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.
Covalon Technologies's Sloan Ratio for the quarter that ended in Mar. 2026 was -8.71%.
As of Mar. 2026, Covalon Technologies has a Sloan Ratio of -8.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Covalon Technologies (OTCPK:CVALF) 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, Covalon Technologies has a Sloan Ratio of -8.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Covalon Technologies Sloan Ratio % Related Terms
Covalon Technologies Sloan Ratio % Historical Data
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The historical data trend for Covalon Technologies'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.
CVALF vs ISRG, BDX, MDLN: Sloan Ratio % Comparison
For the Medical Instruments & Supplies subindustry, Covalon Technologies'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.
Covalon Technologies Sloan Ratio % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Covalon Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Covalon Technologies'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.
Covalon Technologies's Sloan Ratio for the fiscal year that ended in Sep. 2025 is calculated as
Covalon Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 0.048 (Jun. 2025 ) + 0.259 (Sep. 2025 ) + 0.091 (Dec. 2025 ) + 0.797 (Mar. 2026 ) = $1.20 Mil.
Covalon Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 1.578 (Jun. 2025 ) + -0.482 (Sep. 2025 ) + 4.17 (Dec. 2025 ) + -0.839 (Mar. 2026 ) = $4.43 Mil.
Covalon Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -0.323 (Jun. 2025 ) + -0.13 (Sep. 2025 ) + -0.521 (Dec. 2025 ) + -0.152 (Mar. 2026 ) = $-1.13 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.
Covalon Technologies (CVALF) has a Sloan Ratio % of -8.71% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Covalon Technologies and its competitors.
Is Covalon Technologies' Sloan Ratio % too high?
Covalon Technologies' current Sloan Ratio % is -8.71%. Overall, Covalon Technologies has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Covalon Technologies' Sloan Ratio % compare to ISRG and BDX?
Covalon Technologies' Sloan Ratio % of -8.71% can be compared against companies in the Medical Devices & Instruments 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 Medical Devices & Instruments company?
A good Sloan Ratio % depends on the Medical Devices & Instruments 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 Covalon Technologies and its competitors. Covalon Technologies's current Sloan Ratio % is -8.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covalon Technologies stock overvalued right now?
Based on GuruFocus' analysis, Covalon Technologies (CVALF) is currently considered Fairly Valued. The stock's GF Value™ is $1.53, compared to a current price of $1.51 — trading 1.3% below its estimated fair value. The current Sloan Ratio % is -8.71%. Covalon Technologies' overall GF Score™ is 83/100 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 Covalon Technologies (CVALF), the current Sloan Ratio % is -8.71% 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 Covalon Technologies (CVALF) Overvalued in 2026?
Based on GuruFocus' analysis, Covalon Technologies stock appears to be undervalued.
The current stock price of $1.51 is trading 1.3% below its estimated GF Value™ of $1.53.
GuruFocus considers Covalon Technologies to be Fairly Valued.
Key valuation signals for CVALF:
Sloan Ratio %: -8.71%
GF Value™: $1.53 vs. price of $1.51 (1.3% below fair value)
No single metric tells the full story. See the CVALF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Covalon Technologies Ltd is engaged in the business of researching, developing, manufacturing, and marketing patent-protected medical products that improve patient outcomes in the areas of infection management, wound care, and surgical procedures. The company generates revenue through development contracts, licensing agreements, distribution contracts, and sales. Its products include IV dressings, surgical site protection products, vascular access protection products, and others, and its solutions include primary dressing cover, vascular access technologies, advanced wound care, sensitive skin solutions, custom medical coatings, and patient resource support.
83GF Score
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