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AmerisourceBergen Corp (NYSE:ABC)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

AmerisourceBergen Corp has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

ABC' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 3

3
8

During the past 13 years, the highest Piotroski F-Score of AmerisourceBergen Corp was 8. The lowest was 3. And the median was 5.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was 67.802 + -199.947 + -513.39 + 214.163 = $-431 Mil.
Cash Flow from Operations was 830.658 + 896.964 + 741.72 + 1121.581 = $3,591 Mil.
Revenue was 31588.708 + 33588.602 + 32669.267 + 34233.556 = $132,080 Mil.
Gross Profit was 872.544 + 752.299 + 911.976 + 891.464 = $3,428 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(20630.606 + 21532.183 + 24904.916 + 27005.53 + 27333.504) / 5 = $24281.3478 Mil.
Total Assets at the begining of this year (Jun14) was $20,631 Mil.
Long-Term Debt was $3,743 Mil.
Total Current Assets was $19,902 Mil.
Total Current Liabilities was $21,117 Mil.
Net Income was 51.023 + 41.385 + 180.077 + -12.78 = $260 Mil.

Revenue was 24469.04 + 29176.362 + 28455.903 + 30348.154 = $112,449 Mil.
Gross Profit was 567.552 + 688.225 + 729.593 + 692.004 = $2,677 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(16579.332 + 18918.638 + 19796.095 + 20361.247 + 20630.606) / 5 = $19257.1836 Mil.
Total Assets at the begining of last year (Jun13) was $16,579 Mil.
Long-Term Debt was $1,995 Mil.
Total Current Assets was $15,891 Mil.
Total Current Liabilities was $16,339 Mil.

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.

AmerisourceBergen Corp's current net income (TTM) was -431. ==> 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.

AmerisourceBergen Corp's current cash flow from operations (TTM) was 3,591. ==> Positive ==> Score 1.

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 (TTM)/Total Assets at the Beginning of This Year (Jun14)
=-431.372/20630.606
=-0.02090932

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=259.705/16579.332
=0.01566438

AmerisourceBergen Corp's return on assets of this year was -0.02090932. AmerisourceBergen Corp's return on assets of last year was 0.01566438. ==> Last year is higher ==> Score 0.

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.

AmerisourceBergen Corp's current net income (TTM) was -431. AmerisourceBergen Corp's current cash flow from operations (TTM) was 3,591. ==> 3,591 > -431 ==> 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: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=3742.781/24281.3478
=0.15414223

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=1995.482/19257.1836
=0.10362273

AmerisourceBergen Corp's gearing of this year was 0.15414223. AmerisourceBergen Corp's gearing of last year was 0.10362273. ==> Last year is lower than this year ==> Score 0.

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

Current Ratio (This Year: Jun15)=Total Current Assets/Total Current Liabilities
=19902.034/21117.291
=0.94245204

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=15891.386/16339.359
=0.9725832

AmerisourceBergen Corp's current ratio of this year was 0.94245204. AmerisourceBergen Corp's current ratio of last year was 0.9725832. ==> Last year's current ratio is higher ==> Score 0.

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.

AmerisourceBergen Corp's number of shares in issue this year was 240.2. AmerisourceBergen Corp's number of shares in issue last year was 225.7. ==> There is larger number of shares in issue this year. ==> Score 0.

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.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3428.283/132080.133
=0.02595608

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2677.374/112449.459
=0.02380958

AmerisourceBergen Corp's gross margin of this year was 0.02595608. AmerisourceBergen Corp's gross margin of last year was 0.02380958. ==> This year's gross 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 (TTM)/Total Assets at the Beginning of This Year (Jun14)
=132080.133/20630.606
=6.40214509

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=112449.459/16579.332
=6.78250843

AmerisourceBergen Corp's asset turnover of this year was 6.40214509. AmerisourceBergen Corp's asset turnover of last year was 6.78250843. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

AmerisourceBergen Corp has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

AmerisourceBergen Corp Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
Question 1 1111111111
Question 2 1111111111
Question 3 0100111000
Question 4 1111111111
Question 5 1000101010
Question 6 0000010001
Question 7 1111111111
Question 8 0100111100
Question 9 1100100011
F-score 6744877566

AmerisourceBergen Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 1111111100
Question 2 1111111111
Question 3 0000000000
Question 4 1110011111
Question 5 1111100000
Question 6 0000001110
Question 7 1110011110
Question 8 1100000011
Question 9 0011111100
F-score 6664456653
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