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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 Jun. 2026, Ali Alghanim Sons Automotive Co KSC has a Sloan Ratio of -7.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Ali Alghanim Sons Automotive Co KSC (KUW:ALG) 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, Ali Alghanim Sons Automotive Co KSC has a Sloan Ratio of -7.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Ali Alghanim Sons Automotive Co KSC Sloan Ratio % Related Terms
Ali Alghanim Sons Automotive Co KSC 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.
Ali Alghanim Sons Automotive Co KSC Sloan Ratio % Chart
Ali Alghanim Sons Automotive Co KSC Annual Data
Trend
Dec21
Dec22
Dec23
Dec24
Dec25
Sloan Ratio %
-7.88
1.25
8.71
6.13
1.31
Ali Alghanim Sons Automotive Co KSC Quarterly Data
KUW:ALG vs CVNA, PAG, ALTB: Sloan Ratio % Comparison
For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC'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.
Ali Alghanim Sons Automotive Co KSC Sloan Ratio % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC's Sloan Ratio % falls into.
Ali Alghanim Sons Automotive Co KSC 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.
Ali Alghanim Sons Automotive Co KSC's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 6.957654 (Sep. 2025 ) + 7.049667 (Dec. 2025 ) + 4.355747 (Mar. 2026 ) + 4.021535 (Jun. 2026 ) = KWD22.4 Mil.
Ali Alghanim Sons Automotive Co KSC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 20.11554 (Sep. 2025 ) + 22.795579 (Dec. 2025 ) + 2.033752 (Mar. 2026 ) + 13.355308 (Jun. 2026 ) = KWD58.3 Mil.
Ali Alghanim Sons Automotive Co KSC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -3.86727 (Sep. 2025 ) + -4.875578 (Dec. 2025 ) + -4.368321 (Mar. 2026 ) + -2.934831 (Jun. 2026 ) = KWD-16.0 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.
Ali Alghanim Sons Automotive Co KSC (KUW:ALG) has a Sloan Ratio % of -7.18% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Ali Alghanim Sons Automotive Co KSC and its competitors.
Is Ali Alghanim Sons Automotive Co KSC's Sloan Ratio % too high?
Ali Alghanim Sons Automotive Co KSC's current Sloan Ratio % is -7.18%. Overall, Ali Alghanim Sons Automotive Co KSC has a GF Score™ of 21/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ali Alghanim Sons Automotive Co KSC's Sloan Ratio % compare to CVNA and PAG?
Ali Alghanim Sons Automotive Co KSC's Sloan Ratio % of -7.18% can be compared against companies in the Vehicles & Parts 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 Vehicles & Parts company?
A good Sloan Ratio % depends on the Vehicles & Parts 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 Ali Alghanim Sons Automotive Co KSC and its competitors. Ali Alghanim Sons Automotive Co KSC's current Sloan Ratio % is -7.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ali Alghanim Sons Automotive Co KSC stock overvalued right now?
Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC (KUW:ALG) is currently considered Fairly Valued. The stock's GF Value™ is KWD0.90, compared to a current price of KWD0.90 — trading right at its estimated fair value. The current Sloan Ratio % is -7.18%. Ali Alghanim Sons Automotive Co KSC's overall GF Score™ is 21/100 with 7 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG), the current Sloan Ratio % is -7.18% 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 Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Overvalued in 2026?
Based on GuruFocus' analysis, Ali Alghanim Sons Automotive Co KSC stock appears to be undervalued.
The current stock price of KWD0.90 is trading 0% below its estimated GF Value™ of KWD0.90.
GuruFocus considers Ali Alghanim Sons Automotive Co KSC to be Fairly Valued.
Key valuation signals for KUW:ALG:
Sloan Ratio %: -7.18%
GF Value™: KWD0.90 vs. price of KWD0.90 (0% below fair value)
No single metric tells the full story. See the KUW:ALG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business, with activities including the sale and purchase of cars and spare parts, import and export of light and heavy vehicles, car rental services, maintenance of vehicles, trading of auto spare parts, and equipment rental and maintenance. The Group operates across three geographical segments, namely the State of Kuwait, Iraq, and the United Arab Emirates, with the State of Kuwait contributing the majority of its revenue.
21GF 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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