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, Cumberland Pharmaceuticals has a Sloan Ratio of -7.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Cumberland Pharmaceuticals (NAS:CPIX) 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, Cumberland Pharmaceuticals has a Sloan Ratio of -7.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Cumberland Pharmaceuticals Sloan Ratio % Related Terms
Cumberland Pharmaceuticals 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.
CPIX vs INCR, CTOR, TLPH: Sloan Ratio % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Cumberland Pharmaceuticals'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.
Cumberland Pharmaceuticals Sloan Ratio % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Cumberland Pharmaceuticals's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cumberland Pharmaceuticals's Sloan Ratio % falls into.
Cumberland Pharmaceuticals 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.
Cumberland Pharmaceuticals's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -0.741 (Jun. 2025 ) + -1.941 (Sep. 2025 ) + -1.412 (Dec. 2025 ) + -3.29 (Mar. 2026 ) = $-7.38 Mil.
Cumberland Pharmaceuticals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 0.844 (Jun. 2025 ) + 0.187 (Sep. 2025 ) + 0.003 (Dec. 2025 ) + 0.387 (Mar. 2026 ) = $1.42 Mil.
Cumberland Pharmaceuticals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 0.286 (Jun. 2025 ) + -0.691 (Sep. 2025 ) + -3.073 (Dec. 2025 ) + -0.061 (Mar. 2026 ) = $-3.54 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.
Cumberland Pharmaceuticals (CPIX) has a Sloan Ratio % of -7.42% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Cumberland Pharmaceuticals and its competitors.
Is Cumberland Pharmaceuticals' Sloan Ratio % too high?
Cumberland Pharmaceuticals' current Sloan Ratio % is -7.42%. Overall, Cumberland Pharmaceuticals has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cumberland Pharmaceuticals' Sloan Ratio % compare to INCR and CTOR?
Cumberland Pharmaceuticals' Sloan Ratio % of -7.42% 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 Cumberland Pharmaceuticals and its competitors. Cumberland Pharmaceuticals's current Sloan Ratio % is -7.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cumberland Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Cumberland Pharmaceuticals (CPIX) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.16, compared to a current price of $5.85 — trading 170.8% above its estimated fair value. The current Sloan Ratio % is -7.42%. Cumberland Pharmaceuticals' overall GF Score™ is 36/100 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 Cumberland Pharmaceuticals (CPIX), the current Sloan Ratio % is -7.42% 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 Cumberland Pharmaceuticals (CPIX) Overvalued in 2026?
Based on GuruFocus' analysis, Cumberland Pharmaceuticals stock appears to be overvalued.
The current stock price of $5.85 is trading 170.8% above its estimated GF Value™ of $2.16.
GuruFocus considers Cumberland Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for CPIX:
Sloan Ratio %: -7.42%
GF Value™: $2.16 vs. price of $5.85 (170.8% above fair value)
No single metric tells the full story. See the CPIX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cumberland Pharmaceuticals Inc is a specialty pharmaceutical company focused on the acquisition, development, and commercialization of branded prescription pharmaceutical products. The Company has one operating segment, which is specialty pharmaceutical products. The company's target markets are hospital acute care, gastroenterology, rheumatology, and oncology. The firm promotes its approved products through its hospital, field, and oncology sales divisions in the United States and establishes a network of international partners to register and provide medicines to patients in their countries. Its brands include Acetadote, Caldolor, Kristalose, Sancuso, Vaprisol, and Vibativ. Geographically, the company generates revenue from China, South Korea, Russia, Mexico, Australia, and Saudi Arabia.
36GF Score
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