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Morgan Stanley China A Share Fund (Morgan Stanley China A Share Fund) Piotroski F-Score : 7 (As of May. 01, 2024)


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What is Morgan Stanley China A Share Fund Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Morgan Stanley China A Share Fund has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Morgan Stanley China A Share Fund's Piotroski F-Score or its related term are showing as below:

CAF' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 7
Current: 7

During the past 7 years, the highest Piotroski F-Score of Morgan Stanley China A Share Fund was 7. The lowest was 2. And the median was 4.


Morgan Stanley China A Share Fund Piotroski F-Score Historical Data

The historical data trend for Morgan Stanley China A Share Fund's Piotroski F-Score 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.

* Premium members only.

Morgan Stanley China A Share Fund Piotroski F-Score Chart

Morgan Stanley China A Share Fund Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial 5.00 2.00 4.00 3.00 7.00

Morgan Stanley China A Share Fund Semi-Annual Data
Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 - 3.00 - 7.00

Competitive Comparison of Morgan Stanley China A Share Fund's Piotroski F-Score

For the Asset Management subindustry, Morgan Stanley China A Share Fund's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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.


Morgan Stanley China A Share Fund's Piotroski F-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Morgan Stanley China A Share Fund's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Morgan Stanley China A Share Fund's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was $-45.74 Mil.
Cash Flow from Operations was $0.00 Mil.
Revenue was $-44.70 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was (374.192 + 323.46) / 2 = $348.826 Mil.
Total Assets at the begining of this year (Dec22) was $374.19 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Total Assets was $323.46 Mil.
Total Liabilities was $0.52 Mil.
Net Income was $-132.54 Mil.

Revenue was $-131.36 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was (507.241 + 374.192) / 2 = $440.7165 Mil.
Total Assets at the begining of last year (Dec21) was $507.24 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Total Assets was $374.19 Mil.
Total Liabilities was $0.76 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Morgan Stanley China A Share Fund's current Net Income (TTM) was -45.74. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Morgan Stanley China A Share Fund's current Cash Flow from Operations (TTM) was 0.00. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=-45.738/374.192
=-0.12223137

ROA (Last Year)=Net Income/Total Assets (Dec21)
=-132.543/507.241
=-0.26130183

Morgan Stanley China A Share Fund's return on assets of this year was -0.12223137. Morgan Stanley China A Share Fund's return on assets of last year was -0.26130183. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Morgan Stanley China A Share Fund's current Net Income (TTM) was -45.74. Morgan Stanley China A Share Fund's current Cash Flow from Operations (TTM) was 0.00. ==> 0.00 > -45.74 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=0/348.826
=0

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=0/440.7165
=0

Morgan Stanley China A Share Fund's gearing of this year was 0. Morgan Stanley China A Share Fund's gearing of last year was 0. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Dec23)=Total Assets/Total Liabilities
=323.46/0.519
=623.23699422

Current Ratio (Last Year: Dec22)=Total Assets/Total Liabilities
=374.192/0.757
=494.30911493

Morgan Stanley China A Share Fund's current ratio of this year was 623.23699422. Morgan Stanley China A Share Fund's current ratio of last year was 494.30911493. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Morgan Stanley China A Share Fund's number of shares in issue this year was 21.78. Morgan Stanley China A Share Fund's number of shares in issue last year was 21.872. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=-45.738/-44.703
=1.02315281

Net Margin (Last Year: TTM)=Net Income/Revenue
=-132.543/-131.363
=1.00898274

Morgan Stanley China A Share Fund's net margin of this year was 1.02315281. Morgan Stanley China A Share Fund's net margin of last year was 1.00898274. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=-44.703/374.192
=-0.11946541

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=-131.363/507.241
=-0.25897552

Morgan Stanley China A Share Fund's asset turnover of this year was -0.11946541. Morgan Stanley China A Share Fund's asset turnover of last year was -0.25897552. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+0+1+1+1+1+1+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Morgan Stanley China A Share Fund has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Morgan Stanley China A Share Fund  (NYSE:CAF) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Morgan Stanley China A Share Fund Piotroski F-Score Related Terms

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Morgan Stanley China A Share Fund (Morgan Stanley China A Share Fund) Business Description

Traded in Other Exchanges
N/A
Address
522 Fifth Avenue, New York, NY, USA, 10036
Morgan Stanley China A Share Fund Inc is the United States based non-diversified, closed-end management investment company. Its investment objective is to seek capital growth by investing a majority of its assets in A-shares of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. Its portfolio of investments consists of investment in different sectors such as the aerospace and defense, banks, automobiles, household durables, media, pharmaceuticals, software and other sectors.
Executives
Michael J Key officer: Vice President 1633 BROADWAY, 29TH FLOOR, NEW YORK NY 10019
Frances Cashman other: Advisory Board Member MORGAN STANLEY INVESTMENT MANAGEMENT, 1633 BROADWAY 29TH FLOOR, NEW YORK NY 10019
Eddie Arthur Grier other: Advisory Board Member 11700 PLAZA AMERICA DRIVE, SUITE 500, RESTON VA 20190
Deidre Downes officer: Chief Compliance Officer 1633 BROADWAY, 29TH FLOOR, NEW YORK NY 10019
Amay Ashok Hattangadi officer: Portfolio Manager 522 5TH AVENUE, NEW YORK NY 10036
Leon Sun officer: Portfolio Manager 522 5TH AVENUE, NEW YORK NY 10036
Patricia A Maleski director C/O J P MORGAN INVESTMENT MANAGEMENT INC, 522 FIFTH AVENUE, NEW YORK NY 10036
Timothy J Knierim officer: CCO 100 MULBERRY STREET, NEWARK NJ 07102
Jakki L. Haussler director 221 EAST FOURTH STREET, CINCINNATI OH 45202
Nancy Everett director 1812 PARK AVE, RICHMOND VA 23220
Joseph C Benedetti officer: Vice President C/O INVESCO, 225 LIBERTY STREET, NEW YORK NY 10281
John H Gernon officer: Principle Executive Officer 522 5TH AVENUE, NEW YORK NY 10036
Samuel Gene Rhee other: Portfolio Manager 522 FIFTH AVENUE 19TH FLOOR, NEW YORK NY 10036
May Yu other: Portfolio Manager MORGAN STANLEY INVESTMENT MANAGEMENT INC, 522 5TH AVENUE, NEW YORK X1 10036
Kar Heng Cheung other: Portfolio Manager 522 FIFTH AVENUE 19TH FLOOR, NEW YORK NY 10036

Morgan Stanley China A Share Fund (Morgan Stanley China A Share Fund) Headlines