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ConAgra Foods Inc (NYSE:CAG)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

ConAgra Foods Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

CAG' s 10-Year Piotroski F-Score Range
Min: 4   Max: 7
Current: 4

4
7

During the past 13 years, the highest Piotroski F-Score of ConAgra Foods Inc was 7. 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 (May14) TTM:Last Year (May13) TTM:
Net Income was -324.2 + 234.3 + 248.7 + 144.3 = $303 Mil.
Cash Flow from Operations was 608.9 + 386.6 + 389.6 + 166.1 = $1,551 Mil.
Revenue was 4435.5 + 4389.7 + 4713.9 + 4201.8 = $17,741 Mil.
Gross Profit was 905.5 + 975.2 + 1014.7 + 830.9 = $3,726 Mil.
Total Assets at the begining of this year (May13) was $20,405 Mil.
Total Assets was $19,366 Mil.
Long-Term Debt was $8,768 Mil.
Total Current Assets was $4,231 Mil.
Total Current Liabilities was $2,642 Mil.
Net Income was 192.2 + 120 + 211.6 + 250.1 = $774 Mil.

Revenue was 4593.5 + 3850.5 + 3735.5 + 3311.9 = $15,491 Mil.
Gross Profit was 951.8 + 874 + 862.9 + 871.3 = $3,560 Mil.
Total Assets at the begining of last year (May12) was $11,442 Mil.
Total Assets was $20,405 Mil.
Long-Term Debt was $8,887 Mil.
Total Current Assets was $4,380 Mil.
Total Current Liabilities was $3,401 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.

ConAgra Foods Inc's current net income was 303. ==> 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.

ConAgra Foods Inc's current cash flow from operations was 1,551. ==> 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/Total Assets at the beginning of this year (May13)
=303.1/20405.3
=0.01485398

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (May12)
=773.9/11441.9
=0.06763737

ConAgra Foods Inc's return on assets of this year was 0.01485398. ConAgra Foods Inc's return on assets of last year was 0.06763737. ==> 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.

ConAgra Foods Inc's current net income was 303. ConAgra Foods Inc's current cash flow from operations was 1,551. ==> 1,551 > 303 ==> 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)=Long-Term Debt/Total Assets
=8767.6/19366.4
=0.45272224

Gearing (Last Year)=Long-Term Debt/Total Assets
=8886.9/20405.3
=0.4355192

ConAgra Foods Inc's gearing of this year was 0.45272224. ConAgra Foods Inc's gearing of last year was 0.4355192. ==> 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)=Total Current Assets/Total Current Liabilities
=4230.8/2642.4
=1.60112019

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=4379.8/3401.3
=1.28768412

ConAgra Foods Inc's current ratio of this year was 1.60112019. ConAgra Foods Inc's current ratio of last year was 1.28768412. ==> 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.

ConAgra Foods Inc's number of shares in issue this year was 427.8. ConAgra Foods Inc's number of shares in issue last year was 426.9. ==> 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)=Gross Profit/Revenue
=3726.3/17740.9
=0.21004008

Gross Margin (Last Year)=Gross Profit/Revenue
=3560/15491.4
=0.22980492

ConAgra Foods Inc's gross margin of this year was 0.21004008. ConAgra Foods Inc's gross margin of last year was 0.22980492. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (May13)
=17740.9/20405.3
=0.86942608

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (May12)
=15491.4/11441.9
=1.35391849

ConAgra Foods Inc's asset turnover of this year was 0.86942608. ConAgra Foods Inc's asset turnover of last year was 1.35391849. ==> 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+0+1+0+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

ConAgra Foods Inc has an F-score of 4 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

May05May06May07May08May09May10May11May12May13May14
Q1 1111111111
Q2 1111111111
Q3 0011001010
Q4 1110011111
Q5 1101011100
Q6 1010100001
Q7 1111111110
Q8 0110010010
Q9 1010010110
F-score 7685476674

ConAgra Foods Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
Q1 1111111111
Q2 1111111111
Q3 1000011000
Q4 1111111111
Q5 1110000010
Q6 1000000001
Q7 1111100000
Q8 0011110000
Q9 1111111100
F-score 8676665444
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