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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.
Pharma-Bio Serv's Sloan Ratio for the quarter that ended in Apr. 2026 was -11.75%.
As of Apr. 2026, Pharma-Bio Serv has a Sloan Ratio of -11.75%, indicating there is a warning stage of accrual build up.
Pharma-Bio Serv (OTCPK:PBSV) 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 Apr. 2026, Pharma-Bio Serv has a Sloan Ratio of -11.75%, indicating there is a warning stage of accrual build up.
Pharma-Bio Serv Sloan Ratio % Related Terms
Pharma-Bio Serv Sloan Ratio % Historical Data
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The historical data trend for Pharma-Bio Serv'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.
PBSV vs HCTI, BFRG, MGRX: Sloan Ratio % Comparison
For the Health Information Services subindustry, Pharma-Bio Serv'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.
Pharma-Bio Serv Sloan Ratio % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Pharma-Bio Serv's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pharma-Bio Serv'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.
Pharma-Bio Serv's Sloan Ratio for the fiscal year that ended in Oct. 2025 is calculated as
Pharma-Bio Serv's Net Income for the trailing twelve months (TTM) ended in Apr. 2026 was -0.20425 (Jul. 2025 ) + -0.000102 (Oct. 2025 ) + 0.03286 (Jan. 2026 ) + 0.232986 (Apr. 2026 ) = $0.06 Mil.
Pharma-Bio Serv's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was 0.236524 (Jul. 2025 ) + 0.279666 (Oct. 2025 ) + -0.390139 (Jan. 2026 ) + -0.365311 (Apr. 2026 ) = $-0.24 Mil.
Pharma-Bio Serv's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2026 was 1.62878 (Jul. 2025 ) + -0.856665 (Oct. 2025 ) + 2.766744 (Jan. 2026 ) + -1.887131 (Apr. 2026 ) = $1.65 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.
Pharma-Bio Serv (PBSV) has a Sloan Ratio % of -11.75% as of Apr. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Pharma-Bio Serv and its competitors.
Is Pharma-Bio Serv's Sloan Ratio % too high?
Pharma-Bio Serv's current Sloan Ratio % is -11.75%. Overall, Pharma-Bio Serv has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Pharma-Bio Serv's Sloan Ratio % compare to HCTI and BFRG?
Pharma-Bio Serv's Sloan Ratio % of -11.75% can be compared against companies in the Healthcare Providers & Services 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 Healthcare Providers & Services company?
A good Sloan Ratio % depends on the Healthcare Providers & Services 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 Pharma-Bio Serv and its competitors. Pharma-Bio Serv's current Sloan Ratio % is -11.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pharma-Bio Serv stock overvalued right now?
Based on GuruFocus' analysis, Pharma-Bio Serv (PBSV) is currently considered Possible Value Trap. The stock's GF Value™ is $0.61, compared to a current price of $0.40 — trading 34.4% below its estimated fair value. The current Sloan Ratio % is -11.75%. Pharma-Bio Serv's overall GF Score™ is 45/100 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 Pharma-Bio Serv (PBSV), the current Sloan Ratio % is -11.75% as of Apr. 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 Pharma-Bio Serv (PBSV) Overvalued in 2026?
Based on GuruFocus' analysis, Pharma-Bio Serv stock appears to be undervalued.
The current stock price of $0.40 is trading 34.4% below its estimated GF Value™ of $0.61.
GuruFocus considers Pharma-Bio Serv to be Possible Value Trap.
Key valuation signals for PBSV:
Sloan Ratio %: -11.75%
GF Value™: $0.61 vs. price of $0.40 (34.4% below fair value)
No single metric tells the full story. See the PBSV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pharma-Bio Serv Inc is a compliance and technology transfer services consulting firm. It also provides microbiological testing services and chemical testing services through its laboratory testing facility in Puerto Rico. It has three reportable segments: Puerto Rico technical compliance consulting which is the key revenue driver; United States technical compliance consulting; and Europe technical compliance consulting. The company offers solutions to the pharmaceutical, chemical, biotechnology, medical devices, cosmetic and food industries, and allied products companies. It generates maximum revenue from Puerto Rico and also has its presence in United States, Europe and Other countries.
45GF Score
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