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ConAgra Foods Inc (NYSE:CAG)
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

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

CAG' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 8
Current: 6

4
8

During the past 13 years, the highest Piotroski F-Score of ConAgra Foods Inc was 8. The lowest was 4. And the median was 6.


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 (May16) TTM:Last Year (May15) TTM:
Net Income was -1154.1 + 154.9 + 204.6 + 117.6 = $-677 Mil.
Cash Flow from Operations was 66.8 + 251.2 + 377.1 + 512.3 = $1,207 Mil.
Revenue was 2793.8 + 3092.7 + 2924.1 + 2827.5 = $11,638 Mil.
Gross Profit was 700.8 + 828 + 800.4 + 760.9 = $3,090 Mil.
Average Total Assets from the begining of this year (May15)
to the end of this year (May16) was
(17437.8 + 15834.3 + 15994.6 + 13187.2 + 13390.6) / 5 = $15168.9 Mil.
Total Assets at the begining of this year (May15) was $17,438 Mil.
Long-Term Debt was $4,918 Mil.
Total Current Assets was $3,577 Mil.
Total Current Liabilities was $2,532 Mil.
Net Income was 482.3 + 10 + -954.1 + 209.2 = $-253 Mil.

Revenue was 2763 + 3136.4 + 2907.3 + 3125.5 = $11,932 Mil.
Gross Profit was 590.8 + 757.3 + 720 + 806.6 = $2,875 Mil.
Average Total Assets from the begining of last year (May14)
to the end of last year (May15) was
(19319.5 + 19373.1 + 19501.7 + 17868.9 + 17437.8) / 5 = $18700.2 Mil.
Total Assets at the begining of last year (May14) was $19,320 Mil.
Long-Term Debt was $6,889 Mil.
Total Current Assets was $3,563 Mil.
Total Current Liabilities was $3,310 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.

ConAgra Foods Inc's current net income (TTM) was -677. ==> 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.

ConAgra Foods Inc's current cash flow from operations (TTM) was 1,207. ==> 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 (May15)
=-677/17437.8
=-0.0388237

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (May14)
=-252.6/19319.5
=-0.01307487

ConAgra Foods Inc's return on assets of this year was -0.0388237. ConAgra Foods Inc's return on assets of last year was -0.01307487. ==> 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.

ConAgra Foods Inc's current net income (TTM) was -677. ConAgra Foods Inc's current cash flow from operations (TTM) was 1,207. ==> 1,207 > -677 ==> 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: May16)=Long-Term Debt/Average Total Assets from May15 to May16
=4917.8/15168.9
=0.32420281

Gearing (Last Year: May15)=Long-Term Debt/Average Total Assets from May14 to May15
=6888.8/18700.2
=0.36838109

ConAgra Foods Inc's gearing of this year was 0.32420281. ConAgra Foods Inc's gearing of last year was 0.36838109. ==> 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: May16)=Total Current Assets/Total Current Liabilities
=3576.7/2532.4
=1.41237561

Current Ratio (Last Year: May15)=Total Current Assets/Total Current Liabilities
=3563.3/3310.1
=1.07649316

ConAgra Foods Inc's current ratio of this year was 1.41237561. ConAgra Foods Inc's current ratio of last year was 1.07649316. ==> 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.

ConAgra Foods Inc's number of shares in issue this year was 438.5. ConAgra Foods Inc's number of shares in issue last year was 431.3. ==> 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
=3090.1/11638.1
=0.26551585

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2874.7/11932.2
=0.24091953

ConAgra Foods Inc's gross margin of this year was 0.26551585. ConAgra Foods Inc's gross margin of last year was 0.24091953. ==> This year's gross margin is higher. ==> Score 1.

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 (May15)
=11638.1/17437.8
=0.66740644

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (May14)
=11932.2/19319.5
=0.61762468

ConAgra Foods Inc's asset turnover of this year was 0.66740644. ConAgra Foods Inc's asset turnover of last year was 0.61762468. ==> 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+1+0+1+1
=6

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

ConAgra Foods 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.

ConAgra Foods Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
Question 1 1111111100
Question 2 1111111111
Question 3 1100101000
Question 4 1001111111
Question 5 0101110111
Question 6 1010000101
Question 7 1111111000
Question 8 1001001001
Question 9 1111011011
F-score 8657667546

ConAgra Foods Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
Question 1 1111000000
Question 2 1111111111
Question 3 0000000010
Question 4 1111111111
Question 5 1111111111
Question 6 0100000011
Question 7 0000000000
Question 8 1011100001
Question 9 0000011111
F-score 5555444466
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