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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.
Lumen Technologies's Sloan Ratio for the quarter that ended in Jun. 2026 was -22.23%.
As of Jun. 2026, Lumen Technologies has a Sloan Ratio of -22.23%, indicating there is a warning stage of accrual build up.
Lumen Technologies (FRA:CYTH) 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, Lumen Technologies has a Sloan Ratio of -22.23%, indicating there is a warning stage of accrual build up.
Lumen Technologies Sloan Ratio % Related Terms
Lumen Technologies Sloan Ratio % Historical Data
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The historical data trend for Lumen 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.
FRA:CYTH vs IRDM, LBRDA, TDS: Sloan Ratio % Comparison
For the Telecom Services subindustry, Lumen 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.
Lumen Technologies Sloan Ratio % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Lumen Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lumen 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.
Lumen Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Lumen Technologies's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was -529.092 (Sep. 2025 ) + -1.708 (Dec. 2025 ) + -173 (Mar. 2026 ) + -174.468 (Jun. 2026 ) = €-878 Mil.
Lumen Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 2139.372 (Sep. 2025 ) + 479.948 (Dec. 2025 ) + 1144.395 (Mar. 2026 ) + 842.828 (Jun. 2026 ) = €4,607 Mil.
Lumen Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -875.004 (Sep. 2025 ) + -1397.144 (Dec. 2025 ) + 3503.25 (Mar. 2026 ) + -775.992 (Jun. 2026 ) = €455 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.
Lumen Technologies (FRA:CYTH) has a Sloan Ratio % of -22.23% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Lumen Technologies and its competitors.
Is Lumen Technologies' Sloan Ratio % too high?
Lumen Technologies' current Sloan Ratio % is -22.23%. Overall, Lumen Technologies has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lumen Technologies' Sloan Ratio % compare to IRDM and LBRDA?
Lumen Technologies' Sloan Ratio % of -22.23% 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 Lumen Technologies and its competitors. Lumen Technologies's current Sloan Ratio % is -22.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lumen Technologies stock overvalued right now?
Based on GuruFocus' analysis, Lumen Technologies (FRA:CYTH) is currently considered Significantly Overvalued. The stock's GF Value™ is €3.76, compared to a current price of €5.78 — trading 53.7% above its estimated fair value. The current Sloan Ratio % is -22.23%. Lumen Technologies' overall GF Score™ is 53/100 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 Lumen Technologies (FRA:CYTH), the current Sloan Ratio % is -22.23% 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 Lumen Technologies (FRA:CYTH) Overvalued in 2026?
Based on GuruFocus' analysis, Lumen Technologies stock appears to be overvalued.
The current stock price of €5.78 is trading 53.7% above its estimated GF Value™ of €3.76.
GuruFocus considers Lumen Technologies to be Significantly Overvalued.
Key valuation signals for FRA:CYTH:
Sloan Ratio %: -22.23%
GF Value™: €3.76 vs. price of €5.78 (53.7% above fair value)
No single metric tells the full story. See the FRA:CYTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lumen Technologies is one of the largest telecommunications carriers serving global enterprises. The merger with Level 3 in 2017, the 2022 divestiture of much of its local phone business in rural areas, and the 2026 sale of its remaining consumer fiber network to AT&T have shifted the company's operations away from the legacy consumer business and toward enterprise services, which account for about 85%-90% of revenue. Lumen offers businesses a full suite of communications services, providing colocation and data center services, data transportation, phone service, and internet access.
53GF Score
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