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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 Dec. 2025, Hong Kong and China Gas Co has a Sloan Ratio of -1.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Hong Kong and China Gas Co (OTCPK:HOKCF) 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, Hong Kong and China Gas Co has a Sloan Ratio of -1.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Hong Kong and China Gas Co Sloan Ratio % Related Terms
Hong Kong and China Gas Co 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 Utilities - Regulated Gas subindustry, Hong Kong and China Gas Co'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.
Hong Kong and China Gas Co Sloan Ratio % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hong Kong and China Gas Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hong Kong and China Gas Co's Sloan Ratio % falls into.
Hong Kong and China Gas Co 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Hong Kong and China Gas Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 377.647 (Jun. 2025 ) + 350.118 (Dec. 2025 ) = $728 Mil.
Hong Kong and China Gas Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 704.406 (Jun. 2025 ) + 643.173 (Dec. 2025 ) = $1,348 Mil.
Hong Kong and China Gas Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -80.142 (Jun. 2025 ) + -251.774 (Dec. 2025 ) = $-332 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.
Hong Kong and China Gas Co (HOKCF) has a Sloan Ratio % of -1.37% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Hong Kong and China Gas Co and its competitors.
Is Hong Kong and China Gas Co's Sloan Ratio % too high?
Hong Kong and China Gas Co's current Sloan Ratio % is -1.37%. Overall, Hong Kong and China Gas Co has a GF Score™ of 42/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Kong and China Gas Co's Sloan Ratio % compare to ATO and NI?
Hong Kong and China Gas Co's Sloan Ratio % of -1.37% can be compared against companies in the Utilities - Regulated 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 an Utilities - Regulated company?
A good Sloan Ratio % depends on the Utilities - Regulated 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 Hong Kong and China Gas Co and its competitors. Hong Kong and China Gas Co's current Sloan Ratio % is -1.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Kong and China Gas Co stock overvalued right now?
Based on GuruFocus' analysis, Hong Kong and China Gas Co (HOKCF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.72, compared to a current price of $0.83 — trading 15.3% above its estimated fair value. The current Sloan Ratio % is -1.37%. Hong Kong and China Gas Co's overall GF Score™ is 42/100 with 12 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 Hong Kong and China Gas Co (HOKCF), the current Sloan Ratio % is -1.37% 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 Hong Kong and China Gas Co (HOKCF) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Kong and China Gas Co stock appears to be overvalued.
The current stock price of $0.83 is trading 15.3% above its estimated GF Value™ of $0.72.
GuruFocus considers Hong Kong and China Gas Co to be Modestly Overvalued.
Key valuation signals for HOKCF:
Sloan Ratio %: -1.37%
GF Value™: $0.72 vs. price of $0.83 (15.3% above fair value)
No single metric tells the full story. See the HOKCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Kong and China Gas Co Ltd, is the oldest public utility company in Hong Kong. The company's core business comprises the production and distribution of town gas in Hong Kong, with a monopoly on distribution and retail. The company is also investing in water, upstream gas, and new energies. The Group's principal activities are the production, distribution, and marketing of gas and related products or services, water supply and waste treatment, renewable energy businesses, extended businesses, and fuels businesses (Green Fuels) in Hong Kong and the Chinese mainland. The company operates in three segments: Gas, water and waste treatment, renewable energy, extended businesses, and related businesses, Green Fuels, and Property.
42GF 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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