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AECOM (NYSE:ACM)
Piotroski F-Score
6 (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

AECOM has an F-score of 6 indicating the company's financial situation is typical for a stable company.

ACM' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 6

3
8

During the past 13 years, the highest Piotroski F-Score of AECOM was 8. The lowest was 3. And the median was 6.


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 (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was -20.367 + 41.828 + 67.444 + 7.204 = $96 Mil.
Cash Flow from Operations was 78.055 + 113.151 + 260.05 + 362.899 = $814 Mil.
Revenue was 4297.651 + 4381.296 + 4408.782 + 4323.096 = $17,411 Mil.
Gross Profit was 140.858 + 183.444 + 171.343 + 147.179 = $643 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(14014.298 + 13529.403 + 13989.215 + 13878.327 + 13726.745) / 5 = $13827.5976 Mil.
Total Assets at the begining of this year (Sep15) was $14,014 Mil.
Long-Term Debt was $3,759 Mil.
Total Current Assets was $6,001 Mil.
Total Current Liabilities was $5,305 Mil.
Net Income was -138.975 + 0.266 + -17.192 + 1.056 = $-155 Mil.

Revenue was 4210.468 + 4506.197 + 4549.578 + 4723.637 = $17,990 Mil.
Gross Profit was 134.73 + 103.312 + 126.518 + 170.628 = $535 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(6123.377 + 14253.269 + 14016.005 + 14236.126 + 14014.298) / 5 = $12528.615 Mil.
Total Assets at the begining of last year (Sep14) was $6,123 Mil.
Long-Term Debt was $4,447 Mil.
Total Current Assets was $6,246 Mil.
Total Current Liabilities was $4,836 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.

AECOM's current net income (TTM) was 96. ==> 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.

AECOM's current cash flow from operations (TTM) was 814. ==> 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 (Sep15)
=96.109/14014.298
=0.00685792

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=-154.845/6123.377
=-0.02528752

AECOM's return on assets of this year was 0.00685792. AECOM's return on assets of last year was -0.02528752. ==> 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.

AECOM's current net income (TTM) was 96. AECOM's current cash flow from operations (TTM) was 814. ==> 814 > 96 ==> 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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=3758.966/13827.5976
=0.2718452

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=4446.527/12528.615
=0.3549097

AECOM's gearing of this year was 0.2718452. AECOM's gearing of last year was 0.3549097. ==> 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: Sep16)=Total Current Assets/Total Current Liabilities
=6000.771/5304.756
=1.13120585

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=6246.085/4836.052
=1.29156696

AECOM's current ratio of this year was 1.13120585. AECOM's current ratio of last year was 1.29156696. ==> 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.

AECOM's number of shares in issue this year was 156.1. AECOM's number of shares in issue last year was 149.6. ==> 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
=642.824/17410.825
=0.03692094

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=535.188/17989.88
=0.02974939

AECOM's gross margin of this year was 0.03692094. AECOM's gross margin of last year was 0.02974939. ==> 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 (Sep15)
=17410.825/14014.298
=1.24236155

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=17989.88/6123.377
=2.93790175

AECOM's asset turnover of this year was 1.24236155. AECOM's asset turnover of last year was 2.93790175. ==> 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+1+1+1+0+0+1+0
=6

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

AECOM has an F-score of 6 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.

AECOM Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
Question 1 1111101101
Question 2 1111111111
Question 3 1101001001
Question 4 1110011111
Question 5 1010110101
Question 6 1001101000
Question 7 0000011100
Question 8 0011001001
Question 9 0001001110
F-score 6456448636

AECOM Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1110000111
Question 2 1111111111
Question 3 1000000111
Question 4 1111111111
Question 5 1100001111
Question 6 0000000000
Question 7 1100000000
Question 8 0000000011
Question 9 1111110000
F-score 7643333566
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