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Yamana Gold Inc (NYSE:AUY)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Yamana Gold Inc has an F-score of 3 indicating the company's financial situation is typical for a stable company.

AUY' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 3

2
8

During the past 13 years, the highest Piotroski F-Score of Yamana Gold Inc was 8. The lowest was 2. And the median was 4.


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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was -583.894 + 43.45 + -7.898 + 102.096 = $-446 Mil.
Cash Flow from Operations was 184.842 + 99.078 + 195.418 + 173.801 = $653 Mil.
Revenue was 420.663 + 456.675 + 430.471 + 534.873 = $1,843 Mil.
Gross Profit was 70.113 + 144.01 + 118.646 + 208.009 = $541 Mil.
Total Assets at the begining of this year (Dec12) was $11,800 Mil.
Total Assets was $11,411 Mil.
Long-Term Debt was $1,190 Mil.
Total Current Assets was $718 Mil.
Total Current Liabilities was $637 Mil.
Net Income was 169.162 + 59.965 + 42.913 + 170.025 = $442 Mil.

Revenue was 629.505 + 611.807 + 535.705 + 559.745 = $2,337 Mil.
Gross Profit was 322.083 + 279.158 + 239.896 + 280.134 = $1,121 Mil.
Total Assets at the begining of last year (Dec11) was $10,770 Mil.
Total Assets was $11,800 Mil.
Long-Term Debt was $766 Mil.
Total Current Assets was $924 Mil.
Total Current Liabilities was $669 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.

Yamana Gold Inc's current net income was -446. ==> Negative ==> Score 0.

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.

Yamana Gold Inc's current cash flow from operations was 653. ==> 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 (Dec12)
=-446.246/11800.163
=-0.03781694

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=442.065/10769.94
=0.04104619

Yamana Gold Inc's return on assets of this year was -0.03781694. Yamana Gold Inc's return on assets of last year was 0.04104619. ==> Last year is higher ==> Score 0.

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.

Yamana Gold Inc's current net income was -446. Yamana Gold Inc's current cash flow from operations was 653. ==> 653 > -446 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=1189.762/11410.717
=0.10426707

Gearing (Last Year)=Long-Term Debt/Total Assets
=765.912/11800.163
=0.0649069

Yamana Gold Inc's gearing of this year was 0.10426707. Yamana Gold Inc's gearing of last year was 0.0649069. ==> Last year is lower ==> Score 0.

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
=718.463/637.37
=1.12723065

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=924.153/669.019
=1.38135539

Yamana Gold Inc's current ratio of this year was 1.12723065. Yamana Gold Inc's current ratio of last year was 1.38135539. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Yamana Gold Inc's number of shares in issue this year was 753. Yamana Gold Inc's number of shares in issue last year was 753.5. ==> There is the same number of shares in issue this year, or fewer. ==> 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
=540.778/1842.682
=0.29347332

Gross Margin (Last Year)=Gross Profit/Revenue
=1121.271/2336.762
=0.47983962

Yamana Gold Inc's gross margin of this year was 0.29347332. Yamana Gold Inc's gross margin of last year was 0.47983962. ==> 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 (Dec12)
=1842.682/11800.163
=0.15615733

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=2336.762/10769.94
=0.21697075

Yamana Gold Inc's asset turnover of this year was 0.15615733. Yamana Gold Inc's asset turnover of last year was 0.21697075. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+0+1+0+0+1+0+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Yamana Gold Inc has an F-score of 3 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.

Yamana Gold Inc Annual Data

Feb04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1001111110
Q2 1101111111
Q3 1001001100
Q4 1111011111
Q5 0010101100
Q6 1000111000
Q7 1000000000
Q8 1011011100
Q9 1000011110
F-score 8235468742

Yamana Gold Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111110
Q2 1111111111
Q3 1110000000
Q4 1111111111
Q5 1100000000
Q6 1001000000
Q7 0000000001
Q8 1110000000
Q9 1111110000
F-score 8765443333
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