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.
PhotoCure ASA's Sloan Ratio for the quarter that ended in Mar. 2026 was 13.47%.
As of Mar. 2026, PhotoCure ASA has a Sloan Ratio of 13.47%, indicating there is a warning stage of accrual build up.
PhotoCure ASA (FRA:PHS) 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 Mar. 2026, PhotoCure ASA has a Sloan Ratio of 13.47%, indicating there is a warning stage of accrual build up.
PhotoCure ASA Sloan Ratio % Related Terms
PhotoCure ASA Sloan Ratio % Historical Data
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The historical data trend for PhotoCure ASA'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:PHS vs ZTS, UTHR, VTRS: Sloan Ratio % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, PhotoCure ASA'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.
PhotoCure ASA Sloan Ratio % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, PhotoCure ASA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PhotoCure ASA'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.
PhotoCure ASA's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
PhotoCure ASA's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 0.42 (Jun. 2025 ) + 0.341 (Sep. 2025 ) + -0.672 (Dec. 2025 ) + 7.471 (Mar. 2026 ) = €7.56 Mil.
PhotoCure ASA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was -0.59 (Jun. 2025 ) + 2.503 (Sep. 2025 ) + -0.04 (Dec. 2025 ) + 0.069 (Mar. 2026 ) = €1.94 Mil.
PhotoCure ASA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 0.055 (Jun. 2025 ) + -0.727 (Sep. 2025 ) + -0.109 (Dec. 2025 ) + -3.081 (Mar. 2026 ) = €-3.86 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.
PhotoCure ASA (FRA:PHS) has a Sloan Ratio % of 13.47% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on PhotoCure ASA and its competitors.
Is PhotoCure ASA's Sloan Ratio % too high?
PhotoCure ASA's current Sloan Ratio % is 13.47%. Overall, PhotoCure ASA has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PhotoCure ASA's Sloan Ratio % compare to ZTS and UTHR?
PhotoCure ASA's Sloan Ratio % of 13.47% can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?
A good Sloan Ratio % depends on the Drug Manufacturers 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 PhotoCure ASA and its competitors. PhotoCure ASA's current Sloan Ratio % is 13.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PhotoCure ASA stock overvalued right now?
Based on GuruFocus' analysis, PhotoCure ASA (FRA:PHS) is currently considered Modestly Undervalued. The stock's GF Value™ is €6.54, compared to a current price of €5.19 — trading 20.6% below its estimated fair value. The current Sloan Ratio % is 13.47%. PhotoCure ASA's overall GF Score™ is 67/100 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 PhotoCure ASA (FRA:PHS), the current Sloan Ratio % is 13.47% as of Mar. 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 PhotoCure ASA (FRA:PHS) Overvalued in 2026?
Based on GuruFocus' analysis, PhotoCure ASA stock appears to be undervalued.
The current stock price of €5.19 is trading 20.6% below its estimated GF Value™ of €6.54.
GuruFocus considers PhotoCure ASA to be Modestly Undervalued.
Key valuation signals for FRA:PHS:
Sloan Ratio %: 13.47%
GF Value™: €6.54 vs. price of €5.19 (20.6% below fair value)
No single metric tells the full story. See the FRA:PHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PhotoCure ASA is a Norway-based business group associated with the research, development, production, distribution, marketing, and sales of pharmaceutical products and specialty pharmaceutical companies. The technology platform of the company is focused on the field of photodynamic diagnosis and treatment of cancer. The company has two operating segments of the group the Commercial franchise and the Development portfolio. It generates prime revenue from the Commercial franchise segment, which includes Hexvix and Cysview products. Its geographical segments are Nordic countries, Germany, France, Austria, the United Kingdom, BeNeLux, Italy, Other European countries, Canada, and the United States.
67GF Score
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