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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.
Sutro Biopharma's Sloan Ratio for the quarter that ended in Jun. 2026 was -35.10%.
Warning Sign:
When sloan ratio (-33.87)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2026, Sutro Biopharma has a Sloan Ratio of -35.10%, indicating earnings are more likely to be made up of accruals.
Sutro Biopharma (NAS:STRO) 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, Sutro Biopharma has a Sloan Ratio of -35.10%, indicating earnings are more likely to be made up of accruals.
Sutro Biopharma Sloan Ratio % Related Terms
Sutro Biopharma Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Sutro Biopharma'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.
STRO vs AVIR, IPSC, CCCC: Sloan Ratio % Comparison
For the Biotechnology subindustry, Sutro Biopharma'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.
Sutro Biopharma Sloan Ratio % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sutro Biopharma's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sutro Biopharma'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.
Sutro Biopharma's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Sutro Biopharma's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was -56.857 (Sep. 2025 ) + -46.762 (Dec. 2025 ) + -38.484 (Mar. 2026 ) + -38.533 (Jun. 2026 ) = $-180.64 Mil.
Sutro Biopharma's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was -38.189 (Sep. 2025 ) + -26.435 (Dec. 2025 ) + -42.259 (Mar. 2026 ) + -38.29 (Jun. 2026 ) = $-145.17 Mil.
Sutro Biopharma's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 39.989 (Sep. 2025 ) + 18.702 (Dec. 2025 ) + -45.264 (Mar. 2026 ) + 19.361 (Jun. 2026 ) = $32.79 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.
Sutro Biopharma (STRO) has a Sloan Ratio % of -35.10% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Sutro Biopharma and its competitors.
Is Sutro Biopharma's Sloan Ratio % too high?
Sutro Biopharma's current Sloan Ratio % is -35.10%. Overall, Sutro Biopharma has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sutro Biopharma's Sloan Ratio % compare to AVIR and IPSC?
Sutro Biopharma's Sloan Ratio % of -35.10% can be compared against companies in the Biotechnology 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 Biotechnology company?
A good Sloan Ratio % depends on the Biotechnology 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 Sutro Biopharma and its competitors. Sutro Biopharma's current Sloan Ratio % is -35.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sutro Biopharma stock overvalued right now?
Based on GuruFocus' analysis, Sutro Biopharma (STRO) is currently considered Significantly Overvalued. The stock's GF Value™ is $5.50, compared to a current price of $20.46 — trading 272% above its estimated fair value. The current Sloan Ratio % is -35.10%. Sutro Biopharma's overall GF Score™ is 45/100 with 4 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 Sutro Biopharma (STRO), the current Sloan Ratio % is -35.10% 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 Sutro Biopharma (STRO) Overvalued in 2026?
Based on GuruFocus' analysis, Sutro Biopharma stock appears to be overvalued.
The current stock price of $20.46 is trading 272% above its estimated GF Value™ of $5.50.
GuruFocus considers Sutro Biopharma to be Significantly Overvalued.
Key valuation signals for STRO:
Sloan Ratio %: -35.10%
GF Value™: $5.50 vs. price of $20.46 (272% above fair value)
No single metric tells the full story. See the STRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sutro Biopharma Inc is a clinical-stage drug discovery, development, and manufacturing company. The company manufactures next-generation protein therapeutics for cancer and autoimmune disorders through its proprietary integrated cell-free protein synthesis platform, XpressCF. Products offered by the company include STRO-001 for patients with multiple myeloma and lymphoma and STRO-002 for the treatment of ovarian and endometrial cancers. Company's wholly-owned product candidate is STRO-004, a single homogeneous ADC directed against tissue factor which are developing for the treatment of solid tumors. The company also pipeline contains STRO-006, STRO-00X, STRO-00Y, STRO-003, VAX24, VAX31, and Others.
45GF Score
Get the complete analysis for STRO
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