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.
Valneva SE's Sloan Ratio for the quarter that ended in Sep. 2024 was 15.11%.
Warning Sign:
When sloan ratio (26.5)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2024, Valneva SE has a Sloan Ratio of 15.11%, indicating earnings are more likely to be made up of accruals.
Valneva SE Sloan Ratio % Historical Data
The historical data trend for Valneva SE'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.
Competitive Comparison of Valneva SE's Sloan Ratio %
For the Biotechnology subindustry, Valneva SE'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.
Valneva SE's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Valneva SE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Valneva SE's Sloan Ratio % falls into.
Valneva SE 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.
Valneva SE's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Valneva SE's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -35.069 (Dec. 2023 ) + 64.032 (Mar. 2024 ) + -26.839 (Jun. 2024 ) + -10.251 (Sep. 2024 ) = $-8.1 Mil.
Valneva SE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -71.877 (Dec. 2023 ) + -30.904 (Mar. 2024 ) + -40.72 (Jun. 2024 ) + -11.635 (Sep. 2024 ) = $-155.1 Mil.
Valneva SE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -17.793 (Dec. 2023 ) + 94.253 (Mar. 2024 ) + 0.963 (Jun. 2024 ) + -17.07 (Sep. 2024 ) = $60.4 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.
Valneva SE (NAS:VALN) 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 Sep. 2024, Valneva SE has a Sloan Ratio of 15.11%, indicating earnings are more likely to be made up of accruals.
Valneva SE Sloan Ratio % Related Terms
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Valneva SE is a vaccine company focused on developing life-saving vaccines. Its portfolio includes three vaccines for travelers. The segments of the group are Commercialized vaccines which relate to marketed vaccines, the group's vaccines IXIARO/JESPECT, DUKORAL, IXCHIQ; Covid includes development, manufacturing, & distribution related to the COVID-19 vaccine, Vaccine candidates which relate to research and development programs to generate new approvable products to generate future cash flows from product sales through partnering with pharmaceutical companies; & Technologies and services which relate to services and inventions at a commercialization stage. The company generates the majority of its revenue from product sales.
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