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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 Mar. 2026, Nippon Paint Holdings Co has a Sloan Ratio of -0.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Nippon Paint Holdings Co (OTCPK:NPCPF) 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, Nippon Paint Holdings Co has a Sloan Ratio of -0.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Nippon Paint Holdings Co Sloan Ratio % Related Terms
Nippon Paint Holdings Co 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 Specialty Chemicals subindustry, Nippon Paint Holdings Co'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.
Nippon Paint Holdings Co Sloan Ratio % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Paint Holdings Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nippon Paint Holdings Co's Sloan Ratio % falls into.
Nippon Paint Holdings Co 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.
Nippon Paint Holdings Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Nippon Paint Holdings Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 349.216 (Jun. 2025 ) + 317.064 (Sep. 2025 ) + -54.177 (Dec. 2025 ) + 324.698 (Mar. 2026 ) = $937 Mil.
Nippon Paint Holdings Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 317.005 (Jun. 2025 ) + 369.849 (Sep. 2025 ) + 732.226 (Dec. 2025 ) + 97.389 (Mar. 2026 ) = $1,516 Mil.
Nippon Paint Holdings Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -193.946 (Jun. 2025 ) + -69.186 (Sep. 2025 ) + -137.318 (Dec. 2025 ) + -137.602 (Mar. 2026 ) = $-538 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.
Nippon Paint Holdings Co (NPCPF) has a Sloan Ratio % of -0.16% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Nippon Paint Holdings Co and its competitors.
Is Nippon Paint Holdings Co's Sloan Ratio % too high?
Nippon Paint Holdings Co's current Sloan Ratio % is -0.16%. Overall, Nippon Paint Holdings Co has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Paint Holdings Co's Sloan Ratio % compare to LIN and SHW?
Nippon Paint Holdings Co's Sloan Ratio % of -0.16% can be compared against companies in the Chemicals 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 Chemicals company?
A good Sloan Ratio % depends on the Chemicals 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 Nippon Paint Holdings Co and its competitors. Nippon Paint Holdings Co's current Sloan Ratio % is -0.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Paint Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Paint Holdings Co (NPCPF) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.11, compared to a current price of $6.69 — trading 17.5% below its estimated fair value. The current Sloan Ratio % is -0.16%. Nippon Paint Holdings Co's overall GF Score™ is 87/100 with 3 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 Nippon Paint Holdings Co (NPCPF), the current Sloan Ratio % is -0.16% 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 Nippon Paint Holdings Co (NPCPF) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Paint Holdings Co stock appears to be undervalued.
The current stock price of $6.69 is trading 17.5% below its estimated GF Value™ of $8.11.
GuruFocus considers Nippon Paint Holdings Co to be Modestly Undervalued.
Key valuation signals for NPCPF:
Sloan Ratio %: -0.16%
GF Value™: $8.11 vs. price of $6.69 (17.5% below fair value)
No single metric tells the full story. See the NPCPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Paint is a global paint company with operations in over 50 countries. About two-thirds of sales are in decorative paint, serving mostly residential and some commercial customers. It has the dominant share of the paint markets in China and some smaller Asian countries, as well as Australia. In other regions, it's often one of the three largest players. Its products are distributed via paint and home improvement retailers, some 300,000 distributors globally. Household brands include Nipsea, Nippon Paint, Dulux (in Asia, the Pacific, and Europe), British Paints, Betek Boya, and Alina, among others. About one-fourth of sales are in industrial coatings and paints. Here, customer groups include manufacturers of automotive and industrial products.
87GF Score
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