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 Dec. 2025, African Rainbow Minerals has a Sloan Ratio of -1.83%, indicating the company is in the safe zone and there is no funny business with accruals.
African Rainbow Minerals (OTCPK:AFBOF) 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 Dec. 2025, African Rainbow Minerals has a Sloan Ratio of -1.83%, indicating the company is in the safe zone and there is no funny business with accruals.
African Rainbow Minerals Sloan Ratio % Related Terms
African Rainbow Minerals 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.
African Rainbow Minerals Sloan Ratio % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, African Rainbow Minerals'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.
African Rainbow Minerals Sloan Ratio % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, African Rainbow Minerals's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where African Rainbow Minerals's Sloan Ratio % falls into.
African Rainbow Minerals 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.
African Rainbow Minerals's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
African Rainbow Minerals's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was -59.709 (Jun. 2025 ) + 139.787 (Dec. 2025 ) = $80.1 Mil.
African Rainbow Minerals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 145.456 (Jun. 2025 ) + 186.779 (Dec. 2025 ) = $332.2 Mil.
African Rainbow Minerals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -85.242 (Jun. 2025 ) + -75.745 (Dec. 2025 ) = $-161.0 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.
African Rainbow Minerals (AFBOF) has a Sloan Ratio % of -1.83% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on African Rainbow Minerals and its competitors.
Is African Rainbow Minerals' Sloan Ratio % too high?
African Rainbow Minerals' current Sloan Ratio % is -1.83%. Overall, African Rainbow Minerals has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does African Rainbow Minerals' Sloan Ratio % compare to competitors?
African Rainbow Minerals' Sloan Ratio % of -1.83% can be compared against companies in the Metals & Mining 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 a Metals & Mining company?
A good Sloan Ratio % depends on the Metals & Mining 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 African Rainbow Minerals and its competitors. African Rainbow Minerals's current Sloan Ratio % is -1.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Rainbow Minerals stock overvalued right now?
Based on GuruFocus' analysis, African Rainbow Minerals (AFBOF) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.63, compared to a current price of $11.07 — trading 12.4% below its estimated fair value. The current Sloan Ratio % is -1.83%. African Rainbow Minerals' overall GF Score™ is 82/100 with 6 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 African Rainbow Minerals (AFBOF), the current Sloan Ratio % is -1.83% as of Dec. 2025. 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 African Rainbow Minerals (AFBOF) Overvalued in 2026?
Based on GuruFocus' analysis, African Rainbow Minerals stock appears to be undervalued.
The current stock price of $11.07 is trading 12.4% below its estimated GF Value™ of $12.63.
GuruFocus considers African Rainbow Minerals to be Modestly Undervalued.
Key valuation signals for AFBOF:
Sloan Ratio %: -1.83%
GF Value™: $12.63 vs. price of $11.07 (12.4% below fair value)
No single metric tells the full story. See the AFBOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
African Rainbow Minerals Ltd is a South African diversified mining and minerals company with operations in South Africa and Malaysia. The group operates through four main segments: ARM Platinum, which includes platinum group metals and nickel; ARM Ferrous, focused on iron ore, manganese ore, and chrome ore; ARM Coal, operating mainly in the Goedgevonden Mine; and ARM Corporate, which includes Machadodorp Works, gold investments, and other activities. The company produces manganese alloys and holds a strategic investment in gold. The company generates the majority of its revenue from South Africa and maintains a presence in Europe, the Americas, and the Far and Middle East.
82GF Score
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