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

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

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 3. It is a bad or low score, which usually implies poor business operation.

CAG' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 3

3
8

During the past 13 years, the highest Piotroski F-Score of ConAgra Foods Inc was 8. The lowest was 3. 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 (May15) TTM:Last Year (May14) TTM:
Net Income was 482.3 + 10 + -954.1 + 209.2 = $-253 Mil.
Cash Flow from Operations was 233.6 + 184.1 + 322.8 + 740.1 = $1,481 Mil.
Revenue was 3701 + 4150 + 3876.7 + 4104.7 = $15,832 Mil.
Gross Profit was 703.8 + 888.5 + 823.8 + 892.4 = $3,309 Mil.
Average Total Assets from the begining of this year (May14)
to the end of this year (May15) was
(19366.4 + 19373.1 + 19501.7 + 17868.9 + 17542.2) / 5 = $18730.46 Mil.
Total Assets at the begining of this year (May14) was $19,366 Mil.
Long-Term Debt was $6,889 Mil.
Total Current Assets was $3,668 Mil.
Total Current Liabilities was $3,310 Mil.
Net Income was 144.3 + 248.7 + 234.3 + -324.2 = $303 Mil.

Revenue was 4201.8 + 4713.9 + 4389.7 + 4435.5 = $17,741 Mil.
Gross Profit was 830.9 + 1014.7 + 975.2 + 905.5 = $3,726 Mil.
Average Total Assets from the begining of last year (May13)
to the end of last year (May14) was
(20405.3 + 20468.8 + 20786.4 + 20433.3 + 19366.4) / 5 = $20292.04 Mil.
Total Assets at the begining of last year (May13) was $20,405 Mil.
Long-Term Debt was $8,768 Mil.
Total Current Assets was $4,231 Mil.
Total Current Liabilities was $2,642 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 -253. ==> 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 1,481. ==> 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 (May14)
=-252.6/19366.4
=-0.01304321

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (May13)
=303.1/20405.3
=0.01485398

ConAgra Foods Inc's return on assets of this year was -0.01304321. ConAgra Foods Inc's return on assets of last year was 0.01485398. ==> 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 -253. ConAgra Foods Inc's current cash flow from operations (TTM) was 1,481. ==> 1,481 > -253 ==> 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: May15)=Long-Term Debt/Average Total Assets from May14 to May15
=6888.9/18730.46
=0.36779129

Gearing (Last Year: May14)=Long-Term Debt/Average Total Assets from May13 to May14
=8767.6/20292.04
=0.4320709

ConAgra Foods Inc's gearing of this year was 0.36779129. ConAgra Foods Inc's gearing of last year was 0.4320709. ==> 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: May15)=Total Current Assets/Total Current Liabilities
=3667.7/3310.2
=1.10799952

Current Ratio (Last Year: May14)=Total Current Assets/Total Current Liabilities
=4230.8/2642.4
=1.60112019

ConAgra Foods Inc's current ratio of this year was 1.10799952. ConAgra Foods Inc's current ratio of last year was 1.60112019. ==> Last year's current ratio is higher ==> Score 0.

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 427.9. ConAgra Foods Inc's number of shares in issue last year was 427.8. ==> 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
=3308.5/15832.4
=0.20897021

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3726.3/17740.9
=0.21004008

ConAgra Foods Inc's gross margin of this year was 0.20897021. ConAgra Foods Inc's gross margin of last year was 0.21004008. ==> 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 (May14)
=15832.4/19366.4
=0.817519

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (May13)
=17740.9/20405.3
=0.86942608

ConAgra Foods Inc's asset turnover of this year was 0.817519. ConAgra Foods Inc's asset turnover of last year was 0.86942608. ==> Last year's asset turnover is higher ==> Score 0.

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+0+0+0+0
=3

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

ConAgra Foods Inc has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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

May06May07May08May09May10May11May12May13May14May15
Question 1 1111111110
Question 2 1111111111
Question 3 0110010100
Question 4 1100111111
Question 5 1010111011
Question 6 0101000010
Question 7 1111011000
Question 8 1100100100
Question 9 0111101100
F-score 6865666653

ConAgra Foods Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
Question 1 1111111100
Question 2 1111111111
Question 3 0110000000
Question 4 1111111111
Question 5 0000111111
Question 6 0000010000
Question 7 1000000010
Question 8 1100000000
Question 9 1111000000
F-score 6654454443
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