Switch to:
GuruFocus has detected 4 Warning Signs with Apollo Education Group Inc $APOL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Apollo Education Group Inc (NAS:APOL)
Piotroski F-Score
4 (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

Apollo Education Group Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

APOL' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 4

2
8

During the past 13 years, the highest Piotroski F-Score of Apollo Education Group Inc was 8. The lowest was 2. 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 (Nov16) TTM:Last Year (Nov15) TTM:
Net Income was -60.396 + 20.744 + 15.863 + 4.07 = $-20 Mil.
Cash Flow from Operations was 41.95 + -13.45 + 35.451 + 16.454 = $80 Mil.
Revenue was 465.348 + 558.002 + 492.479 + 484.499 = $2,000 Mil.
Gross Profit was 194.708 + 283.516 + 231.777 + 235.746 = $946 Mil.
Average Total Assets from the begining of this year (Nov15)
to the end of this year (Nov16) was
(2046.578 + 2110.321 + 2037.626 + 2012.906 + 1955.243) / 5 = $2032.5348 Mil.
Total Assets at the begining of this year (Nov15) was $2,047 Mil.
Long-Term Debt was $33 Mil.
Total Current Assets was $1,082 Mil.
Total Current Liabilities was $681 Mil.
Net Income was -33.61 + 48.064 + -18.484 + -60.765 = $-65 Mil.

Revenue was 575.103 + 676.358 + 600.291 + 586.021 = $2,438 Mil.
Gross Profit was 284.17 + 381.517 + 300.104 + 294.694 = $1,260 Mil.
Average Total Assets from the begining of last year (Nov14)
to the end of last year (Nov15) was
(2422.288 + 2405.941 + 2351.441 + 2201.064 + 2046.578) / 5 = $2285.4624 Mil.
Total Assets at the begining of last year (Nov14) was $2,422 Mil.
Long-Term Debt was $21 Mil.
Total Current Assets was $1,185 Mil.
Total Current Liabilities was $751 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.

Apollo Education Group Inc's current net income (TTM) was -20. ==> 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.

Apollo Education Group Inc's current cash flow from operations (TTM) was 80. ==> 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 (Nov15)
=-19.719/2046.578
=-0.00963511

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Nov14)
=-64.795/2422.288
=-0.0267495

Apollo Education Group Inc's return on assets of this year was -0.00963511. Apollo Education Group Inc's return on assets of last year was -0.0267495. ==> 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.

Apollo Education Group Inc's current net income (TTM) was -20. Apollo Education Group Inc's current cash flow from operations (TTM) was 80. ==> 80 > -20 ==> 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: Nov16)=Long-Term Debt/Average Total Assets from Nov15 to Nov16
=33.251/2032.5348
=0.01635938

Gearing (Last Year: Nov15)=Long-Term Debt/Average Total Assets from Nov14 to Nov15
=20.782/2285.4624
=0.00909313

Apollo Education Group Inc's gearing of this year was 0.01635938. Apollo Education Group Inc's gearing of last year was 0.00909313. ==> 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: Nov16)=Total Current Assets/Total Current Liabilities
=1081.689/681.106
=1.58813606

Current Ratio (Last Year: Nov15)=Total Current Assets/Total Current Liabilities
=1184.991/751.491
=1.57685322

Apollo Education Group Inc's current ratio of this year was 1.58813606. Apollo Education Group Inc's current ratio of last year was 1.57685322. ==> 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.

Apollo Education Group Inc's number of shares in issue this year was 110.2. Apollo Education Group Inc's number of shares in issue last year was 108.4. ==> 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
=945.747/2000.328
=0.47279596

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1260.485/2437.773
=0.51706414

Apollo Education Group Inc's gross margin of this year was 0.47279596. Apollo Education Group Inc's gross margin of last year was 0.51706414. ==> 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 (Nov15)
=2000.328/2046.578
=0.9774013

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Nov14)
=2437.773/2422.288
=1.00639272

Apollo Education Group Inc's asset turnover of this year was 0.9774013. Apollo Education Group Inc's asset turnover of last year was 1.00639272. ==> 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+1+1+0+1+0+0+0
=4

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

Apollo Education Group Inc has an F-score of 4 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.

Apollo Education Group Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
Question 1 1111111110
Question 2 1111111111
Question 3 0100000000
Question 4 1111111111
Question 5 1001011110
Question 6 0101101011
Question 7 1111111111
Question 8 0111000000
Question 9 1100000001
F-score 6857556565

Apollo Education Group Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
Question 1 1111100000
Question 2 1111111111
Question 3 0000000001
Question 4 1111111111
Question 5 1100110000
Question 6 0011100011
Question 7 1111110010
Question 8 0000000000
Question 9 0000000010
F-score 5555642254
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