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Buckle Inc (NYSE:BKE)
Piotroski F-Score
4 (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

Buckle Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

BKE' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 4

4
9

During the past 13 years, the highest Piotroski F-Score of Buckle Inc was 9. The lowest was 4. 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 (Oct15) TTM:Last Year (Oct14) TTM:
Net Income was 60.133 + 33.57 + 23.481 + 35.893 = $153 Mil.
Cash Flow from Operations was 104.12 + 21.755 + 9.008 + 22.828 = $158 Mil.
Revenue was 353.541 + 271.345 + 236.053 + 280.187 = $1,141 Mil.
Gross Profit was 167.415 + 113.597 + 94.595 + 117.264 = $493 Mil.
Average Total Assets from the begining of this year (Oct14)
to the end of this year (Oct15) was
(617.653 + 542.993 + 544.575 + 564.92 + 589.893) / 5 = $572.0068 Mil.
Total Assets at the begining of this year (Oct14) was $618 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $367 Mil.
Total Current Liabilities was $108 Mil.
Net Income was 59.304 + 37.342 + 24.473 + 40.616 = $162 Mil.

Revenue was 338.999 + 271.675 + 235.725 + 292.201 = $1,139 Mil.
Gross Profit was 161.426 + 117.2 + 94.925 + 127.792 = $501 Mil.
Average Total Assets from the begining of last year (Oct13)
to the end of last year (Oct14) was
(545.783 + 546.293 + 553.204 + 569.927 + 617.653) / 5 = $566.572 Mil.
Total Assets at the begining of last year (Oct13) was $546 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $400 Mil.
Total Current Liabilities was $115 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.

Buckle Inc's current net income (TTM) was 153. ==> 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.

Buckle Inc's current cash flow from operations (TTM) was 158. ==> 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 (Oct14)
=153.077/617.653
=0.24783657

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Oct13)
=161.735/545.783
=0.29633572

Buckle Inc's return on assets of this year was 0.24783657. Buckle Inc's return on assets of last year was 0.29633572. ==> 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.

Buckle Inc's current net income (TTM) was 153. Buckle Inc's current cash flow from operations (TTM) was 158. ==> 158 > 153 ==> 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: Oct15)=Long-Term Debt/Average Total Assets from Oct14 to Oct15
=0/572.0068
=0

Gearing (Last Year: Oct14)=Long-Term Debt/Average Total Assets from Oct13 to Oct14
=0/566.572
=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.

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: Oct15)=Total Current Assets/Total Current Liabilities
=367.235/108.487
=3.38505996

Current Ratio (Last Year: Oct14)=Total Current Assets/Total Current Liabilities
=400.018/114.924
=3.48071769

Buckle Inc's current ratio of this year was 3.38505996. Buckle Inc's current ratio of last year was 3.48071769. ==> 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.

Buckle Inc's number of shares in issue this year was 48.2. Buckle Inc's number of shares in issue last year was 48.1. ==> 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
=492.871/1141.126
=0.43191637

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=501.343/1138.6
=0.4403153

Buckle Inc's gross margin of this year was 0.43191637. Buckle Inc's gross margin of last year was 0.4403153. ==> 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 (Oct14)
=1141.126/617.653
=1.84751956

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Oct13)
=1138.6/545.783
=2.08617711

Buckle Inc's asset turnover of this year was 1.84751956. Buckle Inc's asset turnover of last year was 2.08617711. ==> 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+1+1+0+0+0+0
=4

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

Buckle Inc has an F-score of 4 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

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Question 1 1111111111
Question 2 1111111111
Question 3 1111111100
Question 4 1111111111
Question 5 1111111111
Question 6 0000010101
Question 7 1000000000
Question 8 1111001000
Question 9 1111110100
F-score 8777676745

Buckle Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
Question 1 1111111111
Question 2 1111111111
Question 3 0111100000
Question 4 1111111111
Question 5 1111111111
Question 6 0111100001
Question 7 0000000000
Question 8 1000000000
Question 9 0111100000
F-score 5777744445
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