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.
Palladyne AI's Sloan Ratio for the quarter that ended in Mar. 2026 was -1.35%.
Warning Sign:
When sloan ratio (65.04)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2026, Palladyne AI has a Sloan Ratio of -1.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Palladyne AI (NAS:PDYN) 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, Palladyne AI has a Sloan Ratio of -1.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Palladyne AI Sloan Ratio % Related Terms
Palladyne AI Sloan Ratio % Historical Data
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The historical data trend for Palladyne AI'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.
PDYN vs ZPTA, DVLT, RPAY: Sloan Ratio % Comparison
For the Software - Infrastructure subindustry, Palladyne AI'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.
Palladyne AI Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, Palladyne AI's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Palladyne AI'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.
Palladyne AI's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Palladyne AI's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -7.487 (Jun. 2025 ) + -3.74 (Sep. 2025 ) + -1.493 (Dec. 2025 ) + -12.608 (Mar. 2026 ) = $-25.33 Mil.
Palladyne AI's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was -5.326 (Jun. 2025 ) + -6.29 (Sep. 2025 ) + -8.505 (Dec. 2025 ) + -10.239 (Mar. 2026 ) = $-30.36 Mil.
Palladyne AI's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -5.584 (Jun. 2025 ) + 12.824 (Sep. 2025 ) + -4.273 (Dec. 2025 ) + 3.313 (Mar. 2026 ) = $6.28 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.
Palladyne AI (PDYN) has a Sloan Ratio % of -1.35% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Palladyne AI and its competitors.
Is Palladyne AI's Sloan Ratio % too high?
Palladyne AI's current Sloan Ratio % is -1.35%. Overall, Palladyne AI has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palladyne AI's Sloan Ratio % compare to ZPTA and DVLT?
Palladyne AI's Sloan Ratio % of -1.35% can be compared against companies in the Software 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 Software company?
A good Sloan Ratio % depends on the Software 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 Palladyne AI and its competitors. Palladyne AI's current Sloan Ratio % is -1.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palladyne AI stock overvalued right now?
Based on GuruFocus' analysis, Palladyne AI (PDYN) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.58, compared to a current price of $5.68 — trading 259.2% above its estimated fair value. The current Sloan Ratio % is -1.35%. Palladyne AI's overall GF Score™ is 57/100 with 7 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 Palladyne AI (PDYN), the current Sloan Ratio % is -1.35% 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 Palladyne AI (PDYN) Overvalued in 2026?
Based on GuruFocus' analysis, Palladyne AI stock appears to be overvalued.
The current stock price of $5.68 is trading 259.2% above its estimated GF Value™ of $1.58.
GuruFocus considers Palladyne AI to be Significantly Overvalued.
Key valuation signals for PDYN:
Sloan Ratio %: -1.35%
GF Value™: $1.58 vs. price of $5.68 (259.2% above fair value)
No single metric tells the full story. See the PDYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palladyne AI Corp is a software company focused on autonomy for robotic systems and solutions. Its artificial intelligence and machine learning software seeks to revolutionize the capabilities of robots, enabling them to observe, learn, reason, and act in structured and unstructured environments. AI and ML software platform of the company empowers robots to perceive variations or changes in the real-world environment, enabling them to autonomously maneuver and manipulate objects accurately in response. Palladyne AI software has wide application, including in industries such as automotive, aviation, construction, defense, general manufacturing, infrastructure inspection, logistics and warehousing.
57GF Score
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