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Boise Inc (NYSE:BZ)
Piotroski F-Score
0 (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

Boise Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

BZ' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Jun13) TTM:Last Year (Jun12) TTM:
Net Income was 3.603 + 13.547 + -1.225 + -2.208 = $14 Mil.
Cash Flow from Operations was 92.147 + 69.756 + 39.863 + 41.733 = $243 Mil.
Revenue was 645.185 + 627.492 + 607.018 + 621.664 = $2,501 Mil.
Gross Profit was 137.071 + 130.844 + 104.603 + 120.656 = $493 Mil.
Average Total Assets from the begining of this year (Jun12)
to the end of this year (Jun13) was
(2252.472 + 2287.784 + 2208.412 + 2216.573 + 2209.144) / 5 = $2234.877 Mil.
Total Assets at the begining of this year (Jun12) was $2,252 Mil.
Long-Term Debt was $760 Mil.
Total Current Assets was $638 Mil.
Total Current Liabilities was $319 Mil.
Net Income was 28.364 + 16.255 + 21.338 + 13.662 = $80 Mil.

Revenue was 631.742 + 600.441 + 644.846 + 637.84 = $2,515 Mil.
Gross Profit was 143.071 + 132.972 + 137.601 + 126.031 = $540 Mil.
Average Total Assets from the begining of last year (Jun11)
to the end of last year (Jun12) was
(2247.41 + 2197.836 + 2286.07 + 2247.575 + 2252.472) / 5 = $2246.2726 Mil.
Total Assets at the begining of last year (Jun11) was $2,247 Mil.
Long-Term Debt was $780 Mil.
Total Current Assets was $656 Mil.
Total Current Liabilities was $307 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.

Boise Inc's current net income (TTM) was 14. ==> 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.

Boise Inc's current cash flow from operations (TTM) was 243. ==> 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 (Jun12)
=13.717/2252.472
=0.00608975

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun11)
=79.619/2247.41
=0.035427

Boise Inc's return on assets of this year was 0.00608975. Boise Inc's return on assets of last year was 0.035427. ==> 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.

Boise Inc's current net income (TTM) was 14. Boise Inc's current cash flow from operations (TTM) was 243. ==> 243 > 14 ==> 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: Jun13)=Long-Term Debt/Average Total Assets from Jun12 to Jun13
=760/2234.877
=0.34006346

Gearing (Last Year: Jun12)=Long-Term Debt/Average Total Assets from Jun11 to Jun12
=780/2246.2726
=0.34724192

Boise Inc's gearing of this year was 0.34006346. Boise Inc's gearing of last year was 0.34724192. ==> 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: Jun13)=Total Current Assets/Total Current Liabilities
=638.209/319.275
=1.99893196

Current Ratio (Last Year: Jun12)=Total Current Assets/Total Current Liabilities
=656.193/306.953
=2.13776376

Boise Inc's current ratio of this year was 1.99893196. Boise Inc's current ratio of last year was 2.13776376. ==> 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.

Boise Inc's number of shares in issue this year was 100.5. Boise Inc's number of shares in issue last year was 101. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=493.174/2501.359
=0.19716242

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=539.675/2514.869
=0.21459368

Boise Inc's gross margin of this year was 0.19716242. Boise Inc's gross margin of last year was 0.21459368. ==> Last year's gross margin is higher ==> Score 0.

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 (Jun12)
=2501.359/2252.472
=1.11049505

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun11)
=2514.869/2247.41
=1.11900766

Boise Inc's asset turnover of this year was 1.11049505. Boise Inc's asset turnover of last year was 1.11900766. ==> 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+0+1+0+0
=5

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

Boise 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.

Boise Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12
Q1 11
Q2 11
Q3 10
Q4 11
Q5 11
Q6 10
Q7 01
Q8 10
Q9 10
F-score 85

Boise Inc Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13
Q1 1111111111
Q2 1111111111
Q3 0001000000
Q4 1111111111
Q5 0111100111
Q6 0101101000
Q7 0000011111
Q8 1111000000
Q9 1111100000
F-score 6768645455
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