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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.
Norsk Hydro ASA's Sloan Ratio for the quarter that ended in Jun. 2026 was 1.87%.
As of Jun. 2026, Norsk Hydro ASA has a Sloan Ratio of 1.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Norsk Hydro ASA (OTCPK:NHYKF) 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, Norsk Hydro ASA has a Sloan Ratio of 1.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Norsk Hydro ASA Sloan Ratio % Related Terms
Norsk Hydro ASA Sloan Ratio % Historical Data
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The historical data trend for Norsk Hydro ASA'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 Aluminum subindustry, Norsk Hydro ASA'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.
Norsk Hydro ASA Sloan Ratio % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Norsk Hydro ASA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Norsk Hydro ASA'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.
Norsk Hydro ASA's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Norsk Hydro ASA's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 220.656 (Sep. 2025 ) + -233.801 (Dec. 2025 ) + 438.573 (Mar. 2026 ) + 594.196 (Jun. 2026 ) = $1,020 Mil.
Norsk Hydro ASA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 371.916 (Sep. 2025 ) + 790.846 (Dec. 2025 ) + -195.784 (Mar. 2026 ) + 942.427 (Jun. 2026 ) = $1,909 Mil.
Norsk Hydro ASA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -698.977 (Sep. 2025 ) + -543.787 (Dec. 2025 ) + -98.461 (Mar. 2026 ) + 41.324 (Jun. 2026 ) = $-1,300 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.
Norsk Hydro ASA (NHYKF) has a Sloan Ratio % of 1.87% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Norsk Hydro ASA and its competitors.
Is Norsk Hydro ASA's Sloan Ratio % too high?
Norsk Hydro ASA's current Sloan Ratio % is 1.87%. Overall, Norsk Hydro ASA has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Norsk Hydro ASA's Sloan Ratio % compare to AA and CENX?
Norsk Hydro ASA's Sloan Ratio % of 1.87% can be compared against companies in the Metals & Mining 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 Metals & Mining company?
A good Sloan Ratio % depends on the Metals & Mining 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 Norsk Hydro ASA and its competitors. Norsk Hydro ASA's current Sloan Ratio % is 1.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Norsk Hydro ASA stock overvalued right now?
Based on GuruFocus' analysis, Norsk Hydro ASA (NHYKF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.49, compared to a current price of $9.55 — trading 27.5% above its estimated fair value. The current Sloan Ratio % is 1.87%. Norsk Hydro ASA's overall GF Score™ is 85/100 with 2 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 Norsk Hydro ASA (NHYKF), the current Sloan Ratio % is 1.87% 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 Norsk Hydro ASA (NHYKF) Overvalued in 2026?
Based on GuruFocus' analysis, Norsk Hydro ASA stock appears to be overvalued.
The current stock price of $9.55 is trading 27.5% above its estimated GF Value™ of $7.49.
GuruFocus considers Norsk Hydro ASA to be Significantly Overvalued.
Key valuation signals for NHYKF:
Sloan Ratio %: 1.87%
GF Value™: $7.49 vs. price of $9.55 (27.5% above fair value)
No single metric tells the full story. See the NHYKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Norsk Hydro ASA is an aluminium and renewable energy company. The company owns and operates businesses and holds investments in sustainable industries. Its operations span multiple market segments, including aluminum, energy, metal recycling, renewable energy, and batteries, providing expertise across these areas. The company's reportable segments are Hydro Bauxite & Alumina, Hydro Energy, Hydro Aluminium Metal and Hydro Extrusions and Hydro Metal Markets activities. The majority of the company's revenue is derived from the Hydro Extrusions segment, which delivers products within extruded profiles, building systems and precision tubing, and operates several recycling facilities, both integrated with its extrusion plants and separate plants.
85GF Score
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