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.
IES Holdings's Sloan Ratio for the quarter that ended in Mar. 2026 was 15.70%.
As of Mar. 2026, IES Holdings has a Sloan Ratio of 15.70%, indicating there is a warning stage of accrual build up.
IES Holdings (NAS:IESC) 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, IES Holdings has a Sloan Ratio of 15.70%, indicating there is a warning stage of accrual build up.
IES Holdings Sloan Ratio % Related Terms
IES Holdings Sloan Ratio % Historical Data
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The historical data trend for IES Holdings'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 Engineering & Construction subindustry, IES Holdings'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.
IES Holdings Sloan Ratio % vs Construction Industry
For the Construction industry and Industrials sector, IES Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where IES Holdings'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.
IES Holdings's Sloan Ratio for the fiscal year that ended in Sep. 2025 is calculated as
IES Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 77.23 (Jun. 2025 ) + 101.79 (Sep. 2025 ) + 91.439 (Dec. 2025 ) + 109.909 (Mar. 2026 ) = $380 Mil.
IES Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 91.991 (Jun. 2025 ) + 132.001 (Sep. 2025 ) + 27.701 (Dec. 2025 ) + 103.286 (Mar. 2026 ) = $355 Mil.
IES Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -16.995 (Jun. 2025 ) + -49.589 (Sep. 2025 ) + -46.236 (Dec. 2025 ) + -174.893 (Mar. 2026 ) = $-288 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.
IES Holdings (IESC) has a Sloan Ratio % of 15.70% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on IES Holdings and its competitors.
Is IES Holdings' Sloan Ratio % too high?
IES Holdings' current Sloan Ratio % is 15.70%. Overall, IES Holdings has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IES Holdings' Sloan Ratio % compare to DY and J?
IES Holdings' Sloan Ratio % of 15.70% can be compared against companies in the Construction 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 Construction company?
A good Sloan Ratio % depends on the Construction 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 IES Holdings and its competitors. IES Holdings's current Sloan Ratio % is 15.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IES Holdings stock overvalued right now?
Based on GuruFocus' analysis, IES Holdings (IESC) is currently considered Significantly Overvalued. The stock's GF Value™ is $262.98, compared to a current price of $653.83 — trading 148.6% above its estimated fair value. The current Sloan Ratio % is 15.70%. IES Holdings' overall GF Score™ is 85/100 with 1 warning sign 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 IES Holdings (IESC), the current Sloan Ratio % is 15.70% 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 IES Holdings (IESC) Overvalued in 2026?
Based on GuruFocus' analysis, IES Holdings stock appears to be overvalued.
The current stock price of $653.83 is trading 148.6% above its estimated GF Value™ of $262.98.
GuruFocus considers IES Holdings to be Significantly Overvalued.
Key valuation signals for IESC:
Sloan Ratio %: 15.70%
GF Value™: $262.98 vs. price of $653.83 (148.6% above fair value)
No single metric tells the full story. See the IESC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IES Holdings Inc owns and manages subsidiaries that design and installs integrated electrical and technology systems and provide infrastructure products and services. It has four business segments; Communications, Residential, Infrastructure Solutions, and Commercial & Industrial. The majority of the revenue for the company is generated from its Residential segment in which the company provides electrical installation services for single-family housing and multi-family apartment complexes, as well as heating, ventilation, and air conditioning (HVAC) and plumbing installation services. This segment also provides services for installing residential solar power, both for new construction and existing residences.
85GF Score
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