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 Feb. 2026, Centro Escolar University has a Sloan Ratio of -1.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Centro Escolar University (PHS:CEU) 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 Feb. 2026, Centro Escolar University has a Sloan Ratio of -1.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Centro Escolar University Sloan Ratio % Related Terms
Centro Escolar University 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.
PHS:CEU vs EDU, TAL, LAUR: Sloan Ratio % Comparison
For the Education & Training Services subindustry, Centro Escolar University'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.
Centro Escolar University Sloan Ratio % vs Education Industry
For the Education industry and Consumer Defensive sector, Centro Escolar University's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Centro Escolar University's Sloan Ratio % falls into.
Centro Escolar University 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.
Centro Escolar University's Sloan Ratio for the fiscal year that ended in May. 2025 is calculated as
Centro Escolar University's Net Income for the trailing twelve months (TTM) ended in Feb. 2026 was 127.546 (May. 2025 ) + 28.873 (Aug. 2025 ) + 251.193 (Nov. 2025 ) + 257.43 (Feb. 2026 ) = ₱665 Mil.
Centro Escolar University's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2026 was 288.267 (May. 2025 ) + 308.37 (Aug. 2025 ) + -52.673 (Nov. 2025 ) + 396.479 (Feb. 2026 ) = ₱940 Mil.
Centro Escolar University's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2026 was -55.18 (May. 2025 ) + -21.788 (Aug. 2025 ) + -20.907 (Nov. 2025 ) + -58.192 (Feb. 2026 ) = ₱-156 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.
Centro Escolar University (PHS:CEU) has a Sloan Ratio % of -1.22% as of Feb. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Centro Escolar University and its competitors.
Is Centro Escolar University's Sloan Ratio % too high?
Centro Escolar University's current Sloan Ratio % is -1.22%. Overall, Centro Escolar University has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Centro Escolar University's Sloan Ratio % compare to EDU and TAL?
Centro Escolar University's Sloan Ratio % of -1.22% can be compared against companies in the Education 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 Education company?
A good Sloan Ratio % depends on the Education 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 Centro Escolar University and its competitors. Centro Escolar University's current Sloan Ratio % is -1.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Centro Escolar University stock overvalued right now?
Based on GuruFocus' analysis, Centro Escolar University (PHS:CEU) is currently considered Fairly Valued. The stock's GF Value™ is ₱14.47, compared to a current price of ₱15.18 — trading 4.9% above its estimated fair value. The current Sloan Ratio % is -1.22%. Centro Escolar University's overall GF Score™ is 72/100 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 Centro Escolar University (PHS:CEU), the current Sloan Ratio % is -1.22% as of Feb. 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 Centro Escolar University (PHS:CEU) Overvalued in 2026?
Based on GuruFocus' analysis, Centro Escolar University stock appears to be overvalued.
The current stock price of ₱15.18 is trading 4.9% above its estimated GF Value™ of ₱14.47.
GuruFocus considers Centro Escolar University to be Fairly Valued.
Key valuation signals for PHS:CEU:
Sloan Ratio %: -1.22%
GF Value™: ₱14.47 vs. price of ₱15.18 (4.9% above fair value)
No single metric tells the full story. See the PHS:CEU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Centro Escolar University is a Philippines-based institution of higher learning. The company is engaged in establishing, maintaining, and operating an educational institution for the training of the youth in all branches of the arts and sciences, offering classes at the tertiary level. The University operates in four geographical segments, such as Mendiola, Malolos, Makati-Gil Puyat, and Makati Legaspi campus.
72GF Score
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