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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.
Herfy Food Services Co's Sloan Ratio for the quarter that ended in Jun. 2026 was -13.76%.
As of Jun. 2026, Herfy Food Services Co has a Sloan Ratio of -13.76%, indicating there is a warning stage of accrual build up.
Herfy Food Services Co (SAU:6002) 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 Jun. 2026, Herfy Food Services Co has a Sloan Ratio of -13.76%, indicating there is a warning stage of accrual build up.
Herfy Food Services Co Sloan Ratio % Related Terms
Herfy Food Services Co 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.
SAU:6002 vs MCD, SBUX, CMG: Sloan Ratio % Comparison
For the Restaurants subindustry, Herfy Food Services Co'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.
Herfy Food Services Co Sloan Ratio % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Herfy Food Services Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Herfy Food Services Co'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.
Herfy Food Services Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Herfy Food Services Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was -48.125 (Sep. 2025 ) + -11.656 (Dec. 2025 ) + -3.908 (Mar. 2026 ) + 2.963 (Jun. 2026 ) = ﷼-61 Mil.
Herfy Food Services Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 34.673 (Sep. 2025 ) + 38.032 (Dec. 2025 ) + 24.927 (Mar. 2026 ) + 61.168 (Jun. 2026 ) = ﷼159 Mil.
Herfy Food Services Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -4.081 (Sep. 2025 ) + -2.315 (Dec. 2025 ) + -0.455 (Mar. 2026 ) + -1.837 (Jun. 2026 ) = ﷼-9 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.
Herfy Food Services Co (SAU:6002) has a Sloan Ratio % of -13.76% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Herfy Food Services Co and its competitors.
Is Herfy Food Services Co's Sloan Ratio % too high?
Herfy Food Services Co's current Sloan Ratio % is -13.76%. Overall, Herfy Food Services Co has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Herfy Food Services Co's Sloan Ratio % compare to MCD and SBUX?
Herfy Food Services Co's Sloan Ratio % of -13.76% can be compared against companies in the Restaurants 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 Restaurants company?
A good Sloan Ratio % depends on the Restaurants 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 Herfy Food Services Co and its competitors. Herfy Food Services Co's current Sloan Ratio % is -13.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Herfy Food Services Co stock overvalued right now?
Based on GuruFocus' analysis, Herfy Food Services Co (SAU:6002) is currently considered Possible Value Trap. The stock's GF Value™ is ﷼22.85, compared to a current price of ﷼15.76 — trading 31% below its estimated fair value. The current Sloan Ratio % is -13.76%. Herfy Food Services Co's overall GF Score™ is 74/100 with 4 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 Herfy Food Services Co (SAU:6002), the current Sloan Ratio % is -13.76% as of Jun. 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 Herfy Food Services Co (SAU:6002) Overvalued in 2026?
Based on GuruFocus' analysis, Herfy Food Services Co stock appears to be undervalued.
The current stock price of ﷼15.76 is trading 31% below its estimated GF Value™ of ﷼22.85.
GuruFocus considers Herfy Food Services Co to be Possible Value Trap.
Key valuation signals for SAU:6002:
Sloan Ratio %: -13.76%
GF Value™: ﷼22.85 vs. price of ﷼15.76 (31% below fair value)
No single metric tells the full story. See the SAU:6002 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Herfy Food Services Co establishes, operates, and franchises restaurants in the Kingdom of Saudi Arabia. The Company is engaged in establishing and operating restaurants, providing companies and others with cooked meals, production and sale of bakery and pastry products, the sale and purchase of lands for the purpose of constructing buildings and own use, maintaining, and leasing stores and food store fridges. The Company operates in three business segments: Restaurants and catering, Meat Factory, Bakeries, and others. Restaurants, which derive the maximum revenue, are involved in providing catering services, operating restaurants, and renting out investment properties.
74GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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