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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, Chugai Pharmaceutical Co has a Sloan Ratio of 5.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Chugai Pharmaceutical Co (OTCPK:CHGCF) 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, Chugai Pharmaceutical Co has a Sloan Ratio of 5.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Chugai Pharmaceutical Co Sloan Ratio % Related Terms
Chugai Pharmaceutical Co 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 Drug Manufacturers - General subindustry, Chugai Pharmaceutical Co'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.
Chugai Pharmaceutical Co Sloan Ratio % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Chugai Pharmaceutical Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chugai Pharmaceutical Co's Sloan Ratio % falls into.
Chugai Pharmaceutical Co 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.
Chugai Pharmaceutical Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Chugai Pharmaceutical Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 752.136 (Sep. 2025 ) + 823.59 (Dec. 2025 ) + 727.351 (Mar. 2026 ) + 723.586 (Jun. 2026 ) = $3,027 Mil.
Chugai Pharmaceutical Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 480.776 (Sep. 2025 ) + 828.06 (Dec. 2025 ) + 769.082 (Mar. 2026 ) + 790.334 (Jun. 2026 ) = $2,868 Mil.
Chugai Pharmaceutical Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 635.183 (Sep. 2025 ) + -1037.257 (Dec. 2025 ) + 717.129 (Mar. 2026 ) + -932.046 (Jun. 2026 ) = $-617 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.
Chugai Pharmaceutical Co (CHGCF) has a Sloan Ratio % of 5.09% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Chugai Pharmaceutical Co and its competitors.
Is Chugai Pharmaceutical Co's Sloan Ratio % too high?
Chugai Pharmaceutical Co's current Sloan Ratio % is 5.09%. Overall, Chugai Pharmaceutical Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chugai Pharmaceutical Co's Sloan Ratio % compare to LLY and JNJ?
Chugai Pharmaceutical Co's Sloan Ratio % of 5.09% can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?
A good Sloan Ratio % depends on the Drug Manufacturers 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 Chugai Pharmaceutical Co and its competitors. Chugai Pharmaceutical Co's current Sloan Ratio % is 5.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chugai Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Chugai Pharmaceutical Co (CHGCF) is currently considered Fairly Valued. The stock's GF Value™ is $47.53, compared to a current price of $43.68 — trading 8.1% below its estimated fair value. The current Sloan Ratio % is 5.09%. Chugai Pharmaceutical Co's overall GF Score™ is 85/100 with 1 warning sign 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 Chugai Pharmaceutical Co (CHGCF), the current Sloan Ratio % is 5.09% 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 Chugai Pharmaceutical Co (CHGCF) Overvalued in 2026?
Based on GuruFocus' analysis, Chugai Pharmaceutical Co stock appears to be undervalued.
The current stock price of $43.68 is trading 8.1% below its estimated GF Value™ of $47.53.
GuruFocus considers Chugai Pharmaceutical Co to be Fairly Valued.
Key valuation signals for CHGCF:
Sloan Ratio %: 5.09%
GF Value™: $47.53 vs. price of $43.68 (8.1% below fair value)
No single metric tells the full story. See the CHGCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chugai Pharmaceutical is a Japanese drug developer and subsidiary of Roche Holding, which owns roughly 60% of the company. Founded in 1925, Chugai deals primarily in the Japanese market, where it generates roughly half of its revenue. It has been the leader in Japan's oncology market for the past decade, largely due to drugs licensed from its parent's portfolio. The company also develops its own innovative medicines. It is an industry leader in antibody technology with several flagship therapies, including Hemlibra (hemophilia), Actemra (rheumatoid arthritis, covid), Foundayo (oral obesity pill), and Nemluvio (atopic dermatitis, prurigo nodularis).
85GF Score
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