Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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 Mar. 2026, Espey Manufacturing & Electronics has a Sloan Ratio of 2.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Espey Manufacturing & Electronics (AMEX:ESP) 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 Mar. 2026, Espey Manufacturing & Electronics has a Sloan Ratio of 2.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Espey Manufacturing & Electronics Sloan Ratio % Related Terms
Espey Manufacturing & Electronics 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.
Espey Manufacturing & Electronics Sloan Ratio % Chart
For the Electrical Equipment & Parts subindustry, Espey Manufacturing & Electronics'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.
Espey Manufacturing & Electronics Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Espey Manufacturing & Electronics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Espey Manufacturing & Electronics's Sloan Ratio % falls into.
Espey Manufacturing & Electronics 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.
Espey Manufacturing & Electronics's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 2.932 (Jun. 2025 ) + 2.17 (Sep. 2025 ) + 2.805 (Dec. 2025 ) + 2.865 (Mar. 2026 ) = $10.77 Mil.
Espey Manufacturing & Electronics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 2.772 (Jun. 2025 ) + 5.72 (Sep. 2025 ) + -2.811 (Dec. 2025 ) + 3.388 (Mar. 2026 ) = $9.07 Mil.
Espey Manufacturing & Electronics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 1.326 (Jun. 2025 ) + -0.243 (Sep. 2025 ) + -1.023 (Dec. 2025 ) + -0.283 (Mar. 2026 ) = $-0.22 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.
Espey Manufacturing & Electronics (ESP) has a Sloan Ratio % of 2.01% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Espey Manufacturing & Electronics and its competitors.
Is Espey Manufacturing & Electronics' Sloan Ratio % too high?
Espey Manufacturing & Electronics' current Sloan Ratio % is 2.01%. Overall, Espey Manufacturing & Electronics has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Espey Manufacturing & Electronics' Sloan Ratio % compare to SKYX and EAF?
Espey Manufacturing & Electronics' Sloan Ratio % of 2.01% 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 Espey Manufacturing & Electronics and its competitors. Espey Manufacturing & Electronics's current Sloan Ratio % is 2.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Espey Manufacturing & Electronics stock overvalued right now?
Based on GuruFocus' analysis, Espey Manufacturing & Electronics (ESP) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.44, compared to a current price of $61.38 — trading 115.8% above its estimated fair value. The current Sloan Ratio % is 2.01%. Espey Manufacturing & Electronics' overall GF Score™ is 76/100 with 2 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 Espey Manufacturing & Electronics (ESP), the current Sloan Ratio % is 2.01% as of Mar. 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 Espey Manufacturing & Electronics (ESP) Overvalued in 2026?
Based on GuruFocus' analysis, Espey Manufacturing & Electronics stock appears to be overvalued.
The current stock price of $61.38 is trading 115.8% above its estimated GF Value™ of $28.44.
GuruFocus considers Espey Manufacturing & Electronics to be Significantly Overvalued.
Key valuation signals for ESP:
Sloan Ratio %: 2.01%
GF Value™: $28.44 vs. price of $61.38 (115.8% above fair value)
No single metric tells the full story. See the ESP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Espey Manufacturing & Electronics Corp is a power electronics design and OEM manufacturing company delivering products for military and severe environment applications. Its products include power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, UPS systems, and antennas. The applications of these products include AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power. Espey services include design and development to specification, build to specifications provided by the customer, build to print, design services, design studies, environmental testing services, metal fabrication, painting services, and development of automatic testing equipment.
76GF Score
Get the complete analysis for ESP
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ESP has been successfully added to your 
