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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.
Kontoor Brands's Sloan Ratio for the quarter that ended in Jun. 2026 was -6.59%.
Warning Sign:
When sloan ratio (25.96)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2026, Kontoor Brands has a Sloan Ratio of -6.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Kontoor Brands (NYSE:KTB) 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 Jun. 2026, Kontoor Brands has a Sloan Ratio of -6.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Kontoor Brands Sloan Ratio % Related Terms
Kontoor Brands Sloan Ratio % Historical Data
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The historical data trend for Kontoor Brands'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 Apparel Manufacturing subindustry, Kontoor Brands'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.
Kontoor Brands Sloan Ratio % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Kontoor Brands's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kontoor Brands'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.
Kontoor Brands's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Kontoor Brands's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 35.31 (Sep. 2025 ) + 70.244 (Dec. 2025 ) + 87.04 (Mar. 2026 ) + 62.203 (Jun. 2026 ) = $255 Mil.
Kontoor Brands's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 64.146 (Sep. 2025 ) + 288.355 (Dec. 2025 ) + 46.261 (Mar. 2026 ) + 47.371 (Jun. 2026 ) = $446 Mil.
Kontoor Brands's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -34.496 (Sep. 2025 ) + -8.844 (Dec. 2025 ) + 3.905 (Mar. 2026 ) + 23.633 (Jun. 2026 ) = $-16 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.
Kontoor Brands (KTB) has a Sloan Ratio % of -6.59% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Kontoor Brands and its competitors.
Is Kontoor Brands' Sloan Ratio % too high?
Kontoor Brands' current Sloan Ratio % is -6.59%. Overall, Kontoor Brands has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kontoor Brands' Sloan Ratio % compare to ZGN and PVH?
Kontoor Brands' Sloan Ratio % of -6.59% can be compared against companies in the Manufacturing - Apparel & Accessories 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 Manufacturing - Apparel & Accessories company?
A good Sloan Ratio % depends on the Manufacturing - Apparel & Accessories 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 Kontoor Brands and its competitors. Kontoor Brands's current Sloan Ratio % is -6.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kontoor Brands stock overvalued right now?
Based on GuruFocus' analysis, Kontoor Brands (KTB) is currently considered Modestly Undervalued. The stock's GF Value™ is $76.64, compared to a current price of $66.41 — trading 13.3% below its estimated fair value. The current Sloan Ratio % is -6.59%. Kontoor Brands' overall GF Score™ is 81/100 with 3 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 Kontoor Brands (KTB), the current Sloan Ratio % is -6.59% as of Jun. 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 Kontoor Brands (KTB) Overvalued in 2026?
Based on GuruFocus' analysis, Kontoor Brands stock appears to be undervalued.
The current stock price of $66.41 is trading 13.3% below its estimated GF Value™ of $76.64.
GuruFocus considers Kontoor Brands to be Modestly Undervalued.
Key valuation signals for KTB:
Sloan Ratio %: -6.59%
GF Value™: $76.64 vs. price of $66.41 (13.3% below fair value)
No single metric tells the full story. See the KTB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kontoor Brands Inc is a lifestyle apparel company. It designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories, mainly under the brand names Wrangler, Lee, Helly Hansen, and a few other brands. The company also licenses the use of its brands in certain regions. Its products are sold through wholesale and direct-to-consumer channels in the United States (its key revenue-generating market) and internationally, mainly in Europe, Middle East and Africa (EMEA), Asia-Pacific (APAC), and Non-U.S. Americas regions. The company's three reportable segments are Wrangler, Lee, and Helly Hansen. The majority of its revenue is generated from the Wrangler segment, which offers denim, apparel, footwear, and accessories through Wrangler and various sub-brands.
81GF Score
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