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.
Five Star Bancorp's Sloan Ratio for the quarter that ended in Mar. 2026 was 11.73%.
As of Mar. 2026, Five Star Bancorp has a Sloan Ratio of 11.73%, indicating there is a warning stage of accrual build up.
Five Star Bancorp (NAS:FSBC) 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, Five Star Bancorp has a Sloan Ratio of 11.73%, indicating there is a warning stage of accrual build up.
Five Star Bancorp Sloan Ratio % Related Terms
Five Star Bancorp Sloan Ratio % Historical Data
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The historical data trend for Five Star Bancorp'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 Banks - Regional subindustry, Five Star Bancorp'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.
Five Star Bancorp Sloan Ratio % vs Banks Industry
For the Banks industry and Financial Services sector, Five Star Bancorp's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Five Star Bancorp'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.
Five Star Bancorp's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Five Star Bancorp's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 14.508 (Jun. 2025 ) + 16.344 (Sep. 2025 ) + 17.643 (Dec. 2025 ) + 18.621 (Mar. 2026 ) = $67.1 Mil.
Five Star Bancorp's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 17.79 (Jun. 2025 ) + 18.793 (Sep. 2025 ) + 20.557 (Dec. 2025 ) + 18.929 (Mar. 2026 ) = $76.1 Mil.
Five Star Bancorp's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -140.547 (Jun. 2025 ) + -126.698 (Sep. 2025 ) + -187.526 (Dec. 2025 ) + -144.346 (Mar. 2026 ) = $-599.1 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.
Five Star Bancorp (FSBC) has a Sloan Ratio % of 11.73% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Five Star Bancorp and its competitors.
Is Five Star Bancorp's Sloan Ratio % too high?
Five Star Bancorp's current Sloan Ratio % is 11.73%. Overall, Five Star Bancorp has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Five Star Bancorp's Sloan Ratio % compare to ESQ and EQBK?
Five Star Bancorp's Sloan Ratio % of 11.73% can be compared against companies in the Banks 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 Banks company?
A good Sloan Ratio % depends on the Banks 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 Five Star Bancorp and its competitors. Five Star Bancorp's current Sloan Ratio % is 11.73%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Five Star Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Five Star Bancorp (FSBC) is currently considered Modestly Overvalued. The stock's GF Value™ is $37.47, compared to a current price of $48.66 — trading 29.9% above its estimated fair value. The current Sloan Ratio % is 11.73%. Five Star Bancorp's overall GF Score™ is 66/100 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 Five Star Bancorp (FSBC), the current Sloan Ratio % is 11.73% 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 Five Star Bancorp (FSBC) Overvalued in 2026?
Based on GuruFocus' analysis, Five Star Bancorp stock appears to be overvalued.
The current stock price of $48.66 is trading 29.9% above its estimated GF Value™ of $37.47.
GuruFocus considers Five Star Bancorp to be Modestly Overvalued.
Key valuation signals for FSBC:
Sloan Ratio %: 11.73%
GF Value™: $37.47 vs. price of $48.66 (29.9% above fair value)
No single metric tells the full story. See the FSBC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Five Star Bancorp is a bank holding company that operates in California through its subsidiary, a state-chartered non-member bank. The company provides a broad range of banking products and services to small and medium-sized businesses, professionals, and individuals. It offers loan products like commercial real estate loans, commercial loans, commercial land and construction loans, and farmland loans, and offers deposit products like checking accounts, savings accounts, money market accounts, and term certificate accounts. The group has one reportable operating segment: Banking.
66GF Score
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