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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.
Lifeway Foods's Sloan Ratio for the quarter that ended in Jun. 2026 was 31.25%.
As of Jun. 2026, Lifeway Foods has a Sloan Ratio of 31.25%, indicating there is a warning stage of accrual build up.
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, Lifeway Foods has a Sloan Ratio of 31.25%, indicating there is a warning stage of accrual build up.
Lifeway Foods Sloan Ratio % Related Terms
Lifeway Foods Sloan Ratio % Historical Data
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The historical data trend for Lifeway Foods'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:LWF vs USNA, ENHA, NATR: Sloan Ratio % Comparison
For the Packaged Foods subindustry, Lifeway Foods'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.
Lifeway Foods Sloan Ratio % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lifeway Foods's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lifeway Foods'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.
Lifeway Foods's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Lifeway Foods's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 3.007 (Sep. 2025 ) + 2.17 (Dec. 2025 ) + 4.043 (Mar. 2026 ) + 0.11 (Jun. 2026 ) = €9.3 Mil.
Lifeway Foods's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 5.895 (Sep. 2025 ) + 0.228 (Dec. 2025 ) + 3.787 (Mar. 2026 ) + -0.294 (Jun. 2026 ) = €9.6 Mil.
Lifeway Foods's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -4.387 (Sep. 2025 ) + -15.104 (Dec. 2025 ) + -9.55 (Mar. 2026 ) + -7.153 (Jun. 2026 ) = €-36.2 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.
Lifeway Foods (FRA:LWF) has a Sloan Ratio % of 31.25% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Lifeway Foods and its competitors.
Is Lifeway Foods' Sloan Ratio % too high?
Lifeway Foods' current Sloan Ratio % is 31.25%. Overall, Lifeway Foods has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lifeway Foods' Sloan Ratio % compare to USNA and ENHA?
Lifeway Foods' Sloan Ratio % of 31.25% can be compared against companies in the Consumer Packaged Goods 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 Consumer Packaged Goods company?
A good Sloan Ratio % depends on the Consumer Packaged Goods 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 Lifeway Foods and its competitors. Lifeway Foods's current Sloan Ratio % is 31.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lifeway Foods stock overvalued right now?
Based on GuruFocus' analysis, Lifeway Foods (FRA:LWF) is currently considered Fairly Valued. The stock's GF Value™ is €23.83, compared to a current price of €22.00 — trading 7.7% below its estimated fair value. The current Sloan Ratio % is 31.25%. Lifeway Foods' overall GF Score™ is 86/100 with 1 warning sign 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 Lifeway Foods (FRA:LWF), the current Sloan Ratio % is 31.25% 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 Lifeway Foods (FRA:LWF) Overvalued in 2026?
Based on GuruFocus' analysis, Lifeway Foods stock appears to be undervalued.
The current stock price of €22.00 is trading 7.7% below its estimated GF Value™ of €23.83.
GuruFocus considers Lifeway Foods to be Fairly Valued.
Key valuation signals for FRA:LWF:
Sloan Ratio %: 31.25%
GF Value™: €23.83 vs. price of €22.00 (7.7% below fair value)
No single metric tells the full story. See the FRA:LWF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lifeway Foods Inc is engaged in manufacturing probiotic, cultured, functional dairy health food products. Its primary product is drinkable kefir, which is a cultured dairy product. Its product categories are Drinkable Kefir, which is the key revenue-driving product, European-style soft cheeses, Cream, ProBugs, Frozen Kefir, and Other dairy. The company manufactures and markets products under the Lifeway and Fresh Made brand names, as well as under private labels on behalf of customers. It sells the products through a direct sales force, brokers, and distributors.
86GF Score
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