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Acuity Brands Inc (NYSE:AYI)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, 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

Acuity Brands Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

AYI' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of Acuity Brands Inc was 9. The lowest was 3. And the median was 7.


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 (Feb14) TTM:Last Year (Feb13) TTM:
Net Income was 32.7 + 44.5 + 44.9 + 31.7 = $154 Mil.
Cash Flow from Operations was 14 + 43.4 + 64.5 + 68.1 = $190 Mil.
Revenue was 546.2 + 574.7 + 579.8 + 541.5 = $2,242 Mil.
Gross Profit was 215.2 + 237.1 + 237.3 + 221.1 = $911 Mil.
Total Assets at the begining of this year (Feb13) was $1,742 Mil.
Total Assets was $1,972 Mil.
Long-Term Debt was $354 Mil.
Total Current Assets was $991 Mil.
Total Current Liabilities was $367 Mil.
Net Income was 24.7 + 26.1 + 33.2 + 33.6 = $118 Mil.

Revenue was 486.7 + 481.1 + 514.2 + 487.5 = $1,970 Mil.
Gross Profit was 189.7 + 189.5 + 210.4 + 202 = $792 Mil.
Total Assets at the begining of last year (Feb12) was $1,598 Mil.
Total Assets was $1,742 Mil.
Long-Term Debt was $354 Mil.
Total Current Assets was $784 Mil.
Total Current Liabilities was $313 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.

Acuity Brands Inc's current net income was 154. ==> 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.

Acuity Brands Inc's current cash flow from operations was 190. ==> 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 (Feb13)
=153.8/1742.4
=0.08826905

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Feb12)
=117.6/1597.9
=0.0735966

Acuity Brands Inc's return on assets of this year was 0.08826905. Acuity Brands Inc's return on assets of last year was 0.0735966. ==> 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.

Acuity Brands Inc's current net income was 154. Acuity Brands Inc's current cash flow from operations was 190. ==> 190 > 154 ==> 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
=353.6/1972.3
=0.17928307

Gearing (Last Year)=Long-Term Debt/Total Assets
=353.5/1742.4
=0.20288108

Acuity Brands Inc's gearing of this year was 0.17928307. Acuity Brands Inc's gearing of last year was 0.20288108. ==> This year is lower. ==> 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
=990.5/366.9
=2.69964568

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=783.7/312.5
=2.50784

Acuity Brands Inc's current ratio of this year was 2.69964568. Acuity Brands Inc's current ratio of last year was 2.50784. ==> This year's current ratio is higher. ==> Score 1.

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.

Acuity Brands Inc's number of shares in issue this year was 43.1. Acuity Brands Inc's number of shares in issue last year was 42.5. ==> There is more 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
=910.7/2242.2
=0.40616359

Gross Margin (Last Year)=Gross Profit/Revenue
=791.6/1969.5
=0.40192942

Acuity Brands Inc's gross margin of this year was 0.40616359. Acuity Brands Inc's gross margin of last year was 0.40192942. ==> 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 (Feb13)
=2242.2/1742.4
=1.28684573

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Feb12)
=1969.5/1597.9
=1.23255523

Acuity Brands Inc's asset turnover of this year was 1.28684573. Acuity Brands Inc's asset turnover of last year was 1.23255523. ==> 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+1+0+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Acuity Brands Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


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.

Acuity Brands Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
Q1 111111111
Q2 111111111
Q3 011001111
Q4 111111111
Q5 111110111
Q6 101001011
Q7 001110110
Q8 011001010
Q9 011001010
F-score 579557696

Acuity Brands Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
Q1 1111111111
Q2 1111111111
Q3 1111010111
Q4 1111111111
Q5 1111111111
Q6 0111111111
Q7 1111000000
Q8 0001000011
Q9 0111111011
F-score 6889676680
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