Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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.
SOL SpA's Sloan Ratio for the quarter that ended in Dec. 2025 was 6.50%.
As of Dec. 2025, SOL SpA has a Sloan Ratio of 6.50%, 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 Dec. 2025, SOL SpA has a Sloan Ratio of 6.50%, indicating the company is in the safe zone and there is no funny business with accruals.
SOL SpA Sloan Ratio % Related Terms
SOL SpA Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for SOL SpA'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.
MIL:SOL vs LIN, SHW, ECL: Sloan Ratio % Comparison
For the Specialty Chemicals subindustry, SOL SpA'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.
SOL SpA Sloan Ratio % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, SOL SpA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SOL SpA'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.
SOL SpA's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
SOL SpA's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 83.523 (Jun. 2025 ) + 83.47 (Dec. 2025 ) = €167 Mil.
SOL SpA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 118.154 (Jun. 2025 ) + 178.104 (Dec. 2025 ) = €296 Mil.
SOL SpA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -132.743 (Jun. 2025 ) + -153.929 (Dec. 2025 ) = €-287 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.
SOL SpA (MIL:SOL) has a Sloan Ratio % of 6.50% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on SOL SpA and its competitors.
Is SOL SpA's Sloan Ratio % too high?
SOL SpA's current Sloan Ratio % is 6.50%. Overall, SOL SpA has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SOL SpA's Sloan Ratio % compare to LIN and SHW?
SOL SpA's Sloan Ratio % of 6.50% 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 SOL SpA and its competitors. SOL SpA's current Sloan Ratio % is 6.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SOL SpA stock overvalued right now?
Based on GuruFocus' analysis, SOL SpA (MIL:SOL) is currently considered Significantly Overvalued. The stock's GF Value™ is €42.71, compared to a current price of €56.90 — trading 33.2% above its estimated fair value. The current Sloan Ratio % is 6.50%. SOL SpA's overall GF Score™ is 79/100 with 5 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 SOL SpA (MIL:SOL), the current Sloan Ratio % is 6.50% as of Dec. 2025. 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 SOL SpA (MIL:SOL) Overvalued in 2026?
Based on GuruFocus' analysis, SOL SpA stock appears to be overvalued.
The current stock price of €56.90 is trading 33.2% above its estimated GF Value™ of €42.71.
GuruFocus considers SOL SpA to be Significantly Overvalued.
Key valuation signals for MIL:SOL:
Sloan Ratio %: 6.50%
GF Value™: €42.71 vs. price of €56.90 (33.2% above fair value)
No single metric tells the full story. See the MIL:SOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SOL SpA manufactures and sells industrial gases and medical equipment. The firm's two segments are based on product type. The home-care segment, which generates the majority of revenue, sells a variety of medicinal gases including oxygen, nitrogen, nitrous oxide, carbon dioxide, synthetic air, and medical air. The segment also provides medical air services for hospitals. The technical gases segment sells gas-based products to the energy, agricultural, food, metalworking, glass, and electronics industries. More of SOL's revenue comes from Italy than any other country.
79GF Score
Get the complete analysis for MIL:SOL
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MIL:SOL has been successfully added to your 
