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.
Pembina Pipeline's Sloan Ratio for the quarter that ended in Mar. 2026 was 0.62%.
As of Mar. 2026, Pembina Pipeline has a Sloan Ratio of 0.62%, indicating the company is in the safe zone and there is no funny business with accruals.
Pembina Pipeline (NYSE:PBA) 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, Pembina Pipeline has a Sloan Ratio of 0.62%, indicating the company is in the safe zone and there is no funny business with accruals.
Pembina Pipeline Sloan Ratio % Related Terms
Pembina Pipeline Sloan Ratio % Historical Data
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The historical data trend for Pembina Pipeline'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 Oil & Gas Midstream subindustry, Pembina Pipeline'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.
Pembina Pipeline Sloan Ratio % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Pembina Pipeline's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pembina Pipeline'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.
Pembina Pipeline's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Pembina Pipeline's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 305.092 (Jun. 2025 ) + 206.737 (Sep. 2025 ) + 354.476 (Dec. 2025 ) + 362.974 (Mar. 2026 ) = $1,229 Mil.
Pembina Pipeline's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 577.992 (Jun. 2025 ) + 585.514 (Sep. 2025 ) + 624.139 (Dec. 2025 ) + 244.169 (Mar. 2026 ) = $2,032 Mil.
Pembina Pipeline's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -249.488 (Jun. 2025 ) + -212.52 (Sep. 2025 ) + -197.898 (Dec. 2025 ) + -306.122 (Mar. 2026 ) = $-966 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.
Pembina Pipeline (PBA) has a Sloan Ratio % of 0.62% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Pembina Pipeline and its competitors.
Is Pembina Pipeline's Sloan Ratio % too high?
Pembina Pipeline's current Sloan Ratio % is 0.62%. Overall, Pembina Pipeline has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pembina Pipeline's Sloan Ratio % compare to WMB and EPD?
Pembina Pipeline's Sloan Ratio % of 0.62% can be compared against companies in the Oil & Gas 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 an Oil & Gas company?
A good Sloan Ratio % depends on the Oil & Gas 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 Pembina Pipeline and its competitors. Pembina Pipeline's current Sloan Ratio % is 0.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pembina Pipeline stock overvalued right now?
Based on GuruFocus' analysis, Pembina Pipeline (PBA) is currently considered Modestly Overvalued. The stock's GF Value™ is $39.47, compared to a current price of $49.00 — trading 24.1% above its estimated fair value. The current Sloan Ratio % is 0.62%. Pembina Pipeline's overall GF Score™ is 65/100 with 9 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 Pembina Pipeline (PBA), the current Sloan Ratio % is 0.62% 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 Pembina Pipeline (PBA) Overvalued in 2026?
Based on GuruFocus' analysis, Pembina Pipeline stock appears to be overvalued.
The current stock price of $49.00 is trading 24.1% above its estimated GF Value™ of $39.47.
GuruFocus considers Pembina Pipeline to be Modestly Overvalued.
Key valuation signals for PBA:
Sloan Ratio %: 0.62%
GF Value™: $39.47 vs. price of $49.00 (24.1% above fair value)
No single metric tells the full story. See the PBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pembina Pipeline is a midstream company serving the Canadian and North American (primarily Bakken) markets with an integrated product portfolio. Its operations include transmission pipelines, oil and gas gathering, fractionation, storage, and natural gas liquid exports. It also has a joint venture through the Cedar LNG export terminal.
65GF Score
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