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Cal-Maine Foods Inc (NAS:CALM)
Piotroski F-Score
9 (As of Today)

Good Sign:

Piotroski F-Score of 9 is 9, indicating very healthy situation.

The zones of discrimination were as such:

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

Cal-Maine Foods Inc has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

CALM' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 9

2
9

During the past 13 years, the highest Piotroski F-Score of Cal-Maine Foods Inc was 9. The lowest was 2. 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 31.492 + 42.853 + 26.106 + 8.756 = $109 Mil.
Cash Flow from Operations was 53.063 + 61.388 + 17.835 + -8.366 = $124 Mil.
Revenue was 371.582 + 395.522 + 354.275 + 319.528 = $1,441 Mil.
Gross Profit was 91.291 + 91.895 + 74.667 + 44.911 = $303 Mil.
Total Assets at the begining of this year (May13) was $746 Mil.
Total Assets was $812 Mil.
Long-Term Debt was $51 Mil.
Total Current Assets was $445 Mil.
Total Current Liabilities was $121 Mil.
Net Income was -3.833 + 30.551 + 14.29 + 9.415 = $50 Mil.

Revenue was 325.933 + 360.373 + 328.87 + 272.928 = $1,288 Mil.
Gross Profit was 51.489 + 67.047 + 51.298 + 44.715 = $215 Mil.
Total Assets at the begining of last year (May12) was $726 Mil.
Total Assets was $746 Mil.
Long-Term Debt was $55 Mil.
Total Current Assets was $415 Mil.
Total Current Liabilities was $130 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.

Cal-Maine Foods Inc's current net income was 109. ==> 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.

Cal-Maine Foods Inc's current cash flow from operations was 124. ==> 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)
=109.207/745.627
=0.14646331

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (May12)
=50.423/726.316
=0.06942295

Cal-Maine Foods Inc's return on assets of this year was 0.14646331. Cal-Maine Foods Inc's return on assets of last year was 0.06942295. ==> This year is higher. ==> Score 1.

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.

Cal-Maine Foods Inc's current net income was 109. Cal-Maine Foods Inc's current cash flow from operations was 124. ==> 124 > 109 ==> 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
=50.877/811.661
=0.06268257

Gearing (Last Year)=Long-Term Debt/Total Assets
=54.647/745.627
=0.07329

Cal-Maine Foods Inc's gearing of this year was 0.06268257. Cal-Maine Foods Inc's gearing of last year was 0.07329. ==> 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)=Total Current Assets/Total Current Liabilities
=445.393/121.101
=3.67786393

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=414.881/130.195
=3.18661239

Cal-Maine Foods Inc's current ratio of this year was 3.67786393. Cal-Maine Foods Inc's current ratio of last year was 3.18661239. ==> 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.

Cal-Maine Foods Inc's number of shares in issue this year was 24.1. Cal-Maine Foods Inc's number of shares in issue last year was 24.1. ==> 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)=Gross Profit/Revenue
=302.764/1440.907
=0.21012043

Gross Margin (Last Year)=Gross Profit/Revenue
=214.549/1288.104
=0.16656186

Cal-Maine Foods Inc's gross margin of this year was 0.21012043. Cal-Maine Foods Inc's gross margin of last year was 0.16656186. ==> This year's gross margin is higher. ==> Score 1.

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)
=1440.907/745.627
=1.93247696

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (May12)
=1288.104/726.316
=1.77347601

Cal-Maine Foods Inc's asset turnover of this year was 1.93247696. Cal-Maine Foods Inc's asset turnover of last year was 1.77347601. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+1+1+1
=9

Good or high score = 8 or 9

Bad or low score = 0 or 1

Cal-Maine Foods Inc has an F-score of 9. 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.

Cal-Maine Foods Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
Q1 0011111111
Q2 1111111111
Q3 0111000101
Q4 1111111111
Q5 0011011111
Q6 0011111011
Q7 1100000100
Q8 0111000001
Q9 0111000111
F-score 3688455768

Cal-Maine Foods Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
Q1 1111111111
Q2 1111111111
Q3 0111100001
Q4 1100011011
Q5 1111111111
Q6 1010111111
Q7 0100000001
Q8 0000000111
Q9 1111111111
F-score 6765666679
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