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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.
When sloan ratio (-27.67)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2026, Lineage Cell Therapeutics has a Sloan Ratio of 4.96%, indicating the company is in the safe zone and there is no funny business with accruals.
Lineage Cell Therapeutics (AMEX:LCTX) 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, Lineage Cell Therapeutics has a Sloan Ratio of 4.96%, indicating the company is in the safe zone and there is no funny business with accruals.
Lineage Cell Therapeutics Sloan Ratio % Related Terms
Lineage Cell Therapeutics 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.
LCTX vs NAGE, IFRX, VRXA: Sloan Ratio % Comparison
For the Biotechnology subindustry, Lineage Cell Therapeutics'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.
Lineage Cell Therapeutics Sloan Ratio % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Lineage Cell Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lineage Cell Therapeutics's Sloan Ratio % falls into.
Lineage Cell Therapeutics 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.
Lineage Cell Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Lineage Cell Therapeutics's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was -29.781 (Sep. 2025 ) + 0.851 (Dec. 2025 ) + -4.812 (Mar. 2026 ) + 1.482 (Jun. 2026 ) = $-32.26 Mil.
Lineage Cell Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was -3.616 (Sep. 2025 ) + -4.878 (Dec. 2025 ) + -8.078 (Mar. 2026 ) + -7.244 (Jun. 2026 ) = $-23.82 Mil.
Lineage Cell Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -0.012 (Sep. 2025 ) + -15.334 (Dec. 2025 ) + -2.326 (Mar. 2026 ) + 3.96 (Jun. 2026 ) = $-13.71 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.
Lineage Cell Therapeutics (LCTX) has a Sloan Ratio % of 4.96% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Lineage Cell Therapeutics and its competitors.
Is Lineage Cell Therapeutics' Sloan Ratio % too high?
Lineage Cell Therapeutics' current Sloan Ratio % is 4.96%. Overall, Lineage Cell Therapeutics has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lineage Cell Therapeutics' Sloan Ratio % compare to NAGE and IFRX?
Lineage Cell Therapeutics' Sloan Ratio % of 4.96% can be compared against companies in the Biotechnology 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 Biotechnology company?
A good Sloan Ratio % depends on the Biotechnology 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 Lineage Cell Therapeutics and its competitors. Lineage Cell Therapeutics's current Sloan Ratio % is 4.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lineage Cell Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, Lineage Cell Therapeutics (LCTX) is currently considered Fairly Valued. The stock's GF Value™ is $1.18, compared to a current price of $1.10 — trading 6.8% below its estimated fair value. The current Sloan Ratio % is 4.96%. Lineage Cell Therapeutics' overall GF Score™ is 79/100 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 Lineage Cell Therapeutics (LCTX), the current Sloan Ratio % is 4.96% 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 Lineage Cell Therapeutics (LCTX) Overvalued in 2026?
Based on GuruFocus' analysis, Lineage Cell Therapeutics stock appears to be undervalued.
The current stock price of $1.10 is trading 6.8% below its estimated GF Value™ of $1.18.
GuruFocus considers Lineage Cell Therapeutics to be Fairly Valued.
Key valuation signals for LCTX:
Sloan Ratio %: 4.96%
GF Value™: $1.18 vs. price of $1.10 (6.8% below fair value)
No single metric tells the full story. See the LCTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lineage Cell Therapeutics Inc is a clinical-stage biotechnology company focused on the development and commercialization of novel therapies for the treatment of degenerative diseases. The company's pipeline currently includes: OpRegen, OPC1, ReSonance, ILT1, RND1, PNC1, and LCT-CON. Its programs are based on its proprietary, in-house, cell-based manufacturing platform, which it call AlloSCOPE (Allogeneic, Scalable, Consistent, Off-the-shelf, Pluripotent Cell Engineering), and supported by its associated development, formulation, manufacturing, and delivery capabilities. The AlloSCOPE platform is a proprietary differentiation and production modality from which, a single, well-characterized pluripotent cell line can create a stable current Good Manufacturing Practice, master cell bank.
79GF Score
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