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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.
Sensient Technologies's Sloan Ratio for the quarter that ended in Mar. 2026 was 5.20%.
As of Mar. 2026, Sensient Technologies has a Sloan Ratio of 5.20%, indicating the company is in the safe zone and there is no funny business with accruals.
Sensient Technologies (FRA:SSF) 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, Sensient Technologies has a Sloan Ratio of 5.20%, indicating the company is in the safe zone and there is no funny business with accruals.
Sensient Technologies Sloan Ratio % Related Terms
Sensient Technologies Sloan Ratio % Historical Data
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The historical data trend for Sensient 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:SSF vs CBT, BCPC, PRM: Sloan Ratio % Comparison
For the Specialty Chemicals subindustry, Sensient 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.
Sensient Technologies Sloan Ratio % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sensient Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sensient 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.
Sensient Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Sensient Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 32.588 (Jun. 2025 ) + 31.487 (Sep. 2025 ) + 21.763 (Dec. 2025 ) + 38.207 (Mar. 2026 ) = €124 Mil.
Sensient Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 41.86 (Jun. 2025 ) + 37.453 (Sep. 2025 ) + 38.057 (Dec. 2025 ) + -11.779 (Mar. 2026 ) = €106 Mil.
Sensient Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -17.52 (Jun. 2025 ) + -16.619 (Sep. 2025 ) + -27.058 (Dec. 2025 ) + -23.287 (Mar. 2026 ) = €-84 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.
Sensient Technologies (FRA:SSF) has a Sloan Ratio % of 5.20% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Sensient Technologies and its competitors.
Is Sensient Technologies' Sloan Ratio % too high?
Sensient Technologies' current Sloan Ratio % is 5.20%. Overall, Sensient Technologies has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sensient Technologies' Sloan Ratio % compare to CBT and BCPC?
Sensient Technologies' Sloan Ratio % of 5.20% 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 Sensient Technologies and its competitors. Sensient Technologies's current Sloan Ratio % is 5.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sensient Technologies stock overvalued right now?
Based on GuruFocus' analysis, Sensient Technologies (FRA:SSF) is currently considered Significantly Overvalued. The stock's GF Value™ is €71.49, compared to a current price of €97.00 — trading 35.7% above its estimated fair value. The current Sloan Ratio % is 5.20%. Sensient Technologies' overall GF Score™ is 84/100 with 8 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 Sensient Technologies (FRA:SSF), the current Sloan Ratio % is 5.20% 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 Sensient Technologies (FRA:SSF) Overvalued in 2026?
Based on GuruFocus' analysis, Sensient Technologies stock appears to be overvalued.
The current stock price of €97.00 is trading 35.7% above its estimated GF Value™ of €71.49.
GuruFocus considers Sensient Technologies to be Significantly Overvalued.
Key valuation signals for FRA:SSF:
Sloan Ratio %: 5.20%
GF Value™: €71.49 vs. price of €97.00 (35.7% above fair value)
No single metric tells the full story. See the FRA:SSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sensient Technologies Corp manufactures and markets natural and synthetic colors, flavors, and other specialty ingredients. Sensient's offerings are predominantly applied to consumer-facing products, including food and beverage, cosmetics and pharmaceuticals, nutraceuticals, and personal care industries. Its principal products are flavors, flavor enhancers, ingredients, extracts, and bionutrients, essential oils, dehydrated vegetables and other food ingredients, natural and synthetic food and beverage colors, and others. The company's reportable segments are: Flavors & Extracts, which derive key revenue, Color, Asia Pacific, and Corporate and Other. Geographically, the company generates maximum revenue from North America, followed by Europe, Asia-Pacific, and other regions.
84GF Score
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