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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.
Federated Hermes's Sloan Ratio for the quarter that ended in Jun. 2026 was 10.06%.
As of Jun. 2026, Federated Hermes has a Sloan Ratio of 10.06%, indicating there is a warning stage of accrual build up.
Federated Hermes (FRA:3KC) 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, Federated Hermes has a Sloan Ratio of 10.06%, indicating there is a warning stage of accrual build up.
Federated Hermes Sloan Ratio % Related Terms
Federated Hermes Sloan Ratio % Historical Data
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The historical data trend for Federated Hermes'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.
FRA:3KC vs OTF, DNP, CNS: Sloan Ratio % Comparison
For the Asset Management subindustry, Federated Hermes'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.
Federated Hermes Sloan Ratio % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Federated Hermes'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.
Federated Hermes's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Federated Hermes's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 88.715 (Sep. 2025 ) + 91.411 (Dec. 2025 ) + 83.367 (Mar. 2026 ) + 90.548 (Jun. 2026 ) = €354 Mil.
Federated Hermes's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 87.806 (Sep. 2025 ) + 137.665 (Dec. 2025 ) + 24.954 (Mar. 2026 ) + 70.203 (Jun. 2026 ) = €321 Mil.
Federated Hermes's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 4.643 (Sep. 2025 ) + 12.041 (Dec. 2025 ) + 1.003 (Mar. 2026 ) + -187.709 (Jun. 2026 ) = €-170 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.
Federated Hermes (FRA:3KC) has a Sloan Ratio % of 10.06% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Federated Hermes and its competitors.
Is Federated Hermes' Sloan Ratio % too high?
Federated Hermes' current Sloan Ratio % is 10.06%. Overall, Federated Hermes has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' Sloan Ratio % compare to OTF and DNP?
Federated Hermes' Sloan Ratio % of 10.06% can be compared against companies in the Asset Management 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 an Asset Management company?
A good Sloan Ratio % depends on the Asset Management 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 Federated Hermes and its competitors. Federated Hermes's current Sloan Ratio % is 10.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federated Hermes stock overvalued right now?
Federated Hermes (FRA:3KC) has a current Sloan Ratio % of 10.06%. The stock's GF Value™ is €45.25, compared to a current price of €54.00 — trading 19.3% above its estimated fair value. The current Sloan Ratio % is 10.06%. Federated Hermes' overall GF Score™ is 96/100 with 6 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 Federated Hermes (FRA:3KC), the current Sloan Ratio % is 10.06% 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 Federated Hermes (FRA:3KC) Overvalued in 2026?
Based on GuruFocus' analysis, Federated Hermes stock appears to be overvalued.
The current stock price of €54.00 is trading 19.3% above its estimated GF Value™ of €45.25.
Key valuation signals for FRA:3KC:
Sloan Ratio %: 10.06%
GF Value™: €45.25 vs. price of €54.00 (19.3% above fair value)
No single metric tells the full story. See the FRA:3KC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Federated Hermes provides asset management services for institutional and individual investors. The firm had $902.6 billion in managed assets at the end of 2025, composed of equity (11%), multi-asset (less than 1%), fixed-income (11%), alternative (2%), and money market (76%) funds. The firm's cash management operations are expected to generate around 55% of Federated's revenue this year, compared with 27%, 10%, and 8%, respectively, for the equity, fixed-income, and alternatives/multi-asset/other operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (68% of AUM), institutional investors (25%), and international clients (7%).
96GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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