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Ball Corp (NYSE:BLL)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, 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

Ball Corp has an F-score of 7 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: 7

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 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 115.2 + 124.5 + 93.5 + 153.1 = $486 Mil.
Cash Flow from Operations was 538.5 + 387.1 + -136.2 + 346.2 = $1,136 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 this year (Jun13)
to the end of this year (Jun14) was
(7815.6 + 7709.2 + 7819.8 + 7744.5 + 7771.4) / 5 = $7,772 Mil.
Total Assets was $7,771 Mil.
Long-Term Debt was $3,129 Mil.
Total Current Assets was $2,420 Mil.
Total Current Liabilities was $1,974 Mil.
Net Income was 115.1 + 60.6 + 72 + 95.1 = $343 Mil.

Revenue was 2282.5 + 2114.2 + 1991 + 2202.4 = $8,590 Mil.
Gross Profit was 416.4 + 384.8 + 347.5 + 403.5 = $1,552 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(7439.5 + 7524 + 7507.1 + 7776 + 7815.6) / 5 = $7,612 Mil.
Total Assets was $7,816 Mil.
Long-Term Debt was $3,473 Mil.
Total Current Assets was $2,620 Mil.
Total Current Liabilities was $1,767 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Ball Corp's current net income (ttm) was 486. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Ball Corp's current cash flow from operations (ttm) was 1,136. ==> 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 (TTM)/Average Total Assets from Jun13 to Jun14
=486.3/7772.1
=0.06256996

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=342.8/7612.44
=0.04503155

Ball Corp's return on assets of this year was 0.06256996. Ball Corp's return on assets of last year was 0.04503155. ==> 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.

Ball Corp's current net income (ttm) was 486. Ball Corp's current cash flow from operations (ttm) was 1,136. ==> 1,136 > 486 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

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

Gearing (This Year: Jun14)=Long-Term Debt/Total Assets
=3129.2/7771.4
=0.40265589

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=3472.6/7815.6
=0.4443165

Ball Corp's gearing of this year was 0.40265589. Ball Corp's gearing of last year was 0.4443165. ==> 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: Jun14)=Total Current Assets/Total Current Liabilities
=2419.8/1973.6
=1.22608431

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=2619.5/1767.4
=1.48212063

Ball Corp's current ratio of this year was 1.22608431. Ball Corp's current ratio of last year was 1.48212063. ==> Last year's current ratio is higher ==> Score 0.

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.

Ball Corp's number of shares in issue this year was 142.9. Ball Corp's number of shares in issue last year was 150.3. ==> 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: TTM)=Gross Profit/Revenue
=1681.1/8573.4
=0.19608323

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1552.2/8590.1
=0.18069638

Ball Corp's gross margin of this year was 0.19608323. Ball Corp's gross margin of last year was 0.18069638. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout 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)/Average Total Assets from Jun13 to Jun14
=8573.4/7772.1
=1.10309955

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=8590.1/7612.44
=1.12842926

Ball Corp's asset turnover of this year was 1.10309955. Ball Corp's asset turnover of last year was 1.12842926. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+1+1+0
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Ball Corp 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, Altman Z-Score, Beneish M-Score


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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1010101001
Q4 1111111111
Q5 1101100101
Q6 1011011010
Q7 1111111111
Q8 1000111001
Q9 0111100100
F-score 8677867657

Ball Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0000000011
Q4 1111111111
Q5 0010000111
Q6 0001111000
Q7 1111111111
Q8 0000111111
Q9 1011100000
F-score 5466766677
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