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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.
Loop Industries's Sloan Ratio for the quarter that ended in May. 2026 was -43.10%.
As of May. 2026, Loop Industries has a Sloan Ratio of -43.10%, indicating there is a warning stage of accrual build up.
Loop Industries (NAS:LOOP) 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, Loop Industries has a Sloan Ratio of -43.10%, indicating there is a warning stage of accrual build up.
Loop Industries Sloan Ratio % Related Terms
Loop Industries Sloan Ratio % Historical Data
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The historical data trend for Loop 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.
LOOP vs BIOF, FEAM, NNUP: Sloan Ratio % Comparison
For the Specialty Chemicals subindustry, Loop 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.
Loop Industries Sloan Ratio % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Loop Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Loop 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.
Loop Industries's Sloan Ratio for the fiscal year that ended in Feb. 2026 is calculated as
Loop Industries's Net Income for the trailing twelve months (TTM) ended in May. 2026 was -3.204 (Aug. 2025 ) + -2.944 (Nov. 2025 ) + -2.704 (Feb. 2026 ) + -3.385 (May. 2026 ) = $-12.24 Mil.
Loop Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 was -2.522 (Aug. 2025 ) + -1.768 (Nov. 2025 ) + -2.738 (Feb. 2026 ) + -1.229 (May. 2026 ) = $-8.26 Mil.
Loop Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in May. 2026 was -0.018 (Aug. 2025 ) + -1.026 (Nov. 2025 ) + -0.012 (Feb. 2026 ) + -0.035 (May. 2026 ) = $-1.09 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.
Loop Industries (LOOP) has a Sloan Ratio % of -43.10% as of May. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Loop Industries and its competitors.
Is Loop Industries' Sloan Ratio % too high?
Loop Industries' current Sloan Ratio % is -43.10%. Overall, Loop Industries has a GF Score™ of 25/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Loop Industries' Sloan Ratio % compare to BIOF and FEAM?
Loop Industries' Sloan Ratio % of -43.10% can be compared against companies in the Chemicals 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 Chemicals company?
A good Sloan Ratio % depends on the Chemicals 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 Loop Industries and its competitors. Loop Industries's current Sloan Ratio % is -43.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Loop Industries stock overvalued right now?
Based on GuruFocus' analysis, Loop Industries (LOOP) is currently considered Possible Value Trap. The stock's GF Value™ is $5.76, compared to a current price of $0.93 — trading 83.9% below its estimated fair value. The current Sloan Ratio % is -43.10%. Loop Industries' overall GF Score™ is 25/100 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 Loop Industries (LOOP), the current Sloan Ratio % is -43.10% 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 Loop Industries (LOOP) Overvalued in 2026?
Based on GuruFocus' analysis, Loop Industries stock appears to be undervalued.
The current stock price of $0.93 is trading 83.9% below its estimated GF Value™ of $5.76.
GuruFocus considers Loop Industries to be Possible Value Trap.
Key valuation signals for LOOP:
Sloan Ratio %: -43.10%
GF Value™: $5.76 vs. price of $0.93 (83.9% below fair value)
No single metric tells the full story. See the LOOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Loop Industries Inc is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles, packaging, and textiles such as carpets and clothing, into its base building block monomers, DMT and MEG.
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