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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.
LGMS Bhd's Sloan Ratio for the quarter that ended in Mar. 2026 was 17.00%.
As of Mar. 2026, LGMS Bhd has a Sloan Ratio of 17.00%, indicating there is a warning stage of accrual build up.
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, LGMS Bhd has a Sloan Ratio of 17.00%, indicating there is a warning stage of accrual build up.
LGMS Bhd Sloan Ratio % Related Terms
LGMS Bhd Sloan Ratio % Historical Data
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The historical data trend for LGMS 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:0249 vs IBM, ACN, FISV: Sloan Ratio % Comparison
For the Information Technology Services subindustry, LGMS 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.
LGMS Bhd Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, LGMS Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where LGMS 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.
LGMS Bhd's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
LGMS Bhd's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 2.026 (Jun. 2025 ) + 2.382 (Sep. 2025 ) + 3.872 (Dec. 2025 ) + 2.198 (Mar. 2026 ) = RM10.48 Mil.
LGMS Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 2.505 (Jun. 2025 ) + 3.065 (Sep. 2025 ) + 3.817 (Dec. 2025 ) + -0.429 (Mar. 2026 ) = RM8.96 Mil.
LGMS Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -0.716 (Jun. 2025 ) + -1.063 (Sep. 2025 ) + -0.003 (Dec. 2025 ) + -16.307 (Mar. 2026 ) = RM-18.09 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.
LGMS Bhd (XKLS:0249) has a Sloan Ratio % of 17.00% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on LGMS Bhd and its competitors.
Is LGMS Bhd's Sloan Ratio % too high?
LGMS Bhd's current Sloan Ratio % is 17.00%. Overall, LGMS Bhd has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LGMS Bhd's Sloan Ratio % compare to IBM and ACN?
LGMS Bhd's Sloan Ratio % of 17.00% can be compared against companies in the Software 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 Software company?
A good Sloan Ratio % depends on the Software 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 LGMS Bhd and its competitors. LGMS Bhd's current Sloan Ratio % is 17.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LGMS Bhd stock overvalued right now?
Based on GuruFocus' analysis, LGMS Bhd (XKLS:0249) is currently considered Significantly Undervalued. The stock's GF Value™ is RM1.33, compared to a current price of RM0.52 — trading 60.9% below its estimated fair value. The current Sloan Ratio % is 17.00%. LGMS Bhd's overall GF Score™ is 82/100 with 5 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 LGMS Bhd (XKLS:0249), the current Sloan Ratio % is 17.00% 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 LGMS Bhd (XKLS:0249) Overvalued in 2026?
Based on GuruFocus' analysis, LGMS Bhd stock appears to be undervalued.
The current stock price of RM0.52 is trading 60.9% below its estimated GF Value™ of RM1.33.
GuruFocus considers LGMS Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0249:
Sloan Ratio %: 17.00%
GF Value™: RM1.33 vs. price of RM0.52 (60.9% below fair value)
No single metric tells the full story. See the XKLS:0249 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LGMS Bhd is an independent provider of professional cybersecurity services involved in cybersecurity assessment and penetration testing, cyber security management and compliance services as well as digital forensics. The company has three segments Cyber risk prevention Involved in the provision of security vulnerability assessment and penetration testing, training, and risk scoring; Cyber risk management and compliance Involved in the provision of cybersecurity advisory, certification, and compliance services; and Cyber threat and incident response Involved in the provision of digital forensics and computer crime investigations, cybersecurity incident response and compromise assessment. It generates revenue from Cyber risk prevention.
82GF 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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