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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.
EML Payments's Sloan Ratio for the quarter that ended in Jun. 2025 was -4.08%.
As of Jun. 2025, EML Payments has a Sloan Ratio of -4.08%, indicating the company is in the safe zone and there is no funny business with accruals.
EML Payments (ASX:EML) 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. 2025, EML Payments has a Sloan Ratio of -4.08%, indicating the company is in the safe zone and there is no funny business with accruals.
EML Payments Sloan Ratio % Related Terms
EML Payments Sloan Ratio % Historical Data
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The historical data trend for EML Payments's Sloan Ratio % can be seen below:
* 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.
ASX:EML vs MSFT, ORCL, PLTR: Sloan Ratio % Comparison
For the Software - Infrastructure subindustry, EML Payments'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.
EML Payments Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, EML Payments's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where EML Payments's Sloan Ratio % falls into.
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.
EML Payments'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.
EML Payments's Net Income for the trailing twelve months (TTM) ended in Jun. 2025 was 9.244 (Dec. 2024 ) + -62.631 (Jun. 2025 ) = A$-53.4 Mil.
EML Payments's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2025 was 4.593 (Dec. 2024 ) + 12.154 (Jun. 2025 ) = A$16.7 Mil.
EML Payments's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2025 was 41.368 (Dec. 2024 ) + -2.128 (Jun. 2025 ) = A$39.2 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.
EML Payments (ASX:EML) has a Sloan Ratio % of -4.08% as of Jun. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on EML Payments and its competitors.
Is EML Payments' Sloan Ratio % too high?
EML Payments' current Sloan Ratio % is -4.08%. Overall, EML Payments has a GF Score™ of 21/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does EML Payments' Sloan Ratio % compare to MSFT and ORCL?
EML Payments' Sloan Ratio % of -4.08% can be compared against companies in the Software 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 Software company?
A good Sloan Ratio % depends on the Software 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 EML Payments and its competitors. EML Payments's current Sloan Ratio % is -4.08%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EML Payments stock overvalued right now?
Based on GuruFocus' analysis, EML Payments (ASX:EML) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.80, compared to a current price of A$0.32 — trading 60.6% below its estimated fair value. The current Sloan Ratio % is -4.08%. EML Payments' overall GF Score™ is 21/100 with 5 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 EML Payments (ASX:EML), the current Sloan Ratio % is -4.08% as of Jun. 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 EML Payments (ASX:EML) Overvalued in 2026?
Based on GuruFocus' analysis, EML Payments stock appears to be undervalued.
The current stock price of A$0.32 is trading 60.6% below its estimated GF Value™ of A$0.80.
GuruFocus considers EML Payments to be Possible Value Trap.
Key valuation signals for ASX:EML:
Sloan Ratio %: -4.08%
GF Value™: A$0.80 vs. price of A$0.32 (60.6% below fair value)
No single metric tells the full story. See the ASX:EML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EML Payments is a financial technology company that operates across North America, Europe, and Australia. The firm builds the infrastructure for a customer to facilitate/accept payments via a prepaid card or in real-time. It makes money primarily via clipping a fee on payment transactions. It also earns fees from breakage, inactive accounts, cash establishments and interest on debit volumes. EML's payment solutions cater to a variety of applications including payouts, gifts, incentives, rewards, supplier payments, and more. The firm operates across three product offerings: gift and incentive cards, general purpose reloadable cards, and digital payments.
21GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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