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AECOM Technology Corp (NYSE:ACM)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

AECOM Technology Corp has an F-score of 7 indicating the company's financial situation is typical for a stable company.

ACM' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 7

3
8

During the past 12 years, the highest Piotroski F-Score of AECOM Technology 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 69.24 + 40.192 + 56.396 + 76.568 = $242 Mil.
Cash Flow from Operations was 79.713 + -31.391 + 137.387 + 160.147 = $346 Mil.
Revenue was 1968.155 + 1872.224 + 1953.875 + 2079.087 = $7,873 Mil.
Gross Profit was 108.54 + 87.407 + 78.198 + 140.213 = $414 Mil.
Total Assets at the begining of this year (Jun13) was $5,539 Mil.
Total Assets was $5,754 Mil.
Long-Term Debt was $977 Mil.
Total Current Assets was $3,122 Mil.
Total Current Liabilities was $2,054 Mil.
Net Income was 70.755 + 53.811 + 38.109 + -224.905 = $-62 Mil.

Revenue was 2067.49 + 1989.646 + 2017.272 + 2082.911 = $8,157 Mil.
Gross Profit was 131.814 + 99.843 + 78.118 + 144.158 = $454 Mil.
Total Assets at the begining of last year (Jun12) was $5,864 Mil.
Total Assets was $5,539 Mil.
Long-Term Debt was $1,135 Mil.
Total Current Assets was $3,050 Mil.
Total Current Liabilities was $1,942 Mil.

Profitability

Q1. 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 Technology Corp's current net income was 242. ==> Positive ==> Score 1.

Q2. 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 Technology Corp's current cash flow from operations was 346. ==> Positive ==> Score 1.

Q3. 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 at the beginning of this year (Jun13)
=242.396/5539.368
=0.04375878

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=-62.23/5863.64
=-0.01061286

AECOM Technology Corp's return on assets of this year was 0.04375878. AECOM Technology Corp's return on assets of last year was -0.01061286. ==> This year is higher. ==> Score 1.

Q4. 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 Technology Corp's current net income was 242. AECOM Technology Corp's current cash flow from operations was 346. ==> 346 > 242 ==> CFROA > ROA ==> Score 1.

Funding

Q5. 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)=Long-Term Debt/Total Assets
=976.963/5753.742
=0.16979611

Gearing (Last Year)=Long-Term Debt/Total Assets
=1135.226/5539.368
=0.20493782

AECOM Technology Corp's gearing of this year was 0.16979611. AECOM Technology Corp's gearing of last year was 0.20493782. ==> This year is lower or equal to last year. ==> Score 1.

Q6. 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)=Total Current Assets/Total Current Liabilities
=3121.81/2053.86
=1.51997215

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=3049.684/1941.556
=1.57074223

AECOM Technology Corp's current ratio of this year was 1.51997215. AECOM Technology Corp's current ratio of last year was 1.57074223. ==> Last year's current ratio is higher ==> Score 0.

Q7. 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 Technology Corp's number of shares in issue this year was 99. AECOM Technology Corp's number of shares in issue last year was 100.8. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Q8. 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)=Gross Profit/Revenue
=414.358/7873.341
=0.05262798

Gross Margin (Last Year)=Gross Profit/Revenue
=453.933/8157.319
=0.05564733

AECOM Technology Corp's gross margin of this year was 0.05262798. AECOM Technology Corp's gross margin of last year was 0.05564733. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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 (Jun13)
=7873.341/5539.368
=1.42134283

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=8157.319/5863.64
=1.39116982

AECOM Technology Corp's asset turnover of this year was 1.42134283. AECOM Technology Corp's asset turnover of last year was 1.39116982. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+1+0+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

AECOM Technology Corp has an F-score of 7 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 own currency.

AECOM Technology Corp Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Q1 1111101
Q2 1111111
Q3 1101001
Q4 1110011
Q5 1010010
Q6 1001101
Q7 0000011
Q8 1011001
Q9 0001001
F-score 7456348

AECOM Technology Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1100001111
Q2 1111111111
Q3 0000001111
Q4 1111111111
Q5 1111000011
Q6 0000011100
Q7 1111111111
Q8 0000111110
Q9 0000001111
F-score 5544458887
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