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.
Ignitis Group AB's Sloan Ratio for the quarter that ended in Mar. 2026 was 5.43%.
As of Mar. 2026, Ignitis Group AB has a Sloan Ratio of 5.43%, indicating the company is in the safe zone and there is no funny business with accruals.
Ignitis Group AB (LSE:IGN) 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 Mar. 2026, Ignitis Group AB has a Sloan Ratio of 5.43%, indicating the company is in the safe zone and there is no funny business with accruals.
Ignitis Group AB Sloan Ratio % Related Terms
Ignitis Group AB Sloan Ratio % Historical Data
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The historical data trend for Ignitis Group AB'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 Utilities - Diversified subindustry, Ignitis Group AB'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.
Ignitis Group AB Sloan Ratio % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Ignitis Group AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ignitis Group AB'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.
Ignitis Group AB's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Ignitis Group AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 27.5 (Jun. 2025 ) + 21 (Sep. 2025 ) + 31.1 (Dec. 2025 ) + 72.8 (Mar. 2026 ) = €152 Mil.
Ignitis Group AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 248.3 (Jun. 2025 ) + 30 (Sep. 2025 ) + 118.7 (Dec. 2025 ) + 116.1 (Mar. 2026 ) = €513 Mil.
Ignitis Group AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -180.8 (Jun. 2025 ) + -191.1 (Sep. 2025 ) + -176.8 (Dec. 2025 ) + -164.2 (Mar. 2026 ) = €-713 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.
Ignitis Group AB (LSE:IGN) has a Sloan Ratio % of 5.43% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Ignitis Group AB and its competitors.
Is Ignitis Group AB's Sloan Ratio % too high?
Ignitis Group AB's current Sloan Ratio % is 5.43%. Overall, Ignitis Group AB has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ignitis Group AB's Sloan Ratio % compare to SRE and AES?
Ignitis Group AB's Sloan Ratio % of 5.43% can be compared against companies in the Utilities - Regulated 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 an Utilities - Regulated company?
A good Sloan Ratio % depends on the Utilities - Regulated 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 Ignitis Group AB and its competitors. Ignitis Group AB's current Sloan Ratio % is 5.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ignitis Group AB stock overvalued right now?
Based on GuruFocus' analysis, Ignitis Group AB (LSE:IGN) is currently considered Fairly Valued. The stock's GF Value™ is €21.64, compared to a current price of €21.40 — trading 1.1% below its estimated fair value. The current Sloan Ratio % is 5.43%. Ignitis Group AB's overall GF Score™ is 71/100 with 10 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 Ignitis Group AB (LSE:IGN), the current Sloan Ratio % is 5.43% as of Mar. 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 Ignitis Group AB (LSE:IGN) Overvalued in 2026?
Based on GuruFocus' analysis, Ignitis Group AB stock appears to be undervalued.
The current stock price of €21.40 is trading 1.1% below its estimated GF Value™ of €21.64.
GuruFocus considers Ignitis Group AB to be Fairly Valued.
Key valuation signals for LSE:IGN:
Sloan Ratio %: 5.43%
GF Value™: €21.64 vs. price of €21.40 (1.1% below fair value)
No single metric tells the full story. See the LSE:IGN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ignitis Group AB is engaged in green electricity generation and development of green and flexible technologies, energy distribution and supply, development of energy-smart solutions and other related activities. The company is focusing on green generation and green flexibility technologies: onshore and offshore wind, batteries, pumped-storage hydro and power-to-X (P2X). Its business segments include Green Capacities, Networks, Reserve Capacities, Customers & Solutions, and Others. The company derives maximum revenue from Customers & Solutions segment. Geographically, it operates in Lithuania, Poland, Latvia, Finland, Estonia and Other Countries, out of which Lithuania generates majority revenue.
71GF Score
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