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Benchmark Electronics Inc (NYSE:BHE)
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

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

BHE' 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 Benchmark Electronics Inc was 9. The lowest was 3. And the median was 5.


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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 22.15 + 19.125 + 67.489 + 23.726 = $132 Mil.
Cash Flow from Operations was 24.96 + 60.734 + -0.854 + 38.713 = $124 Mil.
Revenue was 716.868 + 639.344 + 756.843 + 599.658 = $2,713 Mil.
Gross Profit was 57.751 + 51.123 + 59.843 + 45.44 = $214 Mil.
Total Assets at the begining of this year (Jun13) was $1,539 Mil.
Total Assets was $1,681 Mil.
Long-Term Debt was $9 Mil.
Total Current Assets was $1,365 Mil.
Total Current Liabilities was $378 Mil.
Net Income was 8.457 + 11.487 + 18.115 + 19.314 = $57 Mil.

Revenue was 607.522 + 542.444 + 633.933 + 610.769 = $2,395 Mil.
Gross Profit was 44.367 + 36.834 + 45.459 + 44.78 = $171 Mil.
Total Assets at the begining of last year (Jun12) was $1,493 Mil.
Total Assets was $1,539 Mil.
Long-Term Debt was $10 Mil.
Total Current Assets was $1,259 Mil.
Total Current Liabilities was $360 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.

Benchmark Electronics Inc's current net income was 132. ==> 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.

Benchmark Electronics Inc's current cash flow from operations was 124. ==> 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 (Jun13)
=132.49/1538.818
=0.08609855

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=57.373/1492.957
=0.0384291

Benchmark Electronics Inc's return on assets of this year was 0.08609855. Benchmark Electronics Inc's return on assets of last year was 0.0384291. ==> 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.

Benchmark Electronics Inc's current net income was 132. Benchmark Electronics Inc's current cash flow from operations was 124. ==> 124 =< 132 ==> CFROA =< ROA ==> Score 0.

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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=9.194/1681.477
=0.00546781

Gearing (Last Year)=Long-Term Debt/Total Assets
=9.822/1538.818
=0.00638282

Benchmark Electronics Inc's gearing of this year was 0.00546781. Benchmark Electronics Inc's gearing of last year was 0.00638282. ==> This year is lower or equal to last year. ==> 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
=1365.231/377.674
=3.61483978

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1258.521/360.237
=3.49359172

Benchmark Electronics Inc's current ratio of this year was 3.61483978. Benchmark Electronics Inc's current ratio of last year was 3.49359172. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Benchmark Electronics Inc's number of shares in issue this year was 54.4. Benchmark Electronics Inc's number of shares in issue last year was 54.5. ==> There is smaller number of shares in issue this year, or the same. ==> 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
=214.157/2712.713
=0.07894569

Gross Margin (Last Year)=Gross Profit/Revenue
=171.44/2394.668
=0.07159239

Benchmark Electronics Inc's gross margin of this year was 0.07894569. Benchmark Electronics Inc's gross margin of last year was 0.07159239. ==> 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 (Jun13)
=2712.713/1538.818
=1.762855

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=2394.668/1492.957
=1.60397654

Benchmark Electronics Inc's asset turnover of this year was 1.762855. Benchmark Electronics Inc's asset turnover of last year was 1.60397654. ==> 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+0+1+1+1+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Benchmark Electronics 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.

Benchmark Electronics Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111011111
Q2 1001111111
Q3 1110011011
Q4 0001110110
Q5 1110011111
Q6 1011111010
Q7 0000111111
Q8 0000011011
Q9 0110001011
F-score 5454488597

Benchmark Electronics Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0001111111
Q4 0111111000
Q5 1111111111
Q6 0001110001
Q7 1111111111
Q8 0001111111
Q9 0011110111
F-score 4569997778
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