Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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.
Shanghai Huafon Aluminium (SHSE:601702) 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, Shanghai Huafon Aluminium has a Sloan Ratio of 12.55%, indicating there is a warning stage of accrual build up.
Shanghai Huafon Aluminium Sloan Ratio % Related Terms
Shanghai Huafon Aluminium 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.
For the Aluminum subindustry, Shanghai Huafon Aluminium'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.
Shanghai Huafon Aluminium Sloan Ratio % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Shanghai Huafon Aluminium's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Shanghai Huafon Aluminium's Sloan Ratio % falls into.
Shanghai Huafon Aluminium 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.
Shanghai Huafon Aluminium's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Shanghai Huafon Aluminium's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 325.272 (Sep. 2025 ) + 306.113 (Dec. 2025 ) + 242.902 (Mar. 2026 ) + 314.503 (Jun. 2026 ) = ¥1,189 Mil.
Shanghai Huafon Aluminium's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 248.306 (Sep. 2025 ) + -57.895 (Dec. 2025 ) + -32.898 (Mar. 2026 ) + 97.66 (Jun. 2026 ) = ¥255 Mil.
Shanghai Huafon Aluminium's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -53.377 (Sep. 2025 ) + -113.464 (Dec. 2025 ) + -114.224 (Mar. 2026 ) + -217.281 (Jun. 2026 ) = ¥-498 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.
Shanghai Huafon Aluminium (SHSE:601702) has a Sloan Ratio % of 12.55% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Shanghai Huafon Aluminium and its competitors.
Is Shanghai Huafon Aluminium's Sloan Ratio % too high?
Shanghai Huafon Aluminium's current Sloan Ratio % is 12.55%. Overall, Shanghai Huafon Aluminium has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shanghai Huafon Aluminium's Sloan Ratio % compare to AA?
Shanghai Huafon Aluminium's Sloan Ratio % of 12.55% can be compared against companies in the Metals & Mining 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 Metals & Mining company?
A good Sloan Ratio % depends on the Metals & Mining 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 Shanghai Huafon Aluminium and its competitors. Shanghai Huafon Aluminium's current Sloan Ratio % is 12.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Huafon Aluminium stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Huafon Aluminium (SHSE:601702) is currently considered Possible Value Trap. The stock's GF Value™ is ¥23.23, compared to a current price of ¥15.05 — trading 35.2% below its estimated fair value. The current Sloan Ratio % is 12.55%. Shanghai Huafon Aluminium's overall GF Score™ is 82/100 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 Shanghai Huafon Aluminium (SHSE:601702), the current Sloan Ratio % is 12.55% 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 Shanghai Huafon Aluminium (SHSE:601702) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Huafon Aluminium stock appears to be undervalued.
The current stock price of ¥15.05 is trading 35.2% below its estimated GF Value™ of ¥23.23.
GuruFocus considers Shanghai Huafon Aluminium to be Possible Value Trap.
Key valuation signals for SHSE:601702:
Sloan Ratio %: 12.55%
GF Value™: ¥23.23 vs. price of ¥15.05 (35.2% below fair value)
No single metric tells the full story. See the SHSE:601702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Huafon Aluminium Corp is engaged in production and sales of aluminum sheet, strip and foil. The company's products include brazed heat exchangers material; water tanks, heaters, air coolers; condenser; evaporator, heater, oil cooler; and Other Industrial Products Materials. Its products line covers all kinds of alloyed material and specifications which is widely used in the automobile and construction machinery and equipment cooling systems, power station cooling system, micro-channel cooler and all kinds of both commercial and residential air-conditioners. It also processes all kinds of aluminum products processing 1,3,4,5,7 series, which are widely used in transportation construction, food packaging, electronics information industry and other fields.
82GF Score
Get the complete analysis for SHSE:601702
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:601702 has been successfully added to your 
