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Benchmark Electronics Inc (NYSE:BHE)
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

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

BHE' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 6

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 (Mar15) TTM:Last Year (Mar14) TTM:
Net Income was 22.15 + 17.156 + 24.011 + 14.205 = $78 Mil.
Cash Flow from Operations was 24.96 + 28.211 + 22.756 + -10.905 = $65 Mil.
Revenue was 716.868 + 731.302 + 709.547 + 620.925 = $2,779 Mil.
Gross Profit was 57.751 + 55.294 + 55.689 + 51.779 = $221 Mil.
Average Total Assets from the begining of this year (Mar14)
to the end of this year (Mar15) was
(1657.891 + 1681.477 + 1727.991 + 1678.889 + 1629.407) / 5 = $1675.131 Mil.
Total Assets at the begining of this year (Mar14) was $1,658 Mil.
Long-Term Debt was $9 Mil.
Total Current Assets was $1,342 Mil.
Total Current Liabilities was $313 Mil.
Net Income was 8.457 + 23.726 + 67.489 + 19.125 = $119 Mil.

Revenue was 607.522 + 599.658 + 756.843 + 639.344 = $2,603 Mil.
Gross Profit was 44.367 + 45.44 + 59.843 + 51.123 = $201 Mil.
Average Total Assets from the begining of last year (Mar13)
to the end of last year (Mar14) was
(1482.777 + 1538.818 + 1563.568 + 1657.371 + 1657.891) / 5 = $1580.085 Mil.
Total Assets at the begining of last year (Mar13) was $1,483 Mil.
Long-Term Debt was $9 Mil.
Total Current Assets was $1,343 Mil.
Total Current Liabilities was $376 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.

Benchmark Electronics Inc's current net income (TTM) was 78. ==> 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.

Benchmark Electronics Inc's current cash flow from operations (TTM) was 65. ==> 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 (Mar14)
=77.522/1657.891
=0.04675941

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=118.797/1482.777
=0.08011791

Benchmark Electronics Inc's return on assets of this year was 0.04675941. Benchmark Electronics Inc's return on assets of last year was 0.08011791. ==> 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.

Benchmark Electronics Inc's current net income (TTM) was 78. Benchmark Electronics Inc's current cash flow from operations (TTM) was 65. ==> 65 <= 78 ==> CFROA <= ROA ==> Score 0.

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: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=8.665/1675.131
=0.00517273

Gearing (Last Year: Mar14)=Long-Term Debt/Average Total Assets from Mar13 to Mar14
=9.366/1580.085
=0.00592753

Benchmark Electronics Inc's gearing of this year was 0.00517273. Benchmark Electronics Inc's gearing of last year was 0.00592753. ==> 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: Mar15)=Total Current Assets/Total Current Liabilities
=1342.488/312.628
=4.29420269

Current Ratio (Last Year: Mar14)=Total Current Assets/Total Current Liabilities
=1342.618/376.181
=3.56907446

Benchmark Electronics Inc's current ratio of this year was 4.29420269. Benchmark Electronics Inc's current ratio of last year was 3.56907446. ==> 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.

Benchmark Electronics Inc's number of shares in issue this year was 53. Benchmark Electronics Inc's number of shares in issue last year was 54.3. ==> 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
=220.513/2778.642
=0.07935999

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=200.773/2603.367
=0.07712051

Benchmark Electronics Inc's gross margin of this year was 0.07935999. Benchmark Electronics Inc's gross margin of last year was 0.07712051. ==> 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 (Mar14)
=2778.642/1657.891
=1.67601006

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=2603.367/1482.777
=1.75573738

Benchmark Electronics Inc's asset turnover of this year was 1.67601006. Benchmark Electronics Inc's asset turnover of last year was 1.75573738. ==> 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+0+1+1+1+1+0
=6

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

Benchmark Electronics 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.

Benchmark Electronics Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1110111111
Question 2 0011111111
Question 3 1100110110
Question 4 0011101101
Question 5 1101011111
Question 6 0111110101
Question 7 0001111111
Question 8 0000110111
Question 9 1100010111
F-score 4545785978

Benchmark Electronics Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Question 1 1111111111
Question 2 1111111111
Question 3 1111111100
Question 4 1111000010
Question 5 1111111111
Question 6 1110001011
Question 7 1111111111
Question 8 1111111111
Question 9 1110111110
F-score 9997778786
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