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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 Mar. 2026, Somnigroup International has a Sloan Ratio of -1.66%, indicating the company is in the safe zone and there is no funny business with accruals.
Somnigroup International (FRA:TPD) 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, Somnigroup International has a Sloan Ratio of -1.66%, indicating the company is in the safe zone and there is no funny business with accruals.
Somnigroup International Sloan Ratio % Related Terms
Somnigroup International 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.
For the Furnishings, Fixtures & Appliances subindustry, Somnigroup International'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.
Somnigroup International Sloan Ratio % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Somnigroup International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Somnigroup International's Sloan Ratio % falls into.
Somnigroup International 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.
Somnigroup International's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Somnigroup International's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 85.833 (Jun. 2025 ) + 151.145 (Sep. 2025 ) + 120.243 (Dec. 2025 ) + 90.133 (Mar. 2026 ) = €447 Mil.
Somnigroup International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 161.349 (Jun. 2025 ) + 347.786 (Sep. 2025 ) + 84.888 (Dec. 2025 ) + 213.222 (Mar. 2026 ) = €807 Mil.
Somnigroup International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -16.646 (Jun. 2025 ) + -59.896 (Sep. 2025 ) + -64.819 (Dec. 2025 ) + -52.505 (Mar. 2026 ) = €-194 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.
Somnigroup International (FRA:TPD) has a Sloan Ratio % of -1.66% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Somnigroup International and its competitors.
Is Somnigroup International's Sloan Ratio % too high?
Somnigroup International's current Sloan Ratio % is -1.66%. Overall, Somnigroup International has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Somnigroup International's Sloan Ratio % compare to SN and MHK?
Somnigroup International's Sloan Ratio % of -1.66% can be compared against companies in the Furnishings, Fixtures & Appliances 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 Furnishings, Fixtures & Appliances company?
A good Sloan Ratio % depends on the Furnishings, Fixtures & Appliances 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 Somnigroup International and its competitors. Somnigroup International's current Sloan Ratio % is -1.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Somnigroup International stock overvalued right now?
Based on GuruFocus' analysis, Somnigroup International (FRA:TPD) is currently considered Fairly Valued. The stock's GF Value™ is €61.18, compared to a current price of €56.74 — trading 7.3% below its estimated fair value. The current Sloan Ratio % is -1.66%. Somnigroup International's overall GF Score™ is 88/100 with 6 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 Somnigroup International (FRA:TPD), the current Sloan Ratio % is -1.66% 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 Somnigroup International (FRA:TPD) Overvalued in 2026?
Based on GuruFocus' analysis, Somnigroup International stock appears to be undervalued.
The current stock price of €56.74 is trading 7.3% below its estimated GF Value™ of €61.18.
GuruFocus considers Somnigroup International to be Fairly Valued.
Key valuation signals for FRA:TPD:
Sloan Ratio %: -1.66%
GF Value™: €61.18 vs. price of €56.74 (7.3% below fair value)
No single metric tells the full story. See the FRA:TPD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Somnigroup International Inc is a bedding company, dedicated to improving people's lives through good sleep. With superior capabilities in design, manufacturing, distribution and retail, It delivers breakthrough sleep solutions and serves the evolving needs of consumers in more than 100 countries world-wide through its fully-owned businesses Mattress Firm, Tempur Sealy North America and Tempur Sealy International. The company's portfolio includes the brand such as Tempur-Pedic, Sealy and Stearns & Foster, and its Multinational omnichannel platform enables the company to meet consumers wherever shop, offering a personal connection and innovation to provide a retail experience and tailored solutions.
88GF Score
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