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.
Outokumpu Oyj's Sloan Ratio for the quarter that ended in Mar. 2026 was -3.00%.
As of Mar. 2026, Outokumpu Oyj has a Sloan Ratio of -3.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Outokumpu Oyj (OTCPK:OUTFF) 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, Outokumpu Oyj has a Sloan Ratio of -3.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Outokumpu Oyj Sloan Ratio % Related Terms
Outokumpu Oyj Sloan Ratio % Historical Data
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The historical data trend for Outokumpu Oyj'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 Steel subindustry, Outokumpu Oyj'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.
Outokumpu Oyj Sloan Ratio % vs Steel Industry
For the Steel industry and Basic Materials sector, Outokumpu Oyj's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Outokumpu Oyj'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.
Outokumpu Oyj's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Outokumpu Oyj's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -21.915 (Jun. 2025 ) + -41.08 (Sep. 2025 ) + -76.112 (Dec. 2025 ) + -6.936 (Mar. 2026 ) = $-146 Mil.
Outokumpu Oyj's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 59.977 (Jun. 2025 ) + -32.864 (Sep. 2025 ) + 74.941 (Dec. 2025 ) + 98.266 (Mar. 2026 ) = $200 Mil.
Outokumpu Oyj's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -35.755 (Jun. 2025 ) + -31.69 (Sep. 2025 ) + -17.564 (Dec. 2025 ) + -58.96 (Mar. 2026 ) = $-144 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.
Outokumpu Oyj (OUTFF) has a Sloan Ratio % of -3.00% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Outokumpu Oyj and its competitors.
Is Outokumpu Oyj's Sloan Ratio % too high?
Outokumpu Oyj's current Sloan Ratio % is -3.00%. Overall, Outokumpu Oyj has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Outokumpu Oyj's Sloan Ratio % compare to NUE and STLD?
Outokumpu Oyj's Sloan Ratio % of -3.00% can be compared against companies in the Steel 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 Steel company?
A good Sloan Ratio % depends on the Steel 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 Outokumpu Oyj and its competitors. Outokumpu Oyj's current Sloan Ratio % is -3.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Outokumpu Oyj stock overvalued right now?
Based on GuruFocus' analysis, Outokumpu Oyj (OUTFF) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.42, compared to a current price of $5.74 — trading 67.8% above its estimated fair value. The current Sloan Ratio % is -3.00%. Outokumpu Oyj's overall GF Score™ is 65/100 with 6 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 Outokumpu Oyj (OUTFF), the current Sloan Ratio % is -3.00% 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 Outokumpu Oyj (OUTFF) Overvalued in 2026?
Based on GuruFocus' analysis, Outokumpu Oyj stock appears to be overvalued.
The current stock price of $5.74 is trading 67.8% above its estimated GF Value™ of $3.42.
GuruFocus considers Outokumpu Oyj to be Significantly Overvalued.
Key valuation signals for OUTFF:
Sloan Ratio %: -3.00%
GF Value™: $3.42 vs. price of $5.74 (67.8% above fair value)
No single metric tells the full story. See the OUTFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Outokumpu Oyj is a steel and alloys maker. Its business is divided into three business areas, which are Europe, the Americas, and Ferrochrome. Europe derives the key revenue, which consists of both coil and plate operations. The high-volume and tailored standard stainless-steel grades are used, for example, in architecture, building and construction, transportation, catering and appliances, chemical, petrochemical and energy sectors, as well as other process industries. The Americas produces standard austenitic and ferritic grades as well as tailored products. Ferrochrome produces charge grade of ferrochrome and runs the chrome mine in Kemi and the ferrochrome smelter in Tornio, Finland. The company generates the majority of its revenue from Europe.
65GF Score
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