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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.
Midea Group Co's Sloan Ratio for the quarter that ended in Jun. 2026 was -1.59%.
As of Jun. 2026, Midea Group Co has a Sloan Ratio of -1.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Midea Group Co (OTCPK:MGCLY) 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, Midea Group Co has a Sloan Ratio of -1.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Midea Group Co Sloan Ratio % Related Terms
Midea Group Co Sloan Ratio % Historical Data
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The historical data trend for Midea Group Co'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 Furnishings, Fixtures & Appliances subindustry, Midea Group Co'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.
Midea Group Co Sloan Ratio % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Midea Group Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Midea Group Co'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.
Midea Group Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Midea Group Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 1666.273 (Sep. 2025 ) + 860.692 (Dec. 2025 ) + 1838.998 (Mar. 2026 ) + 2032.451 (Jun. 2026 ) = $6,398 Mil.
Midea Group Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 2777.437 (Sep. 2025 ) + -528.191 (Dec. 2025 ) + 2108.09 (Mar. 2026 ) + 3397.816 (Jun. 2026 ) = $7,755 Mil.
Midea Group Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 1586.433 (Sep. 2025 ) + 921.303 (Dec. 2025 ) + 744.449 (Mar. 2026 ) + -3099.754 (Jun. 2026 ) = $152 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.
Midea Group Co (MGCLY) has a Sloan Ratio % of -1.59% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Midea Group Co and its competitors.
Is Midea Group Co's Sloan Ratio % too high?
Midea Group Co's current Sloan Ratio % is -1.59%. Overall, Midea Group Co has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Midea Group Co's Sloan Ratio % compare to SN and SGI?
Midea Group Co's Sloan Ratio % of -1.59% can be compared against companies in the Furnishings, Fixtures & Appliances 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 Furnishings, Fixtures & Appliances company?
A good Sloan Ratio % depends on the Furnishings, Fixtures & Appliances 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 Midea Group Co and its competitors. Midea Group Co's current Sloan Ratio % is -1.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Midea Group Co stock overvalued right now?
Based on GuruFocus' analysis, Midea Group Co (MGCLY) is currently considered Modestly Overvalued. The stock's GF Value™ is $10.92, compared to a current price of $12.76 — trading 16.8% above its estimated fair value. The current Sloan Ratio % is -1.59%. Midea Group Co's overall GF Score™ is 70/100 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 Midea Group Co (MGCLY), the current Sloan Ratio % is -1.59% 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 Midea Group Co (MGCLY) Overvalued in 2026?
Based on GuruFocus' analysis, Midea Group Co stock appears to be overvalued.
The current stock price of $12.76 is trading 16.8% above its estimated GF Value™ of $10.92.
GuruFocus considers Midea Group Co to be Modestly Overvalued.
Key valuation signals for MGCLY:
Sloan Ratio %: -1.59%
GF Value™: $10.92 vs. price of $12.76 (16.8% above fair value)
No single metric tells the full story. See the MGCLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Midea Group Co., Ltd. is one of the largest household appliance manufacturers in China, with key products such as air conditioners, refrigerators, washing machines and small household appliances. It is consistently ranked as one of the top three players in China by retail sales in most home appliance categories. The firm also engages in industrial automation and robotics systems through wholly owned Kuka, a global market leader based in Germany. Heating, ventilation, and air conditioning, or HVAC, products contribute the most to Midea's revenue, followed by other consumer appliances, and robotics and automation systems. In addition, Midea generates around 40% of sales outside of China.
70GF Score
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