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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.
SolarEdge Technologies's Sloan Ratio for the quarter that ended in Jun. 2026 was -26.07%.
Warning Sign:
When sloan ratio (-40.77)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2026, SolarEdge Technologies has a Sloan Ratio of -26.07%, indicating earnings are more likely to be made up of accruals.
SolarEdge Technologies (FRA:2ED) 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 Jun. 2026, SolarEdge Technologies has a Sloan Ratio of -26.07%, indicating earnings are more likely to be made up of accruals.
SolarEdge Technologies Sloan Ratio % Related Terms
SolarEdge Technologies 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.
FRA:2ED vs RUN, SHLS, CSIQ: Sloan Ratio % Comparison
For the Solar subindustry, SolarEdge 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.
SolarEdge Technologies Sloan Ratio % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SolarEdge Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SolarEdge 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.
SolarEdge Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
SolarEdge Technologies's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was -42.651 (Sep. 2025 ) + -112.831 (Dec. 2025 ) + -49.622 (Mar. 2026 ) + -26.694 (Jun. 2026 ) = €-232 Mil.
SolarEdge Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 21.818 (Sep. 2025 ) + 44.945 (Dec. 2025 ) + 21.13 (Mar. 2026 ) + 9.909 (Jun. 2026 ) = €98 Mil.
SolarEdge Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 200.726 (Sep. 2025 ) + 6.918 (Dec. 2025 ) + -17.681 (Mar. 2026 ) + 1.657 (Jun. 2026 ) = €192 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.
SolarEdge Technologies (FRA:2ED) has a Sloan Ratio % of -26.07% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on SolarEdge Technologies and its competitors.
Is SolarEdge Technologies' Sloan Ratio % too high?
SolarEdge Technologies' current Sloan Ratio % is -26.07%. Overall, SolarEdge Technologies has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SolarEdge Technologies' Sloan Ratio % compare to RUN and SHLS?
SolarEdge Technologies' Sloan Ratio % of -26.07% can be compared against companies in the Semiconductors 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 Semiconductors company?
A good Sloan Ratio % depends on the Semiconductors 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 SolarEdge Technologies and its competitors. SolarEdge Technologies's current Sloan Ratio % is -26.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SolarEdge Technologies stock overvalued right now?
Based on GuruFocus' analysis, SolarEdge Technologies (FRA:2ED) is currently considered Fairly Valued. The stock's GF Value™ is €25.30, compared to a current price of €28.00 — trading 10.7% above its estimated fair value. The current Sloan Ratio % is -26.07%. SolarEdge Technologies' overall GF Score™ is 73/100 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 SolarEdge Technologies (FRA:2ED), the current Sloan Ratio % is -26.07% as of Jun. 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 SolarEdge Technologies (FRA:2ED) Overvalued in 2026?
Based on GuruFocus' analysis, SolarEdge Technologies stock appears to be overvalued.
The current stock price of €28.00 is trading 10.7% above its estimated GF Value™ of €25.30.
GuruFocus considers SolarEdge Technologies to be Fairly Valued.
Key valuation signals for FRA:2ED:
Sloan Ratio %: -26.07%
GF Value™: €25.30 vs. price of €28.00 (10.7% above fair value)
No single metric tells the full story. See the FRA:2ED stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SolarEdge Technologies designs, develops, and sells direct current optimized inverter systems for solar photovoltaic installations. The company system consists of power optimizers, inverters, and cloud-based monitoring platform and addresses a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations. The company sells its products directly to solar installers, engineering, procurement, and construction firms and indirectly to solar installers through distributors and electrical equipment wholesalers.
73GF Score
Get the complete analysis for FRA:2ED
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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