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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.
As of Jun. 2026, Mitsubishi Chemical Group has a Sloan Ratio of -8.73%, indicating the company is in the safe zone and there is no funny business with accruals.
Mitsubishi Chemical Group (FRA:M3C) 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, Mitsubishi Chemical Group has a Sloan Ratio of -8.73%, indicating the company is in the safe zone and there is no funny business with accruals.
Mitsubishi Chemical Group Sloan Ratio % Related Terms
Mitsubishi Chemical 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:M3C vs LIN, SHW, ECL: Sloan Ratio % Comparison
For the Specialty Chemicals subindustry, Mitsubishi Chemical 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.
Mitsubishi Chemical Group Sloan Ratio % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mitsubishi Chemical Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mitsubishi Chemical Group's Sloan Ratio % falls into.
Mitsubishi Chemical 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.
Mitsubishi Chemical Group's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
Mitsubishi Chemical Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 521.498 (Sep. 2025 ) + -25.76 (Dec. 2025 ) + -510.226 (Mar. 2026 ) + 311.556 (Jun. 2026 ) = €297 Mil.
Mitsubishi Chemical Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 584.34 (Sep. 2025 ) + 471.216 (Dec. 2025 ) + 1028.181 (Mar. 2026 ) + 189.327 (Jun. 2026 ) = €2,273 Mil.
Mitsubishi Chemical Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 1208.64 (Sep. 2025 ) + -278.676 (Dec. 2025 ) + 7.31 (Mar. 2026 ) + -142.259 (Jun. 2026 ) = €795 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.
Mitsubishi Chemical Group (FRA:M3C) has a Sloan Ratio % of -8.73% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Mitsubishi Chemical Group and its competitors.
Is Mitsubishi Chemical Group's Sloan Ratio % too high?
Mitsubishi Chemical Group's current Sloan Ratio % is -8.73%. Overall, Mitsubishi Chemical Group has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mitsubishi Chemical Group's Sloan Ratio % compare to LIN and SHW?
Mitsubishi Chemical Group's Sloan Ratio % of -8.73% can be compared against companies in the Chemicals 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 Chemicals company?
A good Sloan Ratio % depends on the Chemicals 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 Mitsubishi Chemical Group and its competitors. Mitsubishi Chemical Group's current Sloan Ratio % is -8.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitsubishi Chemical Group stock overvalued right now?
Based on GuruFocus' analysis, Mitsubishi Chemical Group (FRA:M3C) is currently considered Significantly Overvalued. The stock's GF Value™ is €4.40, compared to a current price of €5.99 — trading 36.2% above its estimated fair value. The current Sloan Ratio % is -8.73%. Mitsubishi Chemical Group's overall GF Score™ is 74/100 with 10 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 Mitsubishi Chemical Group (FRA:M3C), the current Sloan Ratio % is -8.73% 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 Mitsubishi Chemical Group (FRA:M3C) Overvalued in 2026?
Based on GuruFocus' analysis, Mitsubishi Chemical Group stock appears to be overvalued.
The current stock price of €5.99 is trading 36.2% above its estimated GF Value™ of €4.40.
GuruFocus considers Mitsubishi Chemical Group to be Significantly Overvalued.
Key valuation signals for FRA:M3C:
Sloan Ratio %: -8.73%
GF Value™: €4.40 vs. price of €5.99 (36.2% above fair value)
No single metric tells the full story. See the FRA:M3C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitsubishi Chemical Group Corp is a holding company which manufactures and sells chemicals, plastics, and pharmaceuticals. It organizes itself into five segments. The Basic Materials & Polymers segment covers petrochemical substrates, polyolefins, basic chemicals, sustainable polymers, engineering plastics, and carbon. The Industrial Gas segment focuses on industrial gases. The MMA & Derivatives segment includes MMA, PMMA, coatings, additives, and fine chemicals. The Pharmacy segment is engaged in medicines, and the Specialty Materials segment handles advanced films and polymers, advanced solutions, and advanced composites. The Others segment includes businesses such as engineering, transportation, and warehousing. It generates the majority of its revenue from the Industrial gas segment.
74GF 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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