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Bluelinx Holdings Inc (NYSE:BXC)
Piotroski F-Score
2 (As of Today)

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Bluelinx Holdings Inc has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

BXC' s 10-Year Piotroski F-Score Range
Min: 2   Max: 7
Current: 2

2
7

During the past 13 years, the highest Piotroski F-Score of Bluelinx Holdings Inc was 7. The lowest was 2. And the median was 4.


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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was -2.457 + -8.608 + 3.236 + -0.859 = $-9 Mil.
Cash Flow from Operations was 30.913 + -46.115 + -22.214 + 14.901 = $-23 Mil.
Revenue was 486.275 + 443.944 + 531.494 + 549.845 = $2,012 Mil.
Gross Profit was 54.349 + 52.676 + 62.033 + 64.58 = $234 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(629.26 + 530.246 + 611.816 + 633.72 + 627.425) / 5 = $606.4934 Mil.
Total Assets at the begining of this year (Sep13) was $629 Mil.
Long-Term Debt was $383 Mil.
Total Current Assets was $504 Mil.
Total Current Liabilities was $218 Mil.
Net Income was -11.37 + -12.649 + -22.306 + -3.206 = $-50 Mil.

Revenue was 440.298 + 503.153 + 604.592 + 557.952 = $2,106 Mil.
Gross Profit was 52.119 + 56.458 + 55.185 + 62.492 = $226 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(595.421 + 544.736 + 699.584 + 714.3 + 629.26) / 5 = $636.6602 Mil.
Total Assets at the begining of last year (Sep12) was $595 Mil.
Long-Term Debt was $377 Mil.
Total Current Assets was $504 Mil.
Total Current Liabilities was $211 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.

Bluelinx Holdings Inc's current net income (TTM) was -9. ==> 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.

Bluelinx Holdings Inc's current cash flow from operations (TTM) was -23. ==> Negative ==> Score 0.

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)/Total Assets at the Beginning of This Year (Sep13)
=-8.688/629.26
=-0.01380669

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=-49.531/595.421
=-0.08318652

Bluelinx Holdings Inc's return on assets of this year was -0.01380669. Bluelinx Holdings Inc's return on assets of last year was -0.08318652. ==> 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.

Bluelinx Holdings Inc's current net income (TTM) was -9. Bluelinx Holdings Inc's current cash flow from operations (TTM) was -23. ==> -23 <= -9 ==> CFROA <= ROA ==> Score 0.

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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=382.514/606.4934
=0.63069771

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=377.014/636.6602
=0.5921746

Bluelinx Holdings Inc's gearing of this year was 0.63069771. Bluelinx Holdings Inc's gearing of last year was 0.5921746. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=503.691/217.977
=2.31075297

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=504.214/211.379
=2.38535522

Bluelinx Holdings Inc's current ratio of this year was 2.31075297. Bluelinx Holdings Inc's current ratio of last year was 2.38535522. ==> 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.

Bluelinx Holdings Inc's number of shares in issue this year was 86.4. Bluelinx Holdings Inc's number of shares in issue last year was 84.6. ==> 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: TTM)=Gross Profit/Revenue
=233.638/2011.558
=0.11614778

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=226.254/2105.995
=0.1074333

Bluelinx Holdings Inc's gross margin of this year was 0.11614778. Bluelinx Holdings Inc's gross margin of last year was 0.1074333. ==> 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 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 (Sep13)
=2011.558/629.26
=3.19670407

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=2105.995/595.421
=3.53698476

Bluelinx Holdings Inc's asset turnover of this year was 3.19670407. Bluelinx Holdings Inc's asset turnover of last year was 3.53698476. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+0+1+0+0+0+0+1+0
=2

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

Bluelinx Holdings Inc has an F-score of 2. It is a bad or low score, which usually implies poor business operation.


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.

Bluelinx Holdings Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1110000000
Q2 1111100000
Q3 0100000110
Q4 1111111001
Q5 0100100100
Q6 1111011011
Q7 0000011000
Q8 0111110110
Q9 0100001111
F-score 4854444443

Bluelinx Holdings Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 0000000000
Q2 0000000110
Q3 1111000011
Q4 0000001110
Q5 0001111000
Q6 1110011110
Q7 0000000000
Q8 1110000011
Q9 1111111000
F-score 4443234352
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