries' overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Advanced Energy Industries (AEIS), the current Sloan Ratio % is 3.94% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advanced Energy Industries (AEIS) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Energy Industries stock appears to be overvalued.
The current stock price of $324.80 is trading 120.5% above its estimated GF Value™ of $147.30.
GuruFocus considers Advanced Energy Industries to be Significantly Overvalued.
Key valuation signals for AEIS:
Sloan Ratio %: 3.94%
GF Value™: $147.30 vs. price of $324.80 (120.5% above fair value)
No single metric tells the full story. See the AEIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Energy Industries Inc provides precision power conversion, measurement, and control solutions. The company designs, manufactures, sells, and services power electronics conversion products that transform raw electrical power into controllable, usable power for complex equipment. It operates in one reporting segment, Power Electronics Conversion Products, serving the Semiconductor Equipment, Data Center Computing, Industrial and Medical, and Telecom and Networking markets. Its products include Plasma Power Products, AC-DC Power Supply Units, DC-DC Converters, High Voltage solutions, SCR Power Controllers, and Sense and Measurement solutions. The company operates in the United States, Asia, Europe, and other regions.
78GF Score
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