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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.
Chung Hwa Chemical Industrial Works (TPE:1727) 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, Chung Hwa Chemical Industrial Works has a Sloan Ratio of 15.49%, indicating there is a warning stage of accrual build up.
Chung Hwa Chemical Industrial Works Sloan Ratio % Related Terms
Chung Hwa Chemical Industrial Works 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.
Chung Hwa Chemical Industrial Works Sloan Ratio % Chart
For the Chemicals subindustry, Chung Hwa Chemical Industrial Works'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.
Chung Hwa Chemical Industrial Works Sloan Ratio % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Chung Hwa Chemical Industrial Works's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chung Hwa Chemical Industrial Works's Sloan Ratio % falls into.
Chung Hwa Chemical Industrial Works 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.
Chung Hwa Chemical Industrial Works's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 1.936 (Sep. 2025 ) + 1.527 (Dec. 2025 ) + 35.899 (Mar. 2026 ) + 48.812 (Jun. 2026 ) = NT$88 Mil.
Chung Hwa Chemical Industrial Works's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 76.268 (Sep. 2025 ) + 10.45 (Dec. 2025 ) + 37.84 (Mar. 2026 ) + -0.054 (Jun. 2026 ) = NT$125 Mil.
Chung Hwa Chemical Industrial Works's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -158.993 (Sep. 2025 ) + -216.209 (Dec. 2025 ) + -172.738 (Mar. 2026 ) + -77.424 (Jun. 2026 ) = NT$-625 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.
Chung Hwa Chemical Industrial Works (TPE:1727) has a Sloan Ratio % of 15.49% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Chung Hwa Chemical Industrial Works and its competitors.
Is Chung Hwa Chemical Industrial Works' Sloan Ratio % too high?
Chung Hwa Chemical Industrial Works' current Sloan Ratio % is 15.49%. Overall, Chung Hwa Chemical Industrial Works has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chung Hwa Chemical Industrial Works' Sloan Ratio % compare to DOW?
Chung Hwa Chemical Industrial Works' Sloan Ratio % of 15.49% can be compared against companies in the Chemicals 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 Chemicals company?
A good Sloan Ratio % depends on the Chemicals 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 Chung Hwa Chemical Industrial Works and its competitors. Chung Hwa Chemical Industrial Works's current Sloan Ratio % is 15.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chung Hwa Chemical Industrial Works stock overvalued right now?
Based on GuruFocus' analysis, Chung Hwa Chemical Industrial Works (TPE:1727) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$38.66, compared to a current price of NT$89.60 — trading 131.8% above its estimated fair value. The current Sloan Ratio % is 15.49%. Chung Hwa Chemical Industrial Works' overall GF Score™ is 53/100 with 8 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 Chung Hwa Chemical Industrial Works (TPE:1727), the current Sloan Ratio % is 15.49% 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 Chung Hwa Chemical Industrial Works (TPE:1727) Overvalued in 2026?
Based on GuruFocus' analysis, Chung Hwa Chemical Industrial Works stock appears to be overvalued.
The current stock price of NT$89.60 is trading 131.8% above its estimated GF Value™ of NT$38.66.
GuruFocus considers Chung Hwa Chemical Industrial Works to be Significantly Overvalued.
Key valuation signals for TPE:1727:
Sloan Ratio %: 15.49%
GF Value™: NT$38.66 vs. price of NT$89.60 (131.8% above fair value)
No single metric tells the full story. See the TPE:1727 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chung Hwa Chemical Industrial Works Ltd operates as a chemical manufacturer. The company is engaged in the manufacturing and retail of sulfuric acid and other chemical industrial raw materials, and trading of finished products, and design of related chemical engineering, industrial investment, chemical raw materials, import and export trade, and agency distribution. The company single segment of Chemicals are further bifurcated as Basic chemicals, Specialty chemicals, and Electronic chemicals, out of which maximum revenue is generated from Basic chemicals.
53GF Score
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