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.
Johnson Matthey's Sloan Ratio for the quarter that ended in Mar. 2026 was -6.33%.
As of Mar. 2026, Johnson Matthey has a Sloan Ratio of -6.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Johnson Matthey (OTCPK:JMPLF) 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, Johnson Matthey has a Sloan Ratio of -6.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Johnson Matthey Sloan Ratio % Related Terms
Johnson Matthey Sloan Ratio % Historical Data
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The historical data trend for Johnson Matthey'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 Specialty Chemicals subindustry, Johnson Matthey'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.
Johnson Matthey Sloan Ratio % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Johnson Matthey's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Johnson Matthey'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.
Johnson Matthey's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Johnson Matthey's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -24.324 (Sep. 2025 ) + -104 (Mar. 2026 ) = $-128 Mil.
Johnson Matthey's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 217.568 (Sep. 2025 ) + 405.333 (Mar. 2026 ) = $623 Mil.
Johnson Matthey's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -145.946 (Sep. 2025 ) + -101.333 (Mar. 2026 ) = $-247 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.
Johnson Matthey (JMPLF) has a Sloan Ratio % of -6.33% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Johnson Matthey and its competitors.
Is Johnson Matthey's Sloan Ratio % too high?
Johnson Matthey's current Sloan Ratio % is -6.33%. Overall, Johnson Matthey has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson Matthey's Sloan Ratio % compare to LIN and SHW?
Johnson Matthey's Sloan Ratio % of -6.33% 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 Johnson Matthey and its competitors. Johnson Matthey's current Sloan Ratio % is -6.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson Matthey stock overvalued right now?
Based on GuruFocus' analysis, Johnson Matthey (JMPLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $19.81, compared to a current price of $28.61 — trading 44.4% above its estimated fair value. The current Sloan Ratio % is -6.33%. Johnson Matthey's overall GF Score™ is 64/100 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 Johnson Matthey (JMPLF), the current Sloan Ratio % is -6.33% 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 Johnson Matthey (JMPLF) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson Matthey stock appears to be overvalued.
The current stock price of $28.61 is trading 44.4% above its estimated GF Value™ of $19.81.
GuruFocus considers Johnson Matthey to be Significantly Overvalued.
Key valuation signals for JMPLF:
Sloan Ratio %: -6.33%
GF Value™: $19.81 vs. price of $28.61 (44.4% above fair value)
No single metric tells the full story. See the JMPLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson Matthey PLC is a platinum group metals (PGMs) company. It uses metal chemistry, catalysis, and process engineering and provides technology and expertise to energy, chemicals, and automotive companies to decarbonise, reduce harmful emissions, and improve sustainability. Its segments include Clean Air, PGM Services, Catalyst Technologies, Hydrogen Technologies and Value Businesses. The company generates maximum revenue from the PGM Services segment, which enables the energy transition through providing circular solutions as demand for scarce critical materials increases, provides a strategic service to the group supporting the other segments with security of metal supply, and manufactures value-added PGM products. The company derives key revenue from the United Kingdom.
64GF Score
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