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Bon-Ton Stores Inc (NAS:BONT)
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

Bon-Ton Stores Inc has an F-score of 5 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: 7

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 (Jan14) TTM:Last Year (Jan13) TTM:
Net Income was 61.339 + -0.931 + -37.329 + -26.635 = $-4 Mil.
Cash Flow from Operations was 143.458 + -68.339 + 35.001 + 9.947 = $120 Mil.
Revenue was 934.619 + 666.573 + 570.985 + 661.883 = $2,834 Mil.
Gross Profit was 351.475 + 253.641 + 219.977 + 240.295 = $1,065 Mil.
Total Assets at the begining of this year (Jan13) was $1,634 Mil.
Total Assets was $1,577 Mil.
Long-Term Debt was $853 Mil.
Total Current Assets was $793 Mil.
Total Current Liabilities was $413 Mil.
Net Income was 74.414 + -10.148 + -45.039 + -40.78 = $-22 Mil.

Revenue was 1034.159 + 683.12 + 607.26 + 654.297 = $2,979 Mil.
Gross Profit was 386.42 + 258.901 + 226.544 + 233.081 = $1,105 Mil.
Total Assets at the begining of last year (Jan12) was $1,618 Mil.
Total Assets was $1,634 Mil.
Long-Term Debt was $821 Mil.
Total Current Assets was $837 Mil.
Total Current Liabilities was $493 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 -4. ==> 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 120. ==> 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 (Jan13)
=-3.556/1634.209
=-0.00217598

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jan12)
=-21.553/1618.203
=-0.0133191

Bon-Ton Stores Inc's return on assets of this year was -0.00217598. Bon-Ton Stores Inc's return on assets of last year was -0.0133191. ==> 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.

Bon-Ton Stores Inc's current net income was -4. Bon-Ton Stores Inc's current cash flow from operations was 120. ==> 120 > -4 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=853.349/1577.229
=0.54104318

Gearing (Last Year)=Long-Term Debt/Total Assets
=821.342/1634.209
=0.502593

Bon-Ton Stores Inc's gearing of this year was 0.54104318. Bon-Ton Stores Inc's gearing of last year was 0.502593. ==> Last year is lower ==> 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
=793.076/413.307
=1.91885451

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=836.927/492.65
=1.69882675

Bon-Ton Stores Inc's current ratio of this year was 1.91885451. Bon-Ton Stores Inc's current ratio of last year was 1.69882675. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Bon-Ton Stores Inc's number of shares in issue this year was 19.2. Bon-Ton Stores Inc's number of shares in issue last year was 18.7. ==> There is more 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
=1065.388/2834.06
=0.37592288

Gross Margin (Last Year)=Gross Profit/Revenue
=1104.946/2978.836
=0.37093214

Bon-Ton Stores Inc's gross margin of this year was 0.37592288. Bon-Ton Stores Inc's gross margin of last year was 0.37093214. ==> 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 (Jan13)
=2834.06/1634.209
=1.73420903

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jan12)
=2978.836/1618.203
=1.84082961

Bon-Ton Stores Inc's asset turnover of this year was 1.73420903. Bon-Ton Stores Inc's asset turnover of last year was 1.84082961. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+1+1+0+1+0+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Bon-Ton Stores Inc 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.

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

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
Q1 0000000110
Q2 1111111111
Q3 0000001111
Q4 1111111111
Q5 1111111110
Q6 0001101101
Q7 0100000000
Q8 0000001111
Q9 0111111110
F-score 3545547870
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