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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 Feb. 2026, Thermal Energy International has a Sloan Ratio of 2.25%, indicating the company is in the safe zone and there is no funny business with accruals.
Thermal Energy International (OTCPK:TMGEF) 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 Feb. 2026, Thermal Energy International has a Sloan Ratio of 2.25%, indicating the company is in the safe zone and there is no funny business with accruals.
Thermal Energy International Sloan Ratio % Related Terms
Thermal Energy International 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.
TMGEF vs VLTO, ZWS, CECO: Sloan Ratio % Comparison
For the Pollution & Treatment Controls subindustry, Thermal Energy International'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.
Thermal Energy International Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Thermal Energy International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Thermal Energy International's Sloan Ratio % falls into.
Thermal Energy International 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.
Thermal Energy International's Net Income for the trailing twelve months (TTM) ended in Feb. 2026 was 0.162 (May. 2025 ) + 0.107 (Aug. 2025 ) + 0.411 (Nov. 2025 ) + 0.237 (Feb. 2026 ) = $0.92 Mil.
Thermal Energy International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2026 was -0.954 (May. 2025 ) + 1.398 (Aug. 2025 ) + -1.285 (Nov. 2025 ) + 1.824 (Feb. 2026 ) = $0.98 Mil.
Thermal Energy International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2026 was -0.011 (May. 2025 ) + -0.008 (Aug. 2025 ) + -0.015 (Nov. 2025 ) + -0.254 (Feb. 2026 ) = $-0.29 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.
Thermal Energy International (TMGEF) has a Sloan Ratio % of 2.25% as of Feb. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Thermal Energy International and its competitors.
Is Thermal Energy International's Sloan Ratio % too high?
Thermal Energy International's current Sloan Ratio % is 2.25%. Overall, Thermal Energy International has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Thermal Energy International's Sloan Ratio % compare to VLTO and ZWS?
Thermal Energy International's Sloan Ratio % of 2.25% can be compared against companies in the Industrial 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 an Industrial Products company?
A good Sloan Ratio % depends on the Industrial 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 Thermal Energy International and its competitors. Thermal Energy International's current Sloan Ratio % is 2.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Thermal Energy International stock overvalued right now?
Based on GuruFocus' analysis, Thermal Energy International (TMGEF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.18, compared to a current price of $0.11 — trading 41.3% below its estimated fair value. The current Sloan Ratio % is 2.25%. Thermal Energy International's overall GF Score™ is 53/100 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 Thermal Energy International (TMGEF), the current Sloan Ratio % is 2.25% as of Feb. 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 Thermal Energy International (TMGEF) Overvalued in 2026?
Based on GuruFocus' analysis, Thermal Energy International stock appears to be undervalued.
The current stock price of $0.11 is trading 41.3% below its estimated GF Value™ of $0.18.
GuruFocus considers Thermal Energy International to be Possible Value Trap.
Key valuation signals for TMGEF:
Sloan Ratio %: 2.25%
GF Value™: $0.18 vs. price of $0.11 (41.3% below fair value)
No single metric tells the full story. See the TMGEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Thermal Energy International Inc is a supplier of proprietary, energy efficiency and emissions reduction solutions to the industrial and institutional sectors. It markets, sells, engineers, fabricates, constructs, installs and supports technology lines - heat recovery solutions and condensate return system solutions. The product portfolio consists of GEM steam traps, FLU-ACE - direct contact condensing heat recovery, and Dry Rex - low-temperature biomass drying systems. The operating segment includes geographical areas that reflect the core business which has units located in Ottawa, Canada and Bristol, UK. The firm derives revenue from Canada, the UK, Germany, France, Poland, India, etc and the rest of the world. Substantial sales revenue comes from the USA.
53GF Score
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