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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 Jun. 2026, Kaori Heat Treatment Co has a Sloan Ratio of 5.83%, indicating the company is in the safe zone and there is no funny business with accruals.
Kaori Heat Treatment Co (TPE:8996) 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, Kaori Heat Treatment Co has a Sloan Ratio of 5.83%, indicating the company is in the safe zone and there is no funny business with accruals.
Kaori Heat Treatment Co Sloan Ratio % Related Terms
Kaori Heat Treatment 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.
TPE:8996 vs GEV, ETN, PH: Sloan Ratio % Comparison
For the Specialty Industrial Machinery subindustry, Kaori Heat Treatment 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.
Kaori Heat Treatment Co Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kaori Heat Treatment Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kaori Heat Treatment 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.
Kaori Heat Treatment Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Kaori Heat Treatment Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 258.471 (Sep. 2025 ) + 315.967 (Dec. 2025 ) + 605.668 (Mar. 2026 ) + 200.836 (Jun. 2026 ) = NT$1,381 Mil.
Kaori Heat Treatment Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 613.698 (Sep. 2025 ) + 15.467 (Dec. 2025 ) + 517.768 (Mar. 2026 ) + 406.926 (Jun. 2026 ) = NT$1,554 Mil.
Kaori Heat Treatment Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 70.436 (Sep. 2025 ) + -120.092 (Dec. 2025 ) + -193.791 (Mar. 2026 ) + -527.478 (Jun. 2026 ) = NT$-771 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.
Kaori Heat Treatment Co (TPE:8996) has a Sloan Ratio % of 5.83% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Kaori Heat Treatment Co and its competitors.
Is Kaori Heat Treatment Co's Sloan Ratio % too high?
Kaori Heat Treatment Co's current Sloan Ratio % is 5.83%. Overall, Kaori Heat Treatment Co has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kaori Heat Treatment Co's Sloan Ratio % compare to GEV and ETN?
Kaori Heat Treatment Co's Sloan Ratio % of 5.83% 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 Kaori Heat Treatment Co and its competitors. Kaori Heat Treatment Co's current Sloan Ratio % is 5.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kaori Heat Treatment Co stock overvalued right now?
Based on GuruFocus' analysis, Kaori Heat Treatment Co (TPE:8996) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$931.13, compared to a current price of NT$1,345.00 — trading 44.4% above its estimated fair value. The current Sloan Ratio % is 5.83%. Kaori Heat Treatment Co's overall GF Score™ is 87/100 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 Kaori Heat Treatment Co (TPE:8996), the current Sloan Ratio % is 5.83% 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 Kaori Heat Treatment Co (TPE:8996) Overvalued in 2026?
Based on GuruFocus' analysis, Kaori Heat Treatment Co stock appears to be overvalued.
The current stock price of NT$1,345.00 is trading 44.4% above its estimated GF Value™ of NT$931.13.
GuruFocus considers Kaori Heat Treatment Co to be Significantly Overvalued.
Key valuation signals for TPE:8996:
Sloan Ratio %: 5.83%
GF Value™: NT$931.13 vs. price of NT$1,345.00 (44.4% above fair value)
No single metric tells the full story. See the TPE:8996 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kaori Heat Treatment Co Ltd specializes in producing mechanical hardware, processing fabricated metals, and manufacturing and developing heat exchange products or thermal products. The Group's factories are established in Zhongli, Kaohsiung, etc. Its operating activities include heat treatment processing of various mechanical hardware and fabricated metals, plate heat exchangers, thermal products, and manufacturing activities. The Group operates in a single operating segment of plate heat exchangers, power generation, and thermal energy products. It operates in Asia, America, Europe, and others. The Group generates maximum revenue from America.
87GF Score
Get the complete analysis for TPE:8996
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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