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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.
As of Mar. 2026, Philip Morris International has a Sloan Ratio of 3.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Philip Morris International (XSWX:PMI) 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, Philip Morris International has a Sloan Ratio of 3.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Philip Morris International Sloan Ratio % Related Terms
Philip Morris International Sloan Ratio % Historical Data
* 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.
XSWX:PMI vs MO, TPB, UVV: Sloan Ratio % Comparison
For the Tobacco subindustry, Philip Morris International'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.
Philip Morris International Sloan Ratio % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Philip Morris International's Sloan Ratio % falls into.
Philip Morris International 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.
Philip Morris International's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 2471.315 (Jun. 2025 ) + 2768.836 (Sep. 2025 ) + 1706.163 (Dec. 2025 ) + 1919.437 (Mar. 2026 ) = CHF8,866 Mil.
Philip Morris International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 2774.638 (Jun. 2025 ) + 3552.198 (Sep. 2025 ) + 3752.602 (Dec. 2025 ) + -314.133 (Mar. 2026 ) = CHF9,765 Mil.
Philip Morris International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -1883.371 (Jun. 2025 ) + -628.123 (Sep. 2025 ) + -341.073 (Dec. 2025 ) + -2.362 (Mar. 2026 ) = CHF-2,855 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.
Philip Morris International (XSWX:PMI) has a Sloan Ratio % of 3.60% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Philip Morris International and its competitors.
Is Philip Morris International's Sloan Ratio % too high?
Philip Morris International's current Sloan Ratio % is 3.60%. Overall, Philip Morris International has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's Sloan Ratio % compare to MO and TPB?
Philip Morris International's Sloan Ratio % of 3.60% can be compared against companies in the Tobacco Products 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 Tobacco Products company?
A good Sloan Ratio % depends on the Tobacco Products 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 Philip Morris International and its competitors. Philip Morris International's current Sloan Ratio % is 3.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Philip Morris International stock overvalued right now?
Based on GuruFocus' analysis, Philip Morris International (XSWX:PMI) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF118.25, compared to a current price of CHF155.00 — trading 31.1% above its estimated fair value. The current Sloan Ratio % is 3.60%. Philip Morris International's overall GF Score™ is 86/100 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 Philip Morris International (XSWX:PMI), the current Sloan Ratio % is 3.60% 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 Philip Morris International (XSWX:PMI) Overvalued in 2026?
Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued.
The current stock price of CHF155.00 is trading 31.1% above its estimated GF Value™ of CHF118.25.
GuruFocus considers Philip Morris International to be Significantly Overvalued.
Key valuation signals for XSWX:PMI:
Sloan Ratio %: 3.60%
GF Value™: CHF118.25 vs. price of CHF155.00 (31.1% above fair value)
No single metric tells the full story. See the XSWX:PMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Created from the international operations of Altria in 2008, Philip Morris International sells cigarettes and reduced-risk products, including heat sticks, vapes, and oral nicotine offerings, primarily outside of the US. With the 2023 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches primarily in the US and Scandinavia, PMI is not only dominant in smokable products but also has the Iqos and Zyn brands, which respectively dominate heated tobacco and nicotine pouches in most markets. It also owns the Veev brand in vapes.
86GF Score
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