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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.
As of Mar. 2026, Simpson Manufacturing Co has a Sloan Ratio of -0.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Simpson Manufacturing Co (NYSE:SSD) 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, Simpson Manufacturing Co has a Sloan Ratio of -0.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Simpson Manufacturing Co Sloan Ratio % Related Terms
Simpson Manufacturing 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.
For the Lumber & Wood Production subindustry, Simpson Manufacturing 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.
Simpson Manufacturing Co Sloan Ratio % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Simpson Manufacturing Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Simpson Manufacturing Co's Sloan Ratio % falls into.
Simpson Manufacturing Co 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.
Simpson Manufacturing Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Simpson Manufacturing Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 103.541 (Jun. 2025 ) + 107.444 (Sep. 2025 ) + 56.214 (Dec. 2025 ) + 88.216 (Mar. 2026 ) = $355 Mil.
Simpson Manufacturing Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 125.215 (Jun. 2025 ) + 170.194 (Sep. 2025 ) + 155.687 (Dec. 2025 ) + 35.547 (Mar. 2026 ) = $487 Mil.
Simpson Manufacturing Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -40.466 (Jun. 2025 ) + -15.961 (Sep. 2025 ) + -29.704 (Dec. 2025 ) + -19.049 (Mar. 2026 ) = $-105 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.
Simpson Manufacturing Co (SSD) has a Sloan Ratio % of -0.86% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Simpson Manufacturing Co and its competitors.
Is Simpson Manufacturing Co's Sloan Ratio % too high?
Simpson Manufacturing Co's current Sloan Ratio % is -0.86%. Overall, Simpson Manufacturing Co has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Simpson Manufacturing Co's Sloan Ratio % compare to UFPI and BCC?
Simpson Manufacturing Co's Sloan Ratio % of -0.86% can be compared against companies in the Forest Products 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 Forest Products company?
A good Sloan Ratio % depends on the Forest Products 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 Simpson Manufacturing Co and its competitors. Simpson Manufacturing Co's current Sloan Ratio % is -0.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simpson Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Simpson Manufacturing Co (SSD) is currently considered Fairly Valued. The stock's GF Value™ is $185.32, compared to a current price of $189.18 — trading 2.1% above its estimated fair value. The current Sloan Ratio % is -0.86%. Simpson Manufacturing Co's overall GF Score™ is 95/100 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 Simpson Manufacturing Co (SSD), the current Sloan Ratio % is -0.86% 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 Simpson Manufacturing Co (SSD) Overvalued in 2026?
Based on GuruFocus' analysis, Simpson Manufacturing Co stock appears to be overvalued.
The current stock price of $189.18 is trading 2.1% above its estimated GF Value™ of $185.32.
GuruFocus considers Simpson Manufacturing Co to be Fairly Valued.
Key valuation signals for SSD:
Sloan Ratio %: -0.86%
GF Value™: $185.32 vs. price of $189.18 (2.1% above fair value)
No single metric tells the full story. See the SSD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simpson Manufacturing Co Inc designs, manufactures, and markets systems and products to make buildings and structures safe and secure. It produces wood construction products, including connectors, truss plates, fastening systems, fasteners, and shearwalls, as well as concrete construction products such as adhesives, specialty chemicals, mechanical anchors, powder actuated tools, and fiber reinforcing materials. The company serves residential, industrial, commercial, and infrastructure construction, remodeling, and do-it-yourself markets, operating exclusively in the building products industry. It has three regional segments: North America, Europe, and Asia/Pacific. The majority of its revenue comes from wood products.
95GF Score
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