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 Dec. 2025, China Communications Services has a Sloan Ratio of 4.83%, indicating the company is in the safe zone and there is no funny business with accruals.
China Communications Services (OTCPK:CUCSF) 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, China Communications Services has a Sloan Ratio of 4.83%, indicating the company is in the safe zone and there is no funny business with accruals.
China Communications Services Sloan Ratio % Related Terms
China Communications Services 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 Telecom Services subindustry, China Communications Services'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.
China Communications Services Sloan Ratio % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, China Communications Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Communications Services's Sloan Ratio % falls into.
China Communications Services 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
China Communications Services's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 296.462 (Jun. 2025 ) + 210.317 (Dec. 2025 ) = $507 Mil.
China Communications Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was -1053.678 (Jun. 2025 ) + 1207.341 (Dec. 2025 ) = $154 Mil.
China Communications Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -33.625 (Jun. 2025 ) + -550.875 (Dec. 2025 ) = $-585 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.
China Communications Services (CUCSF) has a Sloan Ratio % of 4.83% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on China Communications Services and its competitors.
Is China Communications Services' Sloan Ratio % too high?
China Communications Services' current Sloan Ratio % is 4.83%. Overall, China Communications Services has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does China Communications Services' Sloan Ratio % compare to TMUS and VZ?
China Communications Services' Sloan Ratio % of 4.83% can be compared against companies in the Telecommunication 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 Telecommunication Services company?
A good Sloan Ratio % depends on the Telecommunication 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 China Communications Services and its competitors. China Communications Services's current Sloan Ratio % is 4.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Communications Services stock overvalued right now?
China Communications Services (CUCSF) has a current Sloan Ratio % of 4.83%. The stock's GF Value™ is $0.60, compared to a current price of $0.54 — trading 10% below its estimated fair value. The current Sloan Ratio % is 4.83%. China Communications Services' overall GF Score™ is 88/100 with 3 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 China Communications Services (CUCSF), the current Sloan Ratio % is 4.83% 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 China Communications Services (CUCSF) Overvalued in 2026?
Based on GuruFocus' analysis, China Communications Services stock appears to be undervalued.
The current stock price of $0.54 is trading 10% below its estimated GF Value™ of $0.60.
Key valuation signals for CUCSF:
Sloan Ratio %: 4.83%
GF Value™: $0.60 vs. price of $0.54 (10% below fair value)
No single metric tells the full story. See the CUCSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Communications Services Business Description
China Communications Services Corp Ltd is a primary service provider in the People's Republic of China that provides integrated comprehensive smart solutions in the field of digital intelligence. The group offers telecommunications infrastructure services, including design, construction and project supervision and management; business process outsourcing services, including management of infrastructure for information technology, general facilities management, supply chain and products distribution; and applications, content and other services, including system integration, software development and system support, and value-added services. It has one operating segment, which is the provision of integrated comprehensive smart solutions in the field of informatisation and digitalisation.
88GF Score
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