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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.
Sotera Health Co's Sloan Ratio for the quarter that ended in Mar. 2026 was 0.53%.
As of Mar. 2026, Sotera Health Co has a Sloan Ratio of 0.53%, indicating the company is in the safe zone and there is no funny business with accruals.
Sotera Health Co (NAS:SHC) 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, Sotera Health Co has a Sloan Ratio of 0.53%, indicating the company is in the safe zone and there is no funny business with accruals.
Sotera Health Co Sloan Ratio % Related Terms
Sotera Health Co Sloan Ratio % Historical Data
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The historical data trend for Sotera Health Co'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 Diagnostics & Research subindustry, Sotera Health 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.
Sotera Health Co Sloan Ratio % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Sotera Health Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sotera Health 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.
Sotera Health Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Sotera Health Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 7.962 (Jun. 2025 ) + 48.4 (Sep. 2025 ) + 34.847 (Dec. 2025 ) + 26.589 (Mar. 2026 ) = $118 Mil.
Sotera Health Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 57.416 (Jun. 2025 ) + 71.154 (Sep. 2025 ) + 103.104 (Dec. 2025 ) + 29.435 (Mar. 2026 ) = $261 Mil.
Sotera Health Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -31.229 (Jun. 2025 ) + -33.335 (Sep. 2025 ) + -50.699 (Dec. 2025 ) + -45.128 (Mar. 2026 ) = $-160 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.
Sotera Health Co (SHC) has a Sloan Ratio % of 0.53% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Sotera Health Co and its competitors.
Is Sotera Health Co's Sloan Ratio % too high?
Sotera Health Co's current Sloan Ratio % is 0.53%. Overall, Sotera Health Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sotera Health Co's Sloan Ratio % compare to VCYT and RDNT?
Sotera Health Co's Sloan Ratio % of 0.53% can be compared against companies in the Medical Diagnostics & Research 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 Medical Diagnostics & Research company?
A good Sloan Ratio % depends on the Medical Diagnostics & Research 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 Sotera Health Co and its competitors. Sotera Health Co's current Sloan Ratio % is 0.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sotera Health Co stock overvalued right now?
Based on GuruFocus' analysis, Sotera Health Co (SHC) is currently considered Fairly Valued. The stock's GF Value™ is $16.37, compared to a current price of $17.40 — trading 6.3% above its estimated fair value. The current Sloan Ratio % is 0.53%. Sotera Health Co's overall GF Score™ is 74/100 with 3 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 Sotera Health Co (SHC), the current Sloan Ratio % is 0.53% 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 Sotera Health Co (SHC) Overvalued in 2026?
Based on GuruFocus' analysis, Sotera Health Co stock appears to be overvalued.
The current stock price of $17.40 is trading 6.3% above its estimated GF Value™ of $16.37.
GuruFocus considers Sotera Health Co to be Fairly Valued.
Key valuation signals for SHC:
Sloan Ratio %: 0.53%
GF Value™: $16.37 vs. price of $17.40 (6.3% above fair value)
No single metric tells the full story. See the SHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sotera Health Co provides sterilization, analytical lab testing, and advisory services to help ensure that medical, pharmaceutical, and food products are safe for healthcare practitioners, patients, and consumers. The company operates in three reportable segments: Sterigenics, Nordion, and Nelson Labs. The Sterigenics segment, which generates maximum revenue, provides outsourced terminal sterilization and irradiation services for medical devices, pharmaceuticals, food safety, and other application markets using three core technologies: gamma irradiation, EO processing, and E-beam irradiation. Geographically, the company generates maximum revenue from the United States, followed by Canada, Europe, and other regions.
74GF Score
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