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Buckle, Inc. (NYSE:BKE)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

Buckle, Inc. has an F-score of 7 indicating the company's financial situation is typical for a stable company.

BKE' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 6

4
8

During the past 13 years, the highest Piotroski F-Score of Buckle, Inc. was 8. The lowest was 4. 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 (Apr14) TTM:Last Year (Apr13) TTM:
Net Income was 37.342 + 59.304 + 40.584 + 25.144 = $162 Mil.
Cash Flow from Operations was 29.912 + 104.706 + 43.143 + 5.036 = $183 Mil.
Revenue was 271.675 + 338.999 + 286.761 + 232.529 = $1,130 Mil.
Gross Profit was 117.2 + 161.426 + 126.225 + 94.487 = $499 Mil.
Total Assets at the begining of this year (Apr13) was $486 Mil.
Total Assets was $553 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $344 Mil.
Total Current Liabilities was $100 Mil.
Net Income was 37.552 + 61.356 + 41.917 + 23.223 = $164 Mil.

Revenue was 269.712 + 360.615 + 284.147 + 215.483 = $1,130 Mil.
Gross Profit was 117.007 + 173.202 + 125.415 + 86.503 = $502 Mil.
Total Assets at the begining of last year (Apr12) was $550 Mil.
Total Assets was $486 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $281 Mil.
Total Current Liabilities was $104 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.

Buckle, Inc.'s current net income was 162. ==> 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.

Buckle, Inc.'s current cash flow from operations was 183. ==> 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 (Apr13)
=162.374/485.607
=0.33437327

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Apr12)
=164.048/549.941
=0.29830109

Buckle, Inc.'s return on assets of this year was 0.33437327. Buckle, Inc.'s return on assets of last year was 0.29830109. ==> 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.

Buckle, Inc.'s current net income was 162. Buckle, Inc.'s current cash flow from operations was 183. ==> 183 > 162 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=0/553.204
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/485.607
=0

Buckle, Inc.'s gearing of this year was 0. Buckle, Inc.'s gearing of last year was 0. ==> 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
=344.406/100.081
=3.44127257

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=280.743/103.62
=2.70935148

Buckle, Inc.'s current ratio of this year was 3.44127257. Buckle, Inc.'s current ratio of last year was 2.70935148. ==> 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.

Buckle, Inc.'s number of shares in issue this year was 48. Buckle, Inc.'s number of shares in issue last year was 47.9. ==> There is larger 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
=499.338/1129.964
=0.44190611

Gross Margin (Last Year)=Gross Profit/Revenue
=502.127/1129.957
=0.44437709

Buckle, Inc.'s gross margin of this year was 0.44190611. Buckle, Inc.'s gross margin of last year was 0.44437709. ==> 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 (Apr13)
=1129.964/485.607
=2.32691044

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Apr12)
=1129.957/549.941
=2.05468768

Buckle, Inc.'s asset turnover of this year was 2.32691044. Buckle, Inc.'s asset turnover of last year was 2.05468768. ==> 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+0+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Buckle, Inc. has an F-score of 7 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.

Buckle, Inc. Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Q1 1111111111
Q2 1111111111
Q3 1111111111
Q4 1111111111
Q5 1111111111
Q6 1000000101
Q7 0110000000
Q8 1111110010
Q9 0011111101
F-score 7787776767

Buckle, Inc. Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Q1 1111111111
Q2 1111111111
Q3 1111101011
Q4 1111111111
Q5 1111111111
Q6 1111000011
Q7 0000000000
Q8 0101111100
Q9 1111000011
F-score 6767545466
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