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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.
China Water Industry Group (FRA:HAU) 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 Dec. 2025, China Water Industry Group has a Sloan Ratio of -15.68%, indicating there is a warning stage of accrual build up.
China Water Industry Group Sloan Ratio % Related Terms
China Water Industry Group 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:HAU vs AWK, WTRG, AWR: Sloan Ratio % Comparison
For the Utilities - Regulated Water subindustry, China Water Industry Group'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.
China Water Industry Group Sloan Ratio % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Water Industry Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where China Water Industry Group's Sloan Ratio % falls into.
China Water Industry Group Sloan Ratio % Calculation
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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
China Water Industry Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was -6.586 (Jun. 2025 ) + -23.752 (Dec. 2025 ) = €-30.34 Mil.
China Water Industry Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 0.268 (Jun. 2025 ) + 3.33 (Dec. 2025 ) = €3.60 Mil.
China Water Industry Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was 0.291 (Jun. 2025 ) + 0.482 (Dec. 2025 ) = €0.77 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.
China Water Industry Group (FRA:HAU) has a Sloan Ratio % of -15.68% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on China Water Industry Group and its competitors.
Is China Water Industry Group's Sloan Ratio % too high?
China Water Industry Group's current Sloan Ratio % is -15.68%. Overall, China Water Industry Group has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does China Water Industry Group's Sloan Ratio % compare to AWK and WTRG?
China Water Industry Group's Sloan Ratio % of -15.68% can be compared against companies in the Utilities - Regulated 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 Utilities - Regulated company?
A good Sloan Ratio % depends on the Utilities - Regulated 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 China Water Industry Group and its competitors. China Water Industry Group's current Sloan Ratio % is -15.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Water Industry Group stock overvalued right now?
China Water Industry Group (FRA:HAU) has a current Sloan Ratio % of -15.68%. The stock's GF Value™ is €0.01, compared to a current price of €0.02 — trading 90% above its estimated fair value. The current Sloan Ratio % is -15.68%. China Water Industry Group's overall GF Score™ is 33/100 with 11 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 China Water Industry Group (FRA:HAU), the current Sloan Ratio % is -15.68% as of Dec. 2025. 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 China Water Industry Group (FRA:HAU) Overvalued in 2026?
Based on GuruFocus' analysis, China Water Industry Group stock appears to be overvalued.
The current stock price of €0.02 is trading 90% above its estimated GF Value™ of €0.01.
Key valuation signals for FRA:HAU:
Sloan Ratio %: -15.68%
GF Value™: €0.01 vs. price of €0.02 (90% above fair value)
No single metric tells the full story. See the FRA:HAU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressDashi First Road, Xili Community, Xili Street, Room 2204, 22nd Floor, Block A, Building 6, Shenzhen International Innovation Valley, Nanshan District, Shenzhen, CHN
China Water Industry Group Ltd is an investment holding company engaged in the water supplying and energy related business. The company operates in business segments, namely Provision of water supply, sewage treatment, and construction services segment, which generates maximum revenue is engaged in provision of water supply and sewage treatment operations and related construction services; Exploitation and sale of renewable energy segment, engaged in the sale of electricity and CNG from biogas power plants; Property investment and development segment engaged in the sale of commercial and residential units; and waste management and recycling segment focuses on services income from collection and recycling of glass bottles and collection of food waste. It derives maximum revenue from PRC.
33GF 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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