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Assa Abloy AB (OTCPK:ASAZY)
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

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

ASAZY' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Max: 9
Current: 7

5
9

During the past 13 years, the highest Piotroski F-Score of Assa Abloy AB was 9. The lowest was 5. 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 own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was 0 + 189.120868833 + 228.424860562 + 247.313498847 = $665 Mil.
Cash Flow from Operations was 415.525174009 + 7.37290515869 + 228.182885074 + 342.222594102 = $993 Mil.
Revenue was 0 + 1784.94522985 + 2066.71264201 + 2087.64149703 = $5,939 Mil.
Gross Profit was 0 + 698.553506226 + 801.301828125 + 807.803105464 = $2,308 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(10382.5979636 + 10486.1775616 + 10165.1296695 + 10423.9410548 + 10459.3648024) / 5 = $10383.4422104 Mil.
Total Assets at the begining of this year (Sep14) was $10,383 Mil.
Long-Term Debt was $2,086 Mil.
Total Current Assets was $2,982 Mil.
Total Current Liabilities was $2,463 Mil.
Net Income was 0 + 197.161129309 + 229.438071165 + 245.294662141 = $672 Mil.

Revenue was 0 + 1919.35735455 + 2088.57446268 + 2065.43995961 = $6,073 Mil.
Gross Profit was 0 + 747.30931212 + 802.883680582 + 797.873832431 = $2,348 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(9289.36825886 + 10066.2788918 + 10558.4152238 + 10576.5865478 + 10382.5979636) / 5 = $10174.6493772 Mil.
Total Assets at the begining of last year (Sep13) was $9,289 Mil.
Long-Term Debt was $2,002 Mil.
Total Current Assets was $2,955 Mil.
Total Current Liabilities was $2,760 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.

Assa Abloy AB's current net income (TTM) was 665. ==> 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.

Assa Abloy AB's current cash flow from operations (TTM) was 993. ==> 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 (Sep14)
=664.859228241/10382.5979636
=0.06403592

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=671.893862615/9289.36825886
=0.07232934

Assa Abloy AB's return on assets of this year was 0.06403592. Assa Abloy AB's return on assets of last year was 0.07232934. ==> 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.

Assa Abloy AB's current net income (TTM) was 665. Assa Abloy AB's current cash flow from operations (TTM) was 993. ==> 993 > 665 ==> 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: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=2086.20710264/10383.4422104
=0.20091672

Gearing (Last Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=2001.62688284/10174.6493772
=0.19672687

Assa Abloy AB's gearing of this year was 0.20091672. Assa Abloy AB's gearing of last year was 0.19672687. ==> 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: Sep15)=Total Current Assets/Total Current Liabilities
=2981.74733143/2462.73562916
=1.21074601

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=2955.03632437/2760.23112956
=1.07057568

Assa Abloy AB's current ratio of this year was 1.21074601. Assa Abloy AB's current ratio of last year was 1.07057568. ==> 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.

Assa Abloy AB's number of shares in issue this year was 0. Assa Abloy AB's number of shares in issue last year was 740.5. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=2307.65843981/5939.29936889
=0.38854052

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2348.06682513/6073.37177683
=0.38661668

Assa Abloy AB's gross margin of this year was 0.38854052. Assa Abloy AB's gross margin of last year was 0.38661668. ==> 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 (Sep14)
=5939.29936889/10382.5979636
=0.57204366

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=6073.37177683/9289.36825886
=0.65379815

Assa Abloy AB's asset turnover of this year was 0.57204366. Assa Abloy AB's asset turnover of last year was 0.65379815. ==> 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+0+1+1+1+0
=6

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

Assa Abloy AB 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.

Assa Abloy AB Annual Data

Dec11Dec12Dec13Dec14
Question 1 1111
Question 2 1111
Question 3 1100
Question 4 1111
Question 5 1011
Question 6 0111
Question 7 0100
Question 8 0110
Question 9 1001
F-score 6766

Assa Abloy AB Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Question 1 1111111111
Question 2 1111111111
Question 3 1100000000
Question 4 1111111111
Question 5 0010001110
Question 6 1110111111
Question 7 0101110100
Question 8 1110000001
Question 9 1000001000
F-score 7764556655
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