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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.
REDtone Digital Bhd's Sloan Ratio for the quarter that ended in Mar. 2026 was -3.37%.
As of Mar. 2026, REDtone Digital Bhd has a Sloan Ratio of -3.37%, indicating the company is in the safe zone and there is no funny business with accruals.
REDtone Digital Bhd (XKLS:0032) 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 Mar. 2026, REDtone Digital Bhd has a Sloan Ratio of -3.37%, indicating the company is in the safe zone and there is no funny business with accruals.
REDtone Digital Bhd Sloan Ratio % Related Terms
REDtone Digital Bhd Sloan Ratio % Historical Data
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The historical data trend for REDtone Digital Bhd'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.
XKLS:0032 vs VZ, TMUS, T: Sloan Ratio % Comparison
For the Telecom Services subindustry, REDtone Digital Bhd'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.
REDtone Digital Bhd Sloan Ratio % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where REDtone Digital Bhd'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.
REDtone Digital Bhd's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
REDtone Digital Bhd's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -7.58 (Jun. 2025 ) + 4.449 (Sep. 2025 ) + 3.353 (Dec. 2025 ) + 2.851 (Mar. 2026 ) = RM3.1 Mil.
REDtone Digital Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was -2.522 (Jun. 2025 ) + 39.944 (Sep. 2025 ) + 82.004 (Dec. 2025 ) + -36.839 (Mar. 2026 ) = RM82.6 Mil.
REDtone Digital Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 20.593 (Jun. 2025 ) + -62.953 (Sep. 2025 ) + 7.884 (Dec. 2025 ) + -32.68 (Mar. 2026 ) = RM-67.2 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.
REDtone Digital Bhd (XKLS:0032) has a Sloan Ratio % of -3.37% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on REDtone Digital Bhd and its competitors.
Is REDtone Digital Bhd's Sloan Ratio % too high?
REDtone Digital Bhd's current Sloan Ratio % is -3.37%. Overall, REDtone Digital Bhd has a GF Score™ of 55/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REDtone Digital Bhd's Sloan Ratio % compare to VZ and TMUS?
REDtone Digital Bhd's Sloan Ratio % of -3.37% can be compared against companies in the Telecommunication Services 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 Telecommunication Services company?
A good Sloan Ratio % depends on the Telecommunication Services 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 REDtone Digital Bhd and its competitors. REDtone Digital Bhd's current Sloan Ratio % is -3.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REDtone Digital Bhd stock overvalued right now?
Based on GuruFocus' analysis, REDtone Digital Bhd (XKLS:0032) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.86, compared to a current price of RM0.32 — trading 63.4% below its estimated fair value. The current Sloan Ratio % is -3.37%. REDtone Digital Bhd's overall GF Score™ is 55/100 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 REDtone Digital Bhd (XKLS:0032), the current Sloan Ratio % is -3.37% as of Mar. 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 REDtone Digital Bhd (XKLS:0032) Overvalued in 2026?
Based on GuruFocus' analysis, REDtone Digital Bhd stock appears to be undervalued.
The current stock price of RM0.32 is trading 63.4% below its estimated GF Value™ of RM0.86.
GuruFocus considers REDtone Digital Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0032:
Sloan Ratio %: -3.37%
GF Value™: RM0.86 vs. price of RM0.32 (63.4% below fair value)
No single metric tells the full story. See the XKLS:0032 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REDtone Digital Bhd is a digital infrastructure and services provider operating through three segments: Telecommunication Services, offering data, managed network services, Cloud PBX, SIP Trunking, managed cybersecurity, and Starlink satellite connectivity; Managed Telecommunications Network Services, strengthening Malaysia's digital infrastructure in underserved and rural areas, supporting initiatives like Kampung Tanpa Wayar, Time-3, and JENDELA; and Cloud, Artificial Intelligence, and Internet of Things, providing cloud-first, AI-powered, and IoT-enabled solutions including AI Agents, smart farming, and SaaS CRM platforms. The company generates majority of its revenue from the Managed Telecommunications Network Services segment and operates in Malaysia.
55GF Score
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