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.
Dynex Capital's Sloan Ratio for the quarter that ended in Mar. 2026 was 59.20%.
Warning Sign:
When sloan ratio (47.7)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2026, Dynex Capital has a Sloan Ratio of 59.20%, indicating earnings are more likely to be made up of accruals.
Dynex Capital (NYSE:DX) 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, Dynex Capital has a Sloan Ratio of 59.20%, indicating earnings are more likely to be made up of accruals.
Dynex Capital Sloan Ratio % Related Terms
Dynex Capital Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Dynex Capital'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.
For the REIT - Mortgage subindustry, Dynex Capital'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.
Dynex Capital Sloan Ratio % vs REITs Industry
For the REITs industry and Real Estate sector, Dynex Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dynex Capital'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.
Dynex Capital's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Dynex Capital's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -13.606 (Jun. 2025 ) + 150.388 (Sep. 2025 ) + 185.359 (Dec. 2025 ) + -80.362 (Mar. 2026 ) = $241.8 Mil.
Dynex Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 31.879 (Jun. 2025 ) + 68.275 (Sep. 2025 ) + 14.304 (Dec. 2025 ) + 69.849 (Mar. 2026 ) = $184.3 Mil.
Dynex Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -1505.066 (Jun. 2025 ) + -3287.641 (Sep. 2025 ) + -2372.914 (Dec. 2025 ) + -7188.533 (Mar. 2026 ) = $-14,354.2 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.
Dynex Capital (DX) has a Sloan Ratio % of 59.20% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Dynex Capital and its competitors.
Is Dynex Capital's Sloan Ratio % too high?
Dynex Capital's current Sloan Ratio % is 59.20%. Overall, Dynex Capital has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dynex Capital's Sloan Ratio % compare to BXMT and ARR?
Dynex Capital's Sloan Ratio % of 59.20% can be compared against companies in the REITs 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 REITs company?
A good Sloan Ratio % depends on the REITs 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 Dynex Capital and its competitors. Dynex Capital's current Sloan Ratio % is 59.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dynex Capital stock overvalued right now?
Based on GuruFocus' analysis, Dynex Capital (DX) is currently considered Significantly Undervalued. The stock's GF Value™ is $19.80, compared to a current price of $13.15 — trading 33.6% below its estimated fair value. The current Sloan Ratio % is 59.20%. Dynex Capital's overall GF Score™ is 67/100 with 4 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 Dynex Capital (DX), the current Sloan Ratio % is 59.20% 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 Dynex Capital (DX) Overvalued in 2026?
Based on GuruFocus' analysis, Dynex Capital stock appears to be undervalued.
The current stock price of $13.15 is trading 33.6% below its estimated GF Value™ of $19.80.
GuruFocus considers Dynex Capital to be Significantly Undervalued.
Key valuation signals for DX:
Sloan Ratio %: 59.20%
GF Value™: $19.80 vs. price of $13.15 (33.6% below fair value)
No single metric tells the full story. See the DX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dynex Capital Inc is a real estate investment trust (REIT) focused on delivering dividends supported by long term returns from investments in mortgage assets backed by U.S. housing and commercial real estate. The Company is internally managed and mainly invests in residential and commercial mortgage-backed securities (RMBS and CMBS), which are Agency securities guaranteed by U.S. government-sponsored enterprises (GSEs). It manages interest rate, prepayment, spread, liquidity, and counterparty risks and operates through one reportable segment investing in MBS funded with repurchase agreements and equity.
67GF Score
Get the complete analysis for DX
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DX has been successfully added to your 
