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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.
Nippon Shokubai Co's Sloan Ratio for the quarter that ended in Jun. 2026 was 2.22%.
As of Jun. 2026, Nippon Shokubai Co has a Sloan Ratio of 2.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Nippon Shokubai Co (TSE:4114) 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, Nippon Shokubai Co has a Sloan Ratio of 2.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Nippon Shokubai Co Sloan Ratio % Related Terms
Nippon Shokubai Co Sloan Ratio % Historical Data
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The historical data trend for Nippon Shokubai Co's Sloan Ratio % can be seen below:
* 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 Chemicals subindustry, Nippon Shokubai 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.
Nippon Shokubai Co Sloan Ratio % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nippon Shokubai Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nippon Shokubai 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.
Nippon Shokubai Co's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
Nippon Shokubai Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 3826 (Sep. 2025 ) + 5843 (Dec. 2025 ) + 2697 (Mar. 2026 ) + 9030 (Jun. 2026 ) = 円21,396 Mil.
Nippon Shokubai Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 10778 (Sep. 2025 ) + 14807 (Dec. 2025 ) + 13197 (Mar. 2026 ) + 13141 (Jun. 2026 ) = 円51,923 Mil.
Nippon Shokubai Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -3661 (Sep. 2025 ) + -10111 (Dec. 2025 ) + -17467 (Mar. 2026 ) + -12820 (Jun. 2026 ) = 円-44,059 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.
Nippon Shokubai Co (TSE:4114) has a Sloan Ratio % of 2.22% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Nippon Shokubai Co and its competitors.
Is Nippon Shokubai Co's Sloan Ratio % too high?
Nippon Shokubai Co's current Sloan Ratio % is 2.22%. Overall, Nippon Shokubai Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Shokubai Co's Sloan Ratio % compare to DOW?
Nippon Shokubai Co's Sloan Ratio % of 2.22% 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 Nippon Shokubai Co and its competitors. Nippon Shokubai Co's current Sloan Ratio % is 2.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Shokubai Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Shokubai Co (TSE:4114) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,931.94, compared to a current price of 円2,577.50 — trading 33.4% above its estimated fair value. The current Sloan Ratio % is 2.22%. Nippon Shokubai Co's overall GF Score™ is 75/100 with 9 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 Nippon Shokubai Co (TSE:4114), the current Sloan Ratio % is 2.22% 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 Nippon Shokubai Co (TSE:4114) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Shokubai Co stock appears to be overvalued.
The current stock price of 円2,577.50 is trading 33.4% above its estimated GF Value™ of 円1,931.94.
GuruFocus considers Nippon Shokubai Co to be Significantly Overvalued.
Key valuation signals for TSE:4114:
Sloan Ratio %: 2.22%
GF Value™: 円1,931.94 vs. price of 円2,577.50 (33.4% above fair value)
No single metric tells the full story. See the TSE:4114 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Shokubai Co Ltd manufactures and sells a variety of chemicals, catalysts, and chemical-based products. The firm organizes itself into three segments based on product type. The functional chemicals segment, which generates the majority of revenue, sells polymers for concrete mixtures, acrylates used in detergents, and resins for paints and processed adhesive products. The basic chemicals segment sells ethylene oxide and ethylene glycol used in polyester fibers and plastic beverage containers. The environment and catalysts segment sells catalysts used for automotive products and lithium-ion battery production. The majority of revenue comes from Asia.
75GF Score
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