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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.
Faes Farma's Sloan Ratio for the quarter that ended in Jun. 2026 was 17.05%.
As of Jun. 2026, Faes Farma has a Sloan Ratio of 17.05%, 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 Jun. 2026, Faes Farma has a Sloan Ratio of 17.05%, indicating there is a warning stage of accrual build up.
Faes Farma Sloan Ratio % Related Terms
Faes Farma Sloan Ratio % Historical Data
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The historical data trend for Faes Farma'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.
XMAD:FAE vs ZTS, UTHR, VTRS: Sloan Ratio % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Faes Farma'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.
Faes Farma Sloan Ratio % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Faes Farma's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Faes Farma'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.
Faes Farma's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Faes Farma's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 27.296 (Dec. 2025 ) + 56.883 (Jun. 2026 ) = €84.2 Mil.
Faes Farma's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 36.462 (Dec. 2025 ) + 43.895 (Jun. 2026 ) = €80.4 Mil.
Faes Farma's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -231.134 (Dec. 2025 ) + -10.915 (Jun. 2026 ) = €-242.0 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.
Faes Farma (XMAD:FAE) has a Sloan Ratio % of 17.05% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Faes Farma and its competitors.
Is Faes Farma's Sloan Ratio % too high?
Faes Farma's current Sloan Ratio % is 17.05%. Overall, Faes Farma has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faes Farma's Sloan Ratio % compare to ZTS and UTHR?
Faes Farma's Sloan Ratio % of 17.05% can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?
A good Sloan Ratio % depends on the Drug Manufacturers 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 Faes Farma and its competitors. Faes Farma's current Sloan Ratio % is 17.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faes Farma stock overvalued right now?
Based on GuruFocus' analysis, Faes Farma (XMAD:FAE) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.47, compared to a current price of €4.55 — trading 16.9% below its estimated fair value. The current Sloan Ratio % is 17.05%. Faes Farma's overall GF Score™ is 92/100 with 7 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 Faes Farma (XMAD:FAE), the current Sloan Ratio % is 17.05% 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 Faes Farma (XMAD:FAE) Overvalued in 2026?
Based on GuruFocus' analysis, Faes Farma stock appears to be undervalued.
The current stock price of €4.55 is trading 16.9% below its estimated GF Value™ of €5.47.
GuruFocus considers Faes Farma to be Modestly Undervalued.
Key valuation signals for XMAD:FAE:
Sloan Ratio %: 17.05%
GF Value™: €5.47 vs. price of €4.55 (16.9% below fair value)
No single metric tells the full story. See the XMAD:FAE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Faes Farma SA purpose is manufacturing and selling all kinds of chemical and pharmaceutical products, foodstuffs, cosmetics, dietetics and medicinal plants, as well as acquiring, purchasing, disposing of, investing in, holding, using, managing, administering, marketing and leasing corporations, securities and real estate, patents, trademarks and registered brands and equity interests. It is mainly engaged in the manufacture and sale of pharmaceutical products, as well as in the manufacture and sale of animal nutrition and health products. Its segments are Pharmaceutical and healthcare specialities, Animal nutrition and health, and Other segments. It generates majority of revenue from Pharmaceutical and healthcare specialities. It operates mainly in domestic and international markets.
92GF Score
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