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BGC Partners Inc (NAS:BGCP)
Piotroski F-Score
6 (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

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

BGCP' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 6

3
8

During the past 13 years, the highest Piotroski F-Score of BGC Partners Inc was 8. The lowest was 3. 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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was 14.055 + 9.347 + 38.371 + 65.015 = $127 Mil.
Cash Flow from Operations was -63.344 + 56.657 + 133.247 + 86.304 = $213 Mil.
Revenue was 547.567 + 669.131 + 685.295 + 673.444 = $2,575 Mil.
Gross Profit was 547.567 + 669.131 + 685.295 + 673.444 = $2,575 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(2751.127 + 5290.242 + 3971.726 + 4117.846 + 3991.454) / 5 = $4024.479 Mil.
Total Assets at the begining of this year (Dec14) was $2,751 Mil.
Long-Term Debt was $841 Mil.
Total Current Assets was $2,460 Mil.
Total Current Liabilities was $1,851 Mil.
Net Income was 8.008 + 7.601 + 7.211 + -18.685 = $4 Mil.

Revenue was 444.789 + 417.202 + 436.216 + 489.283 = $1,787 Mil.
Gross Profit was 444.789 + 417.202 + 436.216 + 489.283 = $1,787 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(2079.363 + 3072.894 + 2452.413 + 2683.787 + 2751.127) / 5 = $2607.9168 Mil.
Total Assets at the begining of last year (Dec13) was $2,079 Mil.
Long-Term Debt was $707 Mil.
Total Current Assets was $1,964 Mil.
Total Current Liabilities was $1,403 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.

BGC Partners Inc's current net income (TTM) was 127. ==> 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.

BGC Partners Inc's current cash flow from operations (TTM) was 213. ==> 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 (Dec14)
=126.788/2751.127
=0.04608584

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=4.135/2079.363
=0.00198859

BGC Partners Inc's return on assets of this year was 0.04608584. BGC Partners Inc's return on assets of last year was 0.00198859. ==> 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.

BGC Partners Inc's current net income (TTM) was 127. BGC Partners Inc's current cash flow from operations (TTM) was 213. ==> 213 > 127 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=840.877/4024.479
=0.20894059

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=706.7/2607.9168
=0.27098257

BGC Partners Inc's gearing of this year was 0.20894059. BGC Partners Inc's gearing of last year was 0.27098257. ==> This year is lower or equal to last year. ==> Score 1.

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: Dec15)=Total Current Assets/Total Current Liabilities
=2459.882/1850.862
=1.32904668

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=1963.97/1403.004
=1.39983207

BGC Partners Inc's current ratio of this year was 1.32904668. BGC Partners Inc's current ratio of last year was 1.39983207. ==> Last year's current ratio is higher ==> Score 0.

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.

BGC Partners Inc's number of shares in issue this year was 335.4. BGC Partners Inc's number of shares in issue last year was 328.5. ==> 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
=2575.437/2575.437
=1

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1787.49/1787.49
=1

BGC Partners Inc's gross margin of this year was 1. BGC Partners Inc's gross margin of last year was 1. ==> 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 (Dec14)
=2575.437/2751.127
=0.9361389

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=1787.49/2079.363
=0.85963346

BGC Partners Inc's asset turnover of this year was 0.9361389. BGC Partners Inc's asset turnover of last year was 0.85963346. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+0+0+1
=6

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

BGC Partners 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.

BGC Partners Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 0111111111
Question 2 0111111111
Question 3 0101001101
Question 4 1111111111
Question 5 1011101101
Question 6 0010110100
Question 7 1010010100
Question 8 1000000000
Question 9 1101011101
F-score 5566566836

BGC Partners Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1110000011
Question 4 1111111111
Question 5 1110000001
Question 6 1111000000
Question 7 0101100000
Question 8 0000000000
Question 9 1110000111
F-score 7875433456
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