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.
Johnson Service Group's Sloan Ratio for the quarter that ended in Dec. 2025 was 0.03%.
As of Dec. 2025, Johnson Service Group has a Sloan Ratio of 0.03%, indicating the company is in the safe zone and there is no funny business with accruals.
Johnson Service Group (CHIX:JSGl) 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, Johnson Service Group has a Sloan Ratio of 0.03%, indicating the company is in the safe zone and there is no funny business with accruals.
Johnson Service Group Sloan Ratio % Related Terms
Johnson Service Group Sloan Ratio % Historical Data
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The historical data trend for Johnson Service Group'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.
CHIX:JSGL vs CTAS, CPRT, ULS: Sloan Ratio % Comparison
For the Specialty Business Services subindustry, Johnson Service Group'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.
Johnson Service Group Sloan Ratio % vs Business Services Industry
For the Business Services industry and Industrials sector, Johnson Service Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Johnson Service Group'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.
Johnson Service Group's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Johnson Service Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 14.6 (Jun. 2025 ) + 22.5 (Dec. 2025 ) = £37.1 Mil.
Johnson Service Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 58.1 (Jun. 2025 ) + 81.8 (Dec. 2025 ) = £139.9 Mil.
Johnson Service Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -56.5 (Jun. 2025 ) + -46.5 (Dec. 2025 ) = £-103.0 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.
Johnson Service Group (CHIX:JSGL) has a Sloan Ratio % of 0.03% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Johnson Service Group and its competitors.
Is Johnson Service Group's Sloan Ratio % too high?
Johnson Service Group's current Sloan Ratio % is 0.03%. Overall, Johnson Service Group has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Johnson Service Group's Sloan Ratio % compare to CTAS and CPRT?
Johnson Service Group's Sloan Ratio % of 0.03% can be compared against companies in the Business Services 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 Business Services company?
A good Sloan Ratio % depends on the Business Services 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 Johnson Service Group and its competitors. Johnson Service Group's current Sloan Ratio % is 0.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson Service Group stock overvalued right now?
Based on GuruFocus' analysis, Johnson Service Group (CHIX:JSGL) is currently considered Fairly Valued. The stock's GF Value™ is £1.68, compared to a current price of £1.68 — trading 0.1% above its estimated fair value. The current Sloan Ratio % is 0.03%. Johnson Service Group's overall GF Score™ is 86/100 with 7 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 Johnson Service Group (CHIX:JSGL), the current Sloan Ratio % is 0.03% 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 Johnson Service Group (CHIX:JSGL) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson Service Group stock appears to be overvalued.
The current stock price of £1.68 is trading 0.1% above its estimated GF Value™ of £1.68.
GuruFocus considers Johnson Service Group to be Fairly Valued.
Key valuation signals for CHIX:JSGL:
Sloan Ratio %: 0.03%
GF Value™: £1.68 vs. price of £1.68 (0.1% above fair value)
No single metric tells the full story. See the CHIX:JSGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson Service Group PLC United Kingdom-based company that provides textile-related services to businesses and consumers. It is a supplier of work wear and protective wear, offering these services through Johnsons Workwear brand. The company also provides premium linen services for the hotel, catering and hospitality markets, and high volume hotel linen services, through a number of different brands which include Johnsons Hotel Linen, Johnsons Hotel, Restaurant & Catering Linen, Johnsons Restaurant & Catering Linen and Regency. It has two reporting segments; Workwear, and Hotel, Restaurant and Catering which is also its key revenue generating segment.
86GF Score
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