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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.
Hudaco Industries's Sloan Ratio for the quarter that ended in May. 2026 was -7.17%.
As of May. 2026, Hudaco Industries has a Sloan Ratio of -7.17%, indicating the company is in the safe zone and there is no funny business with accruals.
Hudaco Industries (JSE:HDC) 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 May. 2026, Hudaco Industries has a Sloan Ratio of -7.17%, indicating the company is in the safe zone and there is no funny business with accruals.
Hudaco Industries Sloan Ratio % Related Terms
Hudaco Industries Sloan Ratio % Historical Data
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The historical data trend for Hudaco Industries'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.
JSE:HDC vs GWW, FAST, FERG: Sloan Ratio % Comparison
For the Industrial Distribution subindustry, Hudaco Industries'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.
Hudaco Industries Sloan Ratio % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Hudaco Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hudaco Industries'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.
Hudaco Industries's Sloan Ratio for the fiscal year that ended in Nov. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Hudaco Industries's Net Income for the trailing twelve months (TTM) ended in May. 2026 was 307.267 (Nov. 2025 ) + 179 (May. 2026 ) = R486 Mil.
Hudaco Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 was 820.628 (Nov. 2025 ) + 341 (May. 2026 ) = R1,162 Mil.
Hudaco Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in May. 2026 was -116.621 (Nov. 2025 ) + -91 (May. 2026 ) = R-208 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.
Hudaco Industries (JSE:HDC) has a Sloan Ratio % of -7.17% as of May. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Hudaco Industries and its competitors.
Is Hudaco Industries' Sloan Ratio % too high?
Hudaco Industries' current Sloan Ratio % is -7.17%. Overall, Hudaco Industries has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hudaco Industries' Sloan Ratio % compare to GWW and FAST?
Hudaco Industries' Sloan Ratio % of -7.17% can be compared against companies in the Industrial Distribution 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 Industrial Distribution company?
A good Sloan Ratio % depends on the Industrial Distribution 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 Hudaco Industries and its competitors. Hudaco Industries's current Sloan Ratio % is -7.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hudaco Industries stock overvalued right now?
Based on GuruFocus' analysis, Hudaco Industries (JSE:HDC) is currently considered Fairly Valued. The stock's GF Value™ is R196.74, compared to a current price of R193.41 — trading 1.7% below its estimated fair value. The current Sloan Ratio % is -7.17%. Hudaco Industries' overall GF Score™ is 90/100. 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 Hudaco Industries (JSE:HDC), the current Sloan Ratio % is -7.17% as of May. 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 Hudaco Industries (JSE:HDC) Overvalued in 2026?
Based on GuruFocus' analysis, Hudaco Industries stock appears to be undervalued.
The current stock price of R193.41 is trading 1.7% below its estimated GF Value™ of R196.74.
GuruFocus considers Hudaco Industries to be Fairly Valued.
Key valuation signals for JSE:HDC:
Sloan Ratio %: -7.17%
GF Value™: R196.74 vs. price of R193.41 (1.7% below fair value)
No single metric tells the full story. See the JSE:HDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hudaco Industries Ltd is engaged in importing and distributing branded automotive, industrial and electrical consumable products. The company operates in two business segment such as Consumer-related product segment which includes power tools, security equipment, communication equipment, automotive and batteries, and Engineering consumables segment which consist of bearings, diesel engines and spares, and power transmission. It generates maximum revenue from Engineering consumables segment. Geographically, it derives a majority of revenue from South Africa.
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