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Ball Corp (NYSE:BLL)
Piotroski F-Score
5 (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

Ball Corp has an F-score of 5 indicating the company's financial situation is typical for a stable company.

BLL' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 5

4
9

During the past 13 years, the highest Piotroski F-Score of Ball Corp 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 (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was 147.4 + 76 + 20.7 + 160.4 = $405 Mil.
Cash Flow from Operations was 440 + 362.5 + -180.5 + 392.2 = $1,014 Mil.
Revenue was 2238.9 + 2032.4 + 1923.1 + 2172.3 = $8,367 Mil.
Gross Profit was 431.6 + 395.5 + 362.2 + 397.2 = $1,587 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(7771.4 + 7614.9 + 7571 + 7660.5 + 7852.9) / 5 = $7694.14 Mil.
Total Assets at the begining of this year (Jun14) was $7,771 Mil.
Long-Term Debt was $2,982 Mil.
Total Current Assets was $2,505 Mil.
Total Current Liabilities was $2,192 Mil.
Net Income was 115.2 + 124.5 + 93.5 + 153.1 = $486 Mil.

Revenue was 2277.9 + 1996.8 + 2006.8 + 2291.9 = $8,573 Mil.
Gross Profit was 431 + 410.7 + 393.9 + 445.5 = $1,681 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(7815.6 + 7709.2 + 7820.4 + 7744.5 + 7771.4) / 5 = $7772.22 Mil.
Total Assets at the begining of last year (Jun13) was $7,816 Mil.
Long-Term Debt was $3,129 Mil.
Total Current Assets was $2,420 Mil.
Total Current Liabilities was $1,974 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.

Ball Corp's current net income (TTM) was 405. ==> 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.

Ball Corp's current cash flow from operations (TTM) was 1,014. ==> 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 (Jun14)
=404.5/7771.4
=0.05204982

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=486.3/7815.6
=0.06222171

Ball Corp's return on assets of this year was 0.05204982. Ball Corp's return on assets of last year was 0.06222171. ==> 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.

Ball Corp's current net income (TTM) was 405. Ball Corp's current cash flow from operations (TTM) was 1,014. ==> 1,014 > 405 ==> 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: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=2982.1/7694.14
=0.38758068

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=3129.2/7772.22
=0.40261341

Ball Corp's gearing of this year was 0.38758068. Ball Corp's gearing of last year was 0.40261341. ==> 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: Jun15)=Total Current Assets/Total Current Liabilities
=2505.1/2192.3
=1.1426812

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=2419.8/1973.6
=1.22608431

Ball Corp's current ratio of this year was 1.1426812. Ball Corp's current ratio of last year was 1.22608431. ==> 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.

Ball Corp's number of shares in issue this year was 141.5. Ball Corp's number of shares in issue last year was 142.9. ==> 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
=1586.5/8366.7
=0.18962076

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1681.1/8573.4
=0.19608323

Ball Corp's gross margin of this year was 0.18962076. Ball Corp's gross margin of last year was 0.19608323. ==> 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 (Jun14)
=8366.7/7771.4
=1.07660138

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=8573.4/7815.6
=1.09695993

Ball Corp's asset turnover of this year was 1.07660138. Ball Corp's asset turnover of last year was 1.09695993. ==> 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+1+0+0
=5

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

Ball Corp has an F-score of 5 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.

Ball Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1111111111
Question 2 1111111111
Question 3 0101110001
Question 4 1111111111
Question 5 1011001011
Question 6 0110110100
Question 7 1111011111
Question 8 0001110011
Question 9 0100011000
F-score 5767686567

Ball Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 1111111111
Question 2 1111111111
Question 3 0000111100
Question 4 1111111111
Question 5 0001111111
Question 6 1110000000
Question 7 1111111111
Question 8 1111111100
Question 9 1100000010
F-score 7766777765
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