Switch to:
GuruFocus has detected 3 Warning Signs with Acadia Healthcare Co Inc $ACHC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Acadia Healthcare Co Inc (NAS:ACHC)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

Acadia Healthcare Co Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

ACHC' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Max: 7
Current: 5

5
7

During the past 7 years, the highest Piotroski F-Score of Acadia Healthcare Co Inc was 7. The lowest was 5. 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 local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was 25.688 + 56.445 + -117.808 + 41.818 = $6 Mil.
Cash Flow from Operations was 58.664 + 124.194 + 76.799 + 101.821 = $361 Mil.
Revenue was 616.813 + 756.548 + 734.665 + 702.888 = $2,811 Mil.
Gross Profit was 249.1 + 317.052 + 295.868 + 289.615 = $1,152 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(4279.208 + 6696.359 + 6684.499 + 6452.978 + 6024.726) / 5 = $6027.554 Mil.
Total Assets at the begining of this year (Dec15) was $4,279 Mil.
Long-Term Debt was $3,253 Mil.
Total Current Assets was $428 Mil.
Total Current Liabilities was $343 Mil.
Net Income was 14.594 + 33.844 + 29.55 + 34.566 = $113 Mil.

Revenue was 365.783 + 453.66 + 479.73 + 495.319 = $1,794 Mil.
Gross Profit was 143.658 + 189.816 + 199.686 + 206.937 = $740 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(2206.955 + 3627.145 + 3926.385 + 4145.239 + 4279.208) / 5 = $3636.9864 Mil.
Total Assets at the begining of last year (Dec14) was $2,207 Mil.
Long-Term Debt was $2,195 Mil.
Total Current Assets was $295 Mil.
Total Current Liabilities was $290 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.

Acadia Healthcare Co Inc's current net income (TTM) was 6. ==> Positive ==> Score 1.

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.

Acadia Healthcare Co Inc's current cash flow from operations (TTM) was 361. ==> 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 (Dec15)
=6.143/4279.208
=0.00143555

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=112.554/2206.955
=0.05099968

Acadia Healthcare Co Inc's return on assets of this year was 0.00143555. Acadia Healthcare Co Inc's return on assets of last year was 0.05099968. ==> 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.

Acadia Healthcare Co Inc's current net income (TTM) was 6. Acadia Healthcare Co Inc's current cash flow from operations (TTM) was 361. ==> 361 > 6 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=3253.004/6027.554
=0.5396889

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=2195.384/3636.9864
=0.60362722

Acadia Healthcare Co Inc's gearing of this year was 0.5396889. Acadia Healthcare Co Inc's gearing of last year was 0.60362722. ==> 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

Current Ratio (This Year: Dec16)=Total Current Assets/Total Current Liabilities
=427.927/342.865
=1.24809181

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=294.736/290.203
=1.0156201

Acadia Healthcare Co Inc's current ratio of this year was 1.24809181. Acadia Healthcare Co Inc's current ratio of last year was 1.0156201. ==> 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.

Acadia Healthcare Co Inc's number of shares in issue this year was 86. Acadia Healthcare Co Inc's number of shares in issue last year was 68.4. ==> 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
=1151.635/2810.914
=0.40970126

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=740.097/1794.492
=0.41242703

Acadia Healthcare Co Inc's gross margin of this year was 0.40970126. Acadia Healthcare Co Inc's gross margin of last year was 0.41242703. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec15)
=2810.914/4279.208
=0.65687716

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=1794.492/2206.955
=0.81310765

Acadia Healthcare Co Inc's asset turnover of this year was 0.65687716. Acadia Healthcare Co Inc's asset turnover of last year was 0.81310765. ==> 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
=1+1+0+1+1+1+0+0+0
=5

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

Acadia Healthcare Co Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.


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 local exchange's currency.

Acadia Healthcare Co Inc Annual Data

Dec13Dec14Dec15Dec16
Question 1 1111
Question 2 1111
Question 3 0100
Question 4 1111
Question 5 1011
Question 6 0101
Question 7 0000
Question 8 1110
Question 9 0100
F-score 5755

Acadia Healthcare Co Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 1111111101
Question 2 1111111111
Question 3 1111000000
Question 4 1111111111
Question 5 0000111111
Question 6 1100000001
Question 7 0000000000
Question 8 0111111110
Question 9 0111000000
F-score 5766555545
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK