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Boston Properties Inc (NYSE:BXP)
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Boston Properties Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

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

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 (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was 130.371 + 177.285 + 173.771 + 82.078 = $564 Mil.
Cash Flow from Operations was 160.684 + 225.876 + 201.446 + 241.63 = $830 Mil.
Revenue was 618.803 + 613.707 + 618.476 + 618.221 = $2,469 Mil.
Gross Profit was 396.039 + 395.091 + 389.55 + 395.262 = $1,576 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(18898.533 + 18875.16 + 19886.767 + 19179.071 + 19113.959) / 5 = $19190.698 Mil.
Total Assets at the begining of this year (Jun14) was $18,899 Mil.
Long-Term Debt was $9,867 Mil.
Total Current Assets was $2,402 Mil.
Total Current Liabilities was $523 Mil.
Net Income was 155.324 + 91.539 + 56.623 + 79.145 = $383 Mil.

Revenue was 574.082 + 568.705 + 574.694 + 589.794 = $2,307 Mil.
Gross Profit was 367.152 + 365.473 + 361.509 + 379.833 = $1,474 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(19462.784 + 19519.708 + 20162.251 + 18979.568 + 18898.533) / 5 = $19404.5688 Mil.
Total Assets at the begining of last year (Jun13) was $19,463 Mil.
Long-Term Debt was $10,739 Mil.
Total Current Assets was $1,840 Mil.
Total Current Liabilities was $485 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.

Boston Properties Inc's current net income (TTM) was 564. ==> Positive ==> Score 1.

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.

Boston Properties Inc's current cash flow from operations (TTM) was 830. ==> 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 (Jun14)
=563.505/18898.533
=0.02981739

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=382.631/19462.784
=0.01965962

Boston Properties Inc's return on assets of this year was 0.02981739. Boston Properties Inc's return on assets of last year was 0.01965962. ==> This year is higher. ==> Score 1.

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.

Boston Properties Inc's current net income (TTM) was 564. Boston Properties Inc's current cash flow from operations (TTM) was 830. ==> 830 > 564 ==> 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: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=9867.459/19190.698
=0.51417927

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=10738.609/19404.5688
=0.55340622

Boston Properties Inc's gearing of this year was 0.51417927. Boston Properties Inc's gearing of last year was 0.55340622. ==> 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: Jun15)=Total Current Assets/Total Current Liabilities
=2402.242/523.34
=4.59021286

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=1839.686/484.524
=3.79689345

Boston Properties Inc's current ratio of this year was 4.59021286. Boston Properties Inc's current ratio of last year was 3.79689345. ==> This year's current ratio is higher. ==> Score 1.

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.

Boston Properties Inc's number of shares in issue this year was 153.8. Boston Properties Inc's number of shares in issue last year was 153.2. ==> 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
=1575.942/2469.207
=0.63823811

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1473.967/2307.275
=0.63883456

Boston Properties Inc's gross margin of this year was 0.63823811. Boston Properties Inc's gross margin of last year was 0.63883456. ==> 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 (Jun14)
=2469.207/18898.533
=0.13065601

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=2307.275/19462.784
=0.11854805

Boston Properties Inc's asset turnover of this year was 0.13065601. Boston Properties Inc's asset turnover of last year was 0.11854805. ==> 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
=1+1+1+1+1+1+0+0+1
=7

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

Boston Properties Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1111111111
Question 2 1111111111
Question 3 1110101010
Question 4 1001111111
Question 5 1100000101
Question 6 0010111000
Question 7 0000000000
Question 8 1110110011
Question 9 0100101010
F-score 6653756465

Boston Properties Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 1111111111
Question 2 1111111111
Question 3 0111100001
Question 4 1111011111
Question 5 0000111111
Question 6 1000001011
Question 7 0000000000
Question 8 0001111110
Question 9 1011100001
F-score 5456656567
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