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Bon-Ton Stores Inc (NAS:BONT)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Bon-Ton Stores Inc has an F-score of 3 indicating the company's financial situation is typical for a stable company.

BONT' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 3

2
9

During the past 13 years, the highest Piotroski F-Score of Bon-Ton Stores Inc was 9. The lowest was 2. 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 (Apr14) TTM:Last Year (Apr13) TTM:
Net Income was -31.512 + 61.339 + -0.931 + -37.329 = $-8 Mil.
Cash Flow from Operations was -15.803 + 143.458 + -68.339 + 35.001 = $94 Mil.
Revenue was 622.533 + 934.619 + 666.573 + 570.985 = $2,795 Mil.
Gross Profit was 229.423 + 351.475 + 253.641 + 219.977 = $1,055 Mil.
Total Assets at the begining of this year (Apr13) was $1,597 Mil.
Total Assets was $1,567 Mil.
Long-Term Debt was $892 Mil.
Total Current Assets was $793 Mil.
Total Current Liabilities was $399 Mil.
Net Income was -26.635 + 74.414 + -10.148 + -45.039 = $-7 Mil.

Revenue was 661.883 + 1034.159 + 683.12 + 607.26 = $2,986 Mil.
Gross Profit was 240.295 + 386.42 + 258.901 + 226.544 = $1,112 Mil.
Total Assets at the begining of last year (Apr12) was $1,625 Mil.
Total Assets was $1,597 Mil.
Long-Term Debt was $907 Mil.
Total Current Assets was $812 Mil.
Total Current Liabilities was $396 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.

Bon-Ton Stores Inc's current net income was -8. ==> Negative ==> Score 0.

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.

Bon-Ton Stores Inc's current cash flow from operations was 94. ==> 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)
=-8.433/1597.193
=-0.00527989

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Apr12)
=-7.408/1624.826
=-0.00455926

Bon-Ton Stores Inc's return on assets of this year was -0.00527989. Bon-Ton Stores Inc's return on assets of last year was -0.00455926. ==> Last year is higher ==> Score 0.

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.

Bon-Ton Stores Inc's current net income was -8. Bon-Ton Stores Inc's current cash flow from operations was 94. ==> 94 > -8 ==> 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
=891.77/1566.582
=0.56924566

Gearing (Last Year)=Long-Term Debt/Total Assets
=907.075/1597.193
=0.56791822

Bon-Ton Stores Inc's gearing of this year was 0.56924566. Bon-Ton Stores Inc's gearing of last year was 0.56791822. ==> Last year is lower than this year ==> Score 0.

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
=793.139/398.601
=1.98980685

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=812.091/396.194
=2.04973069

Bon-Ton Stores Inc's current ratio of this year was 1.98980685. Bon-Ton Stores Inc's current ratio of last year was 2.04973069. ==> 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.

Bon-Ton Stores Inc's number of shares in issue this year was 19.3. Bon-Ton Stores Inc's number of shares in issue last year was 18.8. ==> 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
=1054.516/2794.71
=0.37732573

Gross Margin (Last Year)=Gross Profit/Revenue
=1112.16/2986.422
=0.37240551

Bon-Ton Stores Inc's gross margin of this year was 0.37732573. Bon-Ton Stores Inc's gross margin of last year was 0.37240551. ==> This year's gross margin is higher. ==> Score 1.

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)
=2794.71/1597.193
=1.74976349

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Apr12)
=2986.422/1624.826
=1.83799496

Bon-Ton Stores Inc's asset turnover of this year was 1.74976349. Bon-Ton Stores Inc's asset turnover of last year was 1.83799496. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+0+1+0+0+0+1+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Bon-Ton Stores Inc has an F-score of 3 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.

Bon-Ton Stores Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Q1 1111001000
Q2 1111111111
Q3 0110011001
Q4 1111111111
Q5 0101011110
Q6 1011100001
Q7 0000100000
Q8 1110011001
Q9 0010011110
F-score 5675467445

Bon-Ton Stores Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Q1 0000001100
Q2 1111111111
Q3 0000011110
Q4 1111111111
Q5 1111111100
Q6 0011011010
Q7 1000000000
Q8 0000011111
Q9 1111111100
F-score 5455478753
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