Switch to:
Bon-Ton Stores Inc (NAS:BONT)
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

Bon-Ton Stores Inc has an F-score of 4 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: 4

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 (Apr15) TTM:Last Year (Apr14) TTM:
Net Income was -36.192 + -11.008 + 71.738 + -34.074 = $-10 Mil.
Cash Flow from Operations was 10.148 + -101.541 + 153.825 + -17.83 = $45 Mil.
Revenue was 578.137 + 658.757 + 963.469 + 627.242 = $2,828 Mil.
Gross Profit was 220.885 + 249.273 + 350.362 + 222.777 = $1,043 Mil.
Average Total Assets from the begining of this year (Apr14)
to the end of this year (Apr15) was
(1566.582 + 1572.579 + 1829.98 + 1608.514 + 1595.207) / 5 = $1634.5724 Mil.
Total Assets at the begining of this year (Apr14) was $1,567 Mil.
Long-Term Debt was $742 Mil.
Total Current Assets was $825 Mil.
Total Current Liabilities was $612 Mil.
Net Income was -37.329 + -0.931 + 61.339 + -31.512 = $-8 Mil.

Revenue was 570.985 + 666.573 + 934.619 + 622.533 = $2,795 Mil.
Gross Profit was 219.977 + 253.641 + 351.475 + 229.423 = $1,055 Mil.
Average Total Assets from the begining of last year (Apr13)
to the end of last year (Apr14) was
(1597.193 + 1588.8 + 1808.501 + 1577.229 + 1566.582) / 5 = $1627.661 Mil.
Total Assets at the begining of last year (Apr13) was $1,597 Mil.
Long-Term Debt was $892 Mil.
Total Current Assets was $793 Mil.
Total Current Liabilities was $399 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.

Bon-Ton Stores Inc's current net income (TTM) was -10. ==> Negative ==> Score 0.

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.

Bon-Ton Stores Inc's current cash flow from operations (TTM) was 45. ==> 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 (Apr14)
=-9.536/1566.582
=-0.00608714

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Apr13)
=-8.433/1597.193
=-0.00527989

Bon-Ton Stores Inc's return on assets of this year was -0.00608714. Bon-Ton Stores Inc's return on assets of last year was -0.00527989. ==> 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.

Bon-Ton Stores Inc's current net income (TTM) was -10. Bon-Ton Stores Inc's current cash flow from operations (TTM) was 45. ==> 45 > -10 ==> 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: Apr15)=Long-Term Debt/Average Total Assets from Apr14 to Apr15
=741.626/1634.5724
=0.45371254

Gearing (Last Year: Apr14)=Long-Term Debt/Average Total Assets from Apr13 to Apr14
=891.77/1627.661
=0.54788436

Bon-Ton Stores Inc's gearing of this year was 0.45371254. Bon-Ton Stores Inc's gearing of last year was 0.54788436. ==> 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: Apr15)=Total Current Assets/Total Current Liabilities
=824.776/611.735
=1.34825701

Current Ratio (Last Year: Apr14)=Total Current Assets/Total Current Liabilities
=793.139/398.601
=1.98980685

Bon-Ton Stores Inc's current ratio of this year was 1.34825701. Bon-Ton Stores Inc's current ratio of last year was 1.98980685. ==> 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.

Bon-Ton Stores Inc's number of shares in issue this year was 19.6. Bon-Ton Stores Inc's number of shares in issue last year was 19.3. ==> 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
=1043.297/2827.605
=0.36896844

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1054.516/2794.71
=0.37732573

Bon-Ton Stores Inc's gross margin of this year was 0.36896844. Bon-Ton Stores Inc's gross margin of last year was 0.37732573. ==> 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 (Apr14)
=2827.605/1566.582
=1.8049518

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Apr13)
=2794.71/1597.193
=1.74976349

Bon-Ton Stores Inc's asset turnover of this year was 1.8049518. Bon-Ton Stores Inc's asset turnover of last year was 1.74976349. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+1+0+0+0+1
=4

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

Bon-Ton Stores 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.

Bon-Ton Stores Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Question 1 1110010000
Question 2 1111111111
Question 3 1100110010
Question 4 1111111111
Question 5 1010011100
Question 6 0111000011
Question 7 0001001000
Question 8 0100110010
Question 9 0100111101
F-score 5754575454

Bon-Ton Stores Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
Question 1 0011000000
Question 2 1111111111
Question 3 0111100000
Question 4 1111111111
Question 5 1101010001
Question 6 0110100010
Question 7 0000000000
Question 8 0111111100
Question 9 1111000011
F-score 4777543344
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK