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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.
ECN Capital's Sloan Ratio for the quarter that ended in Dec. 2025 was 1.17%.
As of Dec. 2025, ECN Capital has a Sloan Ratio of 1.17%, indicating the company is in the safe zone and there is no funny business with accruals.
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 Dec. 2025, ECN Capital has a Sloan Ratio of 1.17%, indicating the company is in the safe zone and there is no funny business with accruals.
ECN Capital Sloan Ratio % Related Terms
ECN Capital Sloan Ratio % Historical Data
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The historical data trend for ECN Capital'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.
TSX:ECN vs RKT, FNMA, PFSI: Sloan Ratio % Comparison
For the Mortgage Finance subindustry, ECN Capital'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.
ECN Capital Sloan Ratio % vs Banks Industry
For the Banks industry and Financial Services sector, ECN Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ECN Capital'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.
ECN Capital's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
ECN Capital's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was -1.744 (Mar. 2025 ) + 2.947 (Jun. 2025 ) + 17.319 (Sep. 2025 ) + 9.728 (Dec. 2025 ) = C$28.3 Mil.
ECN Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 19.273 (Mar. 2025 ) + 17.29 (Jun. 2025 ) + -1.468 (Sep. 2025 ) + -18.103 (Dec. 2025 ) = C$17.0 Mil.
ECN Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -0.164 (Mar. 2025 ) + -0.078 (Jun. 2025 ) + -4.319 (Sep. 2025 ) + 0.043 (Dec. 2025 ) = C$-4.5 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.
ECN Capital (TSX:ECN) has a Sloan Ratio % of 1.17% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on ECN Capital and its competitors.
Is ECN Capital's Sloan Ratio % too high?
ECN Capital's current Sloan Ratio % is 1.17%. Overall, ECN Capital has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does ECN Capital's Sloan Ratio % compare to RKT and FNMA?
ECN Capital's Sloan Ratio % of 1.17% can be compared against companies in the Banks 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 Banks company?
A good Sloan Ratio % depends on the Banks 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 ECN Capital and its competitors. ECN Capital's current Sloan Ratio % is 1.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ECN Capital stock overvalued right now?
ECN Capital (TSX:ECN) has a current Sloan Ratio % of 1.17%. The stock's GF Value™ is C$3.32, compared to a current price of C$3.10 — trading 6.6% below its estimated fair value. The current Sloan Ratio % is 1.17%. ECN Capital's overall GF Score™ is 46/100 with 6 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 ECN Capital (TSX:ECN), the current Sloan Ratio % is 1.17% as of Dec. 2025. 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 ECN Capital (TSX:ECN) Overvalued in 2026?
Based on GuruFocus' analysis, ECN Capital stock appears to be undervalued.
The current stock price of C$3.10 is trading 6.6% below its estimated GF Value™ of C$3.32.
Key valuation signals for TSX:ECN:
Sloan Ratio %: 1.17%
GF Value™: C$3.32 vs. price of C$3.10 (6.6% below fair value)
No single metric tells the full story. See the TSX:ECN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ECN Capital Corp is a financial business service provider. The group originates, manages, and advises on credit assets on behalf of its partners, specifically consumer loans and commercial loans. Its operating segments are: Manufactured Housing Finance and Recreational Vehicle and Marine (RV and Marine) Finance. The group generates maximum revenue from the Manufactured Housing Finance segment.
46GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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