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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.
Shenwan Hongyuan (HK)'s Sloan Ratio for the quarter that ended in Dec. 2025 was 14.42%.
As of Dec. 2025, Shenwan Hongyuan (HK) has a Sloan Ratio of 14.42%, indicating there is a warning stage of accrual build up.
Shenwan Hongyuan (HK) (FRA:WAY) 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 Dec. 2025, Shenwan Hongyuan (HK) has a Sloan Ratio of 14.42%, indicating there is a warning stage of accrual build up.
Shenwan Hongyuan (HK) Sloan Ratio % Related Terms
Shenwan Hongyuan (HK) Sloan Ratio % Historical Data
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The historical data trend for Shenwan Hongyuan (HK)'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.
For the Capital Markets subindustry, Shenwan Hongyuan (HK)'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.
Shenwan Hongyuan (HK) Sloan Ratio % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Shenwan Hongyuan (HK)'s Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Shenwan Hongyuan (HK)'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.
Shenwan Hongyuan (HK)'s Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Shenwan Hongyuan (HK)'s Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 6.643 (Jun. 2025 ) + 6.673 (Dec. 2025 ) = €13.32 Mil.
Shenwan Hongyuan (HK)'s Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was -73.486 (Jun. 2025 ) + -122.081 (Dec. 2025 ) = €-195.57 Mil.
Shenwan Hongyuan (HK)'s Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was 11.356 (Jun. 2025 ) + -10.627 (Dec. 2025 ) = €0.73 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.
Shenwan Hongyuan (HK) (FRA:WAY) has a Sloan Ratio % of 14.42% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Shenwan Hongyuan (HK) and its competitors.
Is Shenwan Hongyuan (HK)'s Sloan Ratio % too high?
Shenwan Hongyuan (HK)'s current Sloan Ratio % is 14.42%. Overall, Shenwan Hongyuan (HK) has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does Shenwan Hongyuan (HK)'s Sloan Ratio % compare to MS and GS?
Shenwan Hongyuan (HK)'s Sloan Ratio % of 14.42% can be compared against companies in the Capital Markets 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 Capital Markets company?
A good Sloan Ratio % depends on the Capital Markets 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 Shenwan Hongyuan (HK) and its competitors. Shenwan Hongyuan (HK)'s current Sloan Ratio % is 14.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenwan Hongyuan (HK) stock overvalued right now?
Shenwan Hongyuan (HK) (FRA:WAY) has a current Sloan Ratio % of 14.42%. The stock's GF Value™ is €0.07, compared to a current price of €0.09 — trading 27.9% above its estimated fair value. The current Sloan Ratio % is 14.42%. Shenwan Hongyuan (HK)'s overall GF Score™ is 40/100 with 4 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 Shenwan Hongyuan (HK) (FRA:WAY), the current Sloan Ratio % is 14.42% as of Dec. 2025. 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 Shenwan Hongyuan (HK) (FRA:WAY) Overvalued in 2026?
Based on GuruFocus' analysis, Shenwan Hongyuan (HK) stock appears to be overvalued.
The current stock price of €0.09 is trading 27.9% above its estimated GF Value™ of €0.07.
Key valuation signals for FRA:WAY:
Sloan Ratio %: 14.42%
GF Value™: €0.07 vs. price of €0.09 (27.9% above fair value)
No single metric tells the full story. See the FRA:WAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenwan Hongyuan (HK) Ltd is an investment holding company. The business scope of the company covers brokerage business, corporate finance business, asset management business, financing and loans business, and investment and other business. The company has five business segments including Corporate finance, Principal Investment, Wealth management, Institutional services and trading, Asset management, and others. The company's operations are mainly located in Hong Kong. It derives a majority of its revenues from the Wealth management segment.
40GF 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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