KGDEF (Kingdee International Software Group Co) Sloan Ratio %: -2.65% (As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

KGDEF Kingdee International Software Group Co Ltd KGDEF
62 GF Score
Price $0.75
GF Value $2.15
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is Kingdee International Software Group Co Sloan Ratio %?

Kingdee International Software Group Co KGDEF -29.34% 62 Sloan Ratio % is -2.65% as of Dec. 2025. GuruFocus rates KGDEF with a GF Score™ of 62/100 and a GF Value™ of $2.15 (Significantly Undervalued). The stock has 2 warning signs investors should review.

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.

Kingdee International Software Group Co's Sloan Ratio for the quarter that ended in Dec. 2025 was -2.65%.

As of Dec. 2025, Kingdee International Software Group Co has a Sloan Ratio of -2.65%, indicating the company is in the safe zone and there is no funny business with accruals.


Kingdee International Software Group Co  (OTCPK:KGDEF) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Kingdee International Software Group Co has a Sloan Ratio of -2.65%, indicating the company is in the safe zone and there is no funny business with accruals.


Kingdee International Software Group Co Sloan Ratio % Related Terms


Kingdee International Software Group Co Sloan Ratio % Historical Data

* Premium members only.

The historical data trend for Kingdee International Software Group Co'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.

Kingdee International Software Group Co Sloan Ratio % Chart

Kingdee International Software Group Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.18 0.20 3.12 -0.01 -2.72

Kingdee International Software Group Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.10 1.80 0.00 -8.38 -2.65

KGDEF vs QH, SHOP, UBER: Sloan Ratio % Comparison

For the Software - Application subindustry, Kingdee International Software Group 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.


Kingdee International Software Group Co Sloan Ratio % vs Software Industry

For the Software industry and Technology sector, Kingdee International Software Group Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Kingdee International Software Group Co's Sloan Ratio % falls into.


KGDEF
62GF Score
Kingdee International Software Group Co Ltd KGDEF
Sloan Ratio % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kingdee International Software Group 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.

Kingdee International Software Group Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2025 )-Cash Flow from Operations (A: Dec. 2025 )
-Cash Flow from Investing (A: Dec. 2025 ))/Total Assets (A: Dec. 2025 )
=(13.192-155.821
--86.215)/2070.946
=-2.72%

Kingdee International Software Group Co's Sloan Ratio for the quarter that ended in Dec. 2025 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2025 )
=(13.457-155.87
--87.452)/2070.946
=-2.65%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Kingdee International Software Group Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was -13.612 (Jun. 2025 ) + 27.069 (Dec. 2025 ) = $13.5 Mil.
Kingdee International Software Group Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was -2.537 (Jun. 2025 ) + 158.407 (Dec. 2025 ) = $155.9 Mil.
Kingdee International Software Group Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was 63.517 (Jun. 2025 ) + -150.969 (Dec. 2025 ) = $-87.5 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.

Frequently Asked Questions Learn more about Sloan Ratio % →
What does a Sloan Ratio % of -2.65% mean?
Kingdee International Software Group Co (KGDEF) has a Sloan Ratio % of -2.65% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Kingdee International Software Group Co and its competitors.
Is Kingdee International Software Group Co's Sloan Ratio % too high?
Kingdee International Software Group Co's current Sloan Ratio % is -2.65%. Overall, Kingdee International Software Group Co has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kingdee International Software Group Co's Sloan Ratio % compare to QH and SHOP?
Kingdee International Software Group Co's Sloan Ratio % of -2.65% can be compared against companies in the Software 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 Software company?
A good Sloan Ratio % depends on the Software 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 Kingdee International Software Group Co and its competitors. Kingdee International Software Group Co's current Sloan Ratio % is -2.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kingdee International Software Group Co stock overvalued right now?
Based on GuruFocus' analysis, Kingdee International Software Group Co (KGDEF) is currently considered Significantly Undervalued. The stock's GF Value™ is $2.15, compared to a current price of $0.75 — trading 65.2% below its estimated fair value. The current Sloan Ratio % is -2.65%. Kingdee International Software Group Co's overall GF Score™ is 62/100 with 2 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 Kingdee International Software Group Co (KGDEF), the current Sloan Ratio % is -2.65% 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 Kingdee International Software Group Co (KGDEF) Overvalued in 2026?

Based on GuruFocus' analysis, Kingdee International Software Group Co stock appears to be undervalued. The current stock price of $0.75 is trading 65.2% below its estimated GF Value™ of $2.15. GuruFocus considers Kingdee International Software Group Co to be Significantly Undervalued.

Key valuation signals for KGDEF:

  • Sloan Ratio %: -2.65%
  • GF Value™: $2.15 vs. price of $0.75 (65.2% below fair value)
  • GF Score™: 62/100 with 2 warning signs

No single metric tells the full story. See the KGDEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kingdee International Software Group Co Business Description

Address Kingdee Software Park, No. 2 Kejinan 12 Road, South District, Hi-Tech Industrial Park, Nanshan District, Guangdong Province, Shenzhen, CHN
Kingdee International Software Group Co Ltd is engaged in cloud services, including enterprise cloud services, small & micro business finance cloud services, and industry cloud services; and enterprise resource planning business, including development and sales of software products. It has two operating segments: Subscription and software- Including subscriptions and sales of software, and Implementation, consulting, maintenance services, and others - including provision of subscription and software implementation services, software solution consulting, maintenance, upgrade, and other supporting services, and others.
62GF Score

Get the complete analysis for KGDEF

Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$0.75
Price
$2.15
GF Value