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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.
Sally Beauty Holdings's Sloan Ratio for the quarter that ended in Jun. 2026 was -1.61%.
As of Jun. 2026, Sally Beauty Holdings has a Sloan Ratio of -1.61%, indicating the company is in the safe zone and there is no funny business with accruals.
Sally Beauty Holdings (NYSE:SBH) 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, Sally Beauty Holdings has a Sloan Ratio of -1.61%, indicating the company is in the safe zone and there is no funny business with accruals.
Sally Beauty Holdings Sloan Ratio % Related Terms
Sally Beauty Holdings Sloan Ratio % Historical Data
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The historical data trend for Sally Beauty Holdings'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 Specialty Retail subindustry, Sally Beauty Holdings'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.
Sally Beauty Holdings Sloan Ratio % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sally Beauty Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sally Beauty Holdings'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.
Sally Beauty Holdings's Sloan Ratio for the fiscal year that ended in Sep. 2025 is calculated as
Sally Beauty Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 49.931 (Sep. 2025 ) + 45.557 (Dec. 2025 ) + 42.695 (Mar. 2026 ) + 54.082 (Jun. 2026 ) = $192 Mil.
Sally Beauty Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 120.879 (Sep. 2025 ) + 93.239 (Dec. 2025 ) + 73.28 (Mar. 2026 ) + 80.942 (Jun. 2026 ) = $368 Mil.
Sally Beauty Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -45.344 (Sep. 2025 ) + -35.784 (Dec. 2025 ) + -29.162 (Mar. 2026 ) + -19.311 (Jun. 2026 ) = $-130 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.
Sally Beauty Holdings (SBH) has a Sloan Ratio % of -1.61% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Sally Beauty Holdings and its competitors.
Is Sally Beauty Holdings' Sloan Ratio % too high?
Sally Beauty Holdings' current Sloan Ratio % is -1.61%. Overall, Sally Beauty Holdings has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sally Beauty Holdings' Sloan Ratio % compare to OLPX and SVV?
Sally Beauty Holdings' Sloan Ratio % of -1.61% can be compared against companies in the Retail - Cyclical 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 Retail - Cyclical company?
A good Sloan Ratio % depends on the Retail - Cyclical 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 Sally Beauty Holdings and its competitors. Sally Beauty Holdings's current Sloan Ratio % is -1.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sally Beauty Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sally Beauty Holdings (SBH) is currently considered Modestly Overvalued. The stock's GF Value™ is $13.45, compared to a current price of $16.83 — trading 25.1% above its estimated fair value. The current Sloan Ratio % is -1.61%. Sally Beauty Holdings' overall GF Score™ is 75/100 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 Sally Beauty Holdings (SBH), the current Sloan Ratio % is -1.61% 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 Sally Beauty Holdings (SBH) Overvalued in 2026?
Based on GuruFocus' analysis, Sally Beauty Holdings stock appears to be overvalued.
The current stock price of $16.83 is trading 25.1% above its estimated GF Value™ of $13.45.
GuruFocus considers Sally Beauty Holdings to be Modestly Overvalued.
Key valuation signals for SBH:
Sloan Ratio %: -1.61%
GF Value™: $13.45 vs. price of $16.83 (25.1% above fair value)
No single metric tells the full story. See the SBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sally Beauty Holdings Inc is a professional beauty-products retailer based in the United States. The company operates throughout the United States, Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Mexico, Peru, France, Ireland, Spain, Germany, Netherlands, and other geographical regions. The company operates through two business segments: Sally Beauty Supply and Beauty Systems Group. The products offered by the company include hair color and care, hair dryers and hair-styling appliances, nail care, skin care, and others.
75GF Score
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