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Boston Properties Inc (NYSE:BXP)
Piotroski F-Score
6 (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

Boston Properties Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

BXP' s 10-Year Piotroski F-Score Range
Min: 3   Max: 7
Current: 6

3
7

During the past 13 years, the highest Piotroski F-Score of Boston Properties Inc was 7. The lowest was 3. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 91.539 + 56.623 + 79.145 + 130.371 = $358 Mil.
Cash Flow from Operations was 227.505 + 124.209 + 184.784 + 160.684 = $697 Mil.
Revenue was 568.705 + 574.694 + 589.794 + 618.803 = $2,352 Mil.
Gross Profit was 365.473 + 361.509 + 379.833 + 396.039 = $1,503 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(19519.708 + 20162.251 + 18979.568 + 18898.533 + 18875.16) / 5 = $19287.044 Mil.
Total Assets at the begining of this year (Sep13) was $19,520 Mil.
Long-Term Debt was $10,656 Mil.
Total Current Assets was $1,752 Mil.
Total Current Liabilities was $548 Mil.
Net Income was 48.177 + 48 + 455.035 + 155.324 = $707 Mil.

Revenue was 487.239 + 483.014 + 515.32 + 574.082 = $2,060 Mil.
Gross Profit was 308.595 + 303.35 + 328.148 + 367.152 = $1,307 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(15141.943 + 15462.321 + 15623.279 + 19462.784 + 19519.708) / 5 = $17042.007 Mil.
Total Assets at the begining of last year (Sep12) was $15,142 Mil.
Long-Term Debt was $11,043 Mil.
Total Current Assets was $2,407 Mil.
Total Current Liabilities was $1,001 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.

Boston Properties Inc's current net income (TTM) was 358. ==> Positive ==> Score 1.

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.

Boston Properties Inc's current cash flow from operations (TTM) was 697. ==> 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)/Total Assets at the Beginning of This Year (Sep13)
=357.678/19519.708
=0.01832394

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=706.536/15141.943
=0.04666085

Boston Properties Inc's return on assets of this year was 0.01832394. Boston Properties Inc's return on assets of last year was 0.04666085. ==> 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.

Boston Properties Inc's current net income (TTM) was 358. Boston Properties Inc's current cash flow from operations (TTM) was 697. ==> 697 > 358 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=10655.75/19287.044
=0.55248228

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=11043.029/17042.007
=0.64798876

Boston Properties Inc's gearing of this year was 0.55248228. Boston Properties Inc's gearing of last year was 0.64798876. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=1751.754/548.262
=3.1951038

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=2406.585/1000.898
=2.40442583

Boston Properties Inc's current ratio of this year was 3.1951038. Boston Properties Inc's current ratio of last year was 2.40442583. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Boston Properties Inc's number of shares in issue this year was 153.3. Boston Properties Inc's number of shares in issue last year was 152.7. ==> 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
=1502.854/2351.996
=0.63896962

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1307.245/2059.655
=0.63469125

Boston Properties Inc's gross margin of this year was 0.63896962. Boston Properties Inc's gross margin of last year was 0.63469125. ==> 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)
=2351.996/19519.708
=0.1204934

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=2059.655/15141.943
=0.13602316

Boston Properties Inc's asset turnover of this year was 0.1204934. Boston Properties Inc's asset turnover of last year was 0.13602316. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+1+0+1+0
=6

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

Boston Properties Inc has an F-score of 6 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.

Boston Properties Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0111010101
Q4 1100111111
Q5 0110000010
Q6 0001011100
Q7 0000000000
Q8 0111011001
Q9 1010010101
F-score 4665375646

Boston Properties Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 1100111100
Q4 1111111011
Q5 0010000111
Q6 1101000001
Q7 0000000000
Q8 0000001111
Q9 1101011100
F-score 6645456656
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