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Andersons Inc (NAS:ANDE)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

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

ANDE' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 6

3
8

During the past 13 years, the highest Piotroski F-Score of Andersons Inc 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 44.301 + 22.708 + 30.661 + 17.161 = $115 Mil.
Cash Flow from Operations was 239.028 + -498.613 + 208.227 + 188.63 = $137 Mil.
Revenue was 1312.082 + 1003.294 + 1584.266 + 1181.374 = $5,081 Mil.
Gross Profit was 121.495 + 76.775 + 109.577 + 73.146 = $381 Mil.
Total Assets at the begining of this year (Jun13) was $1,821 Mil.
Total Assets was $1,893 Mil.
Long-Term Debt was $300 Mil.
Total Current Assets was $865 Mil.
Total Current Liabilities was $613 Mil.
Net Income was 29.539 + 12.578 + 14.99 + 16.884 = $74 Mil.

Revenue was 1566.964 + 1271.97 + 1680.641 + 1138.402 = $5,658 Mil.
Gross Profit was 103.229 + 79.273 + 91.169 + 78.316 = $352 Mil.
Total Assets at the begining of last year (Jun12) was $1,795 Mil.
Total Assets was $1,821 Mil.
Long-Term Debt was $409 Mil.
Total Current Assets was $907 Mil.
Total Current Liabilities was $598 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.

Andersons Inc's current net income was 115. ==> 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.

Andersons Inc's current cash flow from operations was 137. ==> 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)
=114.831/1820.981
=0.06305997

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=73.991/1794.774
=0.0412258

Andersons Inc's return on assets of this year was 0.06305997. Andersons Inc's return on assets of last year was 0.0412258. ==> 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.

Andersons Inc's current net income was 115. Andersons Inc's current cash flow from operations was 137. ==> 137 > 115 ==> 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
=300.22/1892.628
=0.158626

Gearing (Last Year)=Long-Term Debt/Total Assets
=409.02/1820.981
=0.22461519

Andersons Inc's gearing of this year was 0.158626. Andersons Inc's gearing of last year was 0.22461519. ==> 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
=865.193/613.216
=1.41091067

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=907.269/598.344
=1.51629999

Andersons Inc's current ratio of this year was 1.41091067. Andersons Inc's current ratio of last year was 1.51629999. ==> 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.

Andersons Inc's number of shares in issue this year was 28.3. Andersons Inc's number of shares in issue last year was 28.2. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=380.993/5081.016
=0.07498363

Gross Margin (Last Year)=Gross Profit/Revenue
=351.987/5657.977
=0.06221075

Andersons Inc's gross margin of this year was 0.07498363. Andersons Inc's gross margin of last year was 0.06221075. ==> This year's gross margin is higher. ==> Score 1.

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)
=5081.016/1820.981
=2.79026305

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=5657.977/1794.774
=3.15247324

Andersons Inc's asset turnover of this year was 2.79026305. Andersons Inc's asset turnover of last year was 3.15247324. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+0+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Andersons Inc 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 own currency.

Andersons Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1100110111
Q3 1111011100
Q4 1100110111
Q5 0111011101
Q6 1010110100
Q7 0000000000
Q8 1100010000
Q9 0011001110
F-score 6654474744

Andersons Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0000000011
Q4 1101111111
Q5 1010000111
Q6 1000011000
Q7 0000000000
Q8 0000000011
Q9 0011110000
F-score 5344454466
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