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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.
Brother Industries's Sloan Ratio for the quarter that ended in Mar. 2026 was 0.11%.
As of Mar. 2026, Brother Industries has a Sloan Ratio of 0.11%, indicating the company is in the safe zone and there is no funny business with accruals.
Brother Industries (OTCPK:BRTHF) 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, Brother Industries has a Sloan Ratio of 0.11%, indicating the company is in the safe zone and there is no funny business with accruals.
Brother Industries Sloan Ratio % Related Terms
Brother Industries Sloan Ratio % Historical Data
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The historical data trend for Brother Industries'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.
Brother Industries Sloan Ratio % Competitor Comparison
For the Business Equipment & Supplies subindustry, Brother 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.
Brother Industries Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Brother Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Brother Industries'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.
Brother Industries's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
Brother Industries's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 81.193 (Jun. 2025 ) + 111.86 (Sep. 2025 ) + 151.692 (Dec. 2025 ) + 98.952 (Mar. 2026 ) = $444 Mil.
Brother Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 51.528 (Jun. 2025 ) + 177.705 (Sep. 2025 ) + 250.226 (Dec. 2025 ) + 241.148 (Mar. 2026 ) = $721 Mil.
Brother Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -84.619 (Jun. 2025 ) + -66.575 (Sep. 2025 ) + -54.722 (Dec. 2025 ) + -78.087 (Mar. 2026 ) = $-284 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.
Brother Industries (BRTHF) has a Sloan Ratio % of 0.11% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Brother Industries and its competitors.
Is Brother Industries' Sloan Ratio % too high?
Brother Industries' current Sloan Ratio % is 0.11%. Overall, Brother Industries has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Brother Industries' Sloan Ratio % compare to competitors?
Brother Industries' Sloan Ratio % of 0.11% 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 Brother Industries and its competitors. Brother Industries's current Sloan Ratio % is 0.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brother Industries stock overvalued right now?
Based on GuruFocus' analysis, Brother Industries (BRTHF) is currently considered Significantly Overvalued. The stock's GF Value™ is $18.62, compared to a current price of $29.64 — trading 59.2% above its estimated fair value. The current Sloan Ratio % is 0.11%. Brother Industries' overall GF Score™ is 71/100 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 Brother Industries (BRTHF), the current Sloan Ratio % is 0.11% 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 Brother Industries (BRTHF) Overvalued in 2026?
Based on GuruFocus' analysis, Brother Industries stock appears to be overvalued.
The current stock price of $29.64 is trading 59.2% above its estimated GF Value™ of $18.62.
GuruFocus considers Brother Industries to be Significantly Overvalued.
Key valuation signals for BRTHF:
Sloan Ratio %: 0.11%
GF Value™: $18.62 vs. price of $29.64 (59.2% above fair value)
No single metric tells the full story. See the BRTHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brother Industries Ltd is a Japan-based company mainly engaged in producing and selling office equipment, printing solutions, and related supplies. The company operates through seven segments. The Domino segment covers industrial printing equipment, while the Machinery segment handles machine tools, industrial sewing machines, and garment printers. The Network and Content segment involves karaoke equipment and IT systems, and the Nissei segment produces reducers and gears. The Others segment includes new construction and renovation of buildings, and investment in information systems. The Personal and Home segment makes household sewing machines, and Printing and Solutions focuses on telecommunications and printing equipment. It generates majority revenue from Printing & Solutions segment.
71GF Score
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