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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.
Phillips 66's Sloan Ratio for the quarter that ended in Mar. 2026 was 7.16%.
As of Mar. 2026, Phillips 66 has a Sloan Ratio of 7.16%, indicating the company is in the safe zone and there is no funny business with accruals.
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, Phillips 66 has a Sloan Ratio of 7.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Phillips 66 Sloan Ratio % Related Terms
Phillips 66 Sloan Ratio % Historical Data
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The historical data trend for Phillips 66'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.
MEX:PSX vs VLO, MPC, DINO: Sloan Ratio % Comparison
For the Oil & Gas Refining & Marketing subindustry, Phillips 66'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.
Phillips 66 Sloan Ratio % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Phillips 66's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Phillips 66'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.
Phillips 66's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Phillips 66's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 16513.208 (Jun. 2025 ) + 2439.779 (Sep. 2025 ) + 52324.564 (Dec. 2025 ) + 3732.769 (Mar. 2026 ) = MXN75,010 Mil.
Phillips 66's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 15910.674 (Jun. 2025 ) + 21609.468 (Sep. 2025 ) + 49551.686 (Dec. 2025 ) + -40826.033 (Mar. 2026 ) = MXN46,246 Mil.
Phillips 66's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -51479.033 (Jun. 2025 ) + -8933.625 (Sep. 2025 ) + -8408.662 (Dec. 2025 ) + -10927.816 (Mar. 2026 ) = MXN-79,749 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.
Phillips 66 (MEX:PSX) has a Sloan Ratio % of 7.16% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Phillips 66 and its competitors.
Is Phillips 66's Sloan Ratio % too high?
Phillips 66's current Sloan Ratio % is 7.16%. Overall, Phillips 66 has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Phillips 66's Sloan Ratio % compare to VLO and MPC?
Phillips 66's Sloan Ratio % of 7.16% can be compared against companies in the Oil & Gas 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 Oil & Gas company?
A good Sloan Ratio % depends on the Oil & Gas 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 Phillips 66 and its competitors. Phillips 66's current Sloan Ratio % is 7.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Phillips 66 stock overvalued right now?
Based on GuruFocus' analysis, Phillips 66 (MEX:PSX) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN2,159.00, compared to a current price of MXN3,300.00 — trading 52.8% above its estimated fair value. The current Sloan Ratio % is 7.16%. Phillips 66's overall GF Score™ is 54/100 with 8 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 Phillips 66 (MEX:PSX), the current Sloan Ratio % is 7.16% 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 Phillips 66 (MEX:PSX) Overvalued in 2026?
Based on GuruFocus' analysis, Phillips 66 stock appears to be overvalued.
The current stock price of MXN3,300.00 is trading 52.8% above its estimated GF Value™ of MXN2,159.00.
GuruFocus considers Phillips 66 to be Significantly Overvalued.
Key valuation signals for MEX:PSX:
Sloan Ratio %: 7.16%
GF Value™: MXN2,159.00 vs. price of MXN3,300.00 (52.8% above fair value)
No single metric tells the full story. See the MEX:PSX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Phillips 66 is an independent refiner that owns or holds interest in 10 refineries with a total crude throughput capacity of 2.0 million barrels per day, or mmb/d, at the end of 2025. The midstream segment comprises extensive transportation and NGL processing assets. It includes 70,000 miles of crude oil, refined petroleum product, NGL and natural gas pipeline systems, and a comprehensive set of refined petroleum product, NGL and crude oil terminals, gathering and processing plants and fractionation facilities and various other storage and loading facilities. Its CPChem chemical joint venture operates facilities primarily in the United States and the Middle East and produces olefins and polyolefins.
54GF Score
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