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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.
As of Sep. 2025, Sapiens International NV has a Sloan Ratio of 8.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Sapiens International NV (NAS:SPNS) 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 Sep. 2025, Sapiens International NV has a Sloan Ratio of 8.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Sapiens International NV Sloan Ratio % Related Terms
Sapiens International NV Sloan Ratio % Historical Data
* 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 Software - Application subindustry, Sapiens International NV'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.
Sapiens International NV Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, Sapiens International NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sapiens International NV's Sloan Ratio % falls into.
Sapiens International NV Sloan Ratio % Calculation
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.
Sapiens International NV's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Sapiens International NV's Net Income for the trailing twelve months (TTM) ended in Sep. 2025 was 17.867 (Dec. 2024 ) + 17.936 (Mar. 2025 ) + 14.232 (Jun. 2025 ) + 14.3 (Sep. 2025 ) = $64.3 Mil.
Sapiens International NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2025 was 42.109 (Dec. 2024 ) + 25.353 (Mar. 2025 ) + 1.873 (Jun. 2025 ) + 10.643 (Sep. 2025 ) = $80.0 Mil.
Sapiens International NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2025 was -14.946 (Dec. 2024 ) + -28.729 (Mar. 2025 ) + -40.172 (Jun. 2025 ) + 7.339 (Sep. 2025 ) = $-76.5 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.
Sapiens International NV (SPNS) has a Sloan Ratio % of 8.18% as of Sep. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Sapiens International NV and its competitors.
Is Sapiens International NV's Sloan Ratio % too high?
Sapiens International NV's current Sloan Ratio % is 8.18%. Overall, Sapiens International NV has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Sapiens International NV's Sloan Ratio % compare to ALKT and VIA?
Sapiens International NV's Sloan Ratio % of 8.18% can be compared against companies in the Software 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 Software company?
A good Sloan Ratio % depends on the Software 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 Sapiens International NV and its competitors. Sapiens International NV's current Sloan Ratio % is 8.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sapiens International NV stock overvalued right now?
Sapiens International NV (SPNS) has a current Sloan Ratio % of 8.18%. The stock's GF Value™ is $31.47, compared to a current price of $43.45 — trading 38.1% above its estimated fair value. The current Sloan Ratio % is 8.18%. Sapiens International NV's overall GF Score™ is 75/100 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 Sapiens International NV (SPNS), the current Sloan Ratio % is 8.18% as of Sep. 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 Sapiens International NV (SPNS) Overvalued in 2026?
Based on GuruFocus' analysis, Sapiens International NV stock appears to be overvalued.
The current stock price of $43.45 is trading 38.1% above its estimated GF Value™ of $31.47.
Key valuation signals for SPNS:
Sloan Ratio %: 8.18%
GF Value™: $31.47 vs. price of $43.45 (38.1% above fair value)
No single metric tells the full story. See the SPNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sapiens International Corp NV is a provider of software solutions for the insurance industry, with an emerging focus on the financial services sector. The company offers software, solutions, and professional services for property & casualty (P&C); reinsurance; life, pension & annuity (L&A); workers' compensation (WC); medical professional liability (MPL); financial & compliance (F&C); and decision modeling for both insurance and financial markets. The group also provides services for project delivery and implementation services, for its Software Solutions portfolio. Geographically, it operates in the region of North America, Rest of the World, and Europe. It generates revenue from Europe.
75GF Score
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