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

Good Sign:

Piotroski F-Score of 7 is 7, 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 7 indicating the company's financial situation is typical for a stable company.

CALM' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 6

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 (Feb14) TTM:Last Year (Feb13) TTM:
Net Income was 42.853 + 26.106 + 8.756 + -3.833 = $74 Mil.
Cash Flow from Operations was 61.388 + 17.835 + -8.366 + 14.938 = $86 Mil.
Revenue was 395.522 + 354.275 + 319.528 + 325.933 = $1,395 Mil.
Gross Profit was 91.895 + 74.667 + 44.911 + 51.489 = $263 Mil.
Total Assets at the begining of this year (Feb13) was $755 Mil.
Total Assets was $797 Mil.
Long-Term Debt was $53 Mil.
Total Current Assets was $440 Mil.
Total Current Liabilities was $129 Mil.
Net Income was 30.551 + 14.29 + 9.415 + 37.256 = $92 Mil.

Revenue was 360.373 + 328.87 + 272.928 + 275.245 = $1,237 Mil.
Gross Profit was 67.047 + 51.298 + 44.715 + 41.355 = $204 Mil.
Total Assets at the begining of last year (Feb12) was $695 Mil.
Total Assets was $755 Mil.
Long-Term Debt was $57 Mil.
Total Current Assets was $421 Mil.
Total Current Liabilities was $132 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 74. ==> 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 86. ==> 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 (Feb13)
=73.882/754.69
=0.09789715

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Feb12)
=91.512/695.397
=0.13159677

Cal-Maine Foods, Inc.'s return on assets of this year was 0.09789715. Cal-Maine Foods, Inc.'s return on assets of last year was 0.13159677. ==> 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.

Cal-Maine Foods, Inc.'s current net income was 74. Cal-Maine Foods, Inc.'s current cash flow from operations was 86. ==> 86 > 74 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=53.384/797.077
=0.06697471

Gearing (Last Year)=Long-Term Debt/Total Assets
=56.878/754.69
=0.07536604

Cal-Maine Foods, Inc.'s gearing of this year was 0.06697471. Cal-Maine Foods, Inc.'s gearing of last year was 0.07536604. ==> This year is lower. ==> 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
=439.909/128.698
=3.41814947

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=420.523/131.521
=3.19738293

Cal-Maine Foods, Inc.'s current ratio of this year was 3.41814947. Cal-Maine Foods, Inc.'s current ratio of last year was 3.19738293. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Cal-Maine Foods, Inc.'s number of shares in issue this year was 24.2. Cal-Maine Foods, Inc.'s number of shares in issue last year was 24.1. ==> There is more 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
=262.962/1395.258
=0.18846837

Gross Margin (Last Year)=Gross Profit/Revenue
=204.415/1237.416
=0.16519505

Cal-Maine Foods, Inc.'s gross margin of this year was 0.18846837. Cal-Maine Foods, Inc.'s gross margin of last year was 0.16519505. ==> 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 (Feb13)
=1395.258/754.69
=1.84878294

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Feb12)
=1237.416/695.397
=1.77943822

Cal-Maine Foods, Inc.'s asset turnover of this year was 1.84878294. Cal-Maine Foods, Inc.'s asset turnover of last year was 1.77943822. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+1+0+1+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Cal-Maine Foods, Inc. has an F-score of 7 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.

Cal-Maine Foods, Inc. Annual Data

May04May05May06May07May08May09May10May11May12May13
Q1 1001111111
Q2 1111111111
Q3 1011100010
Q4 1111111111
Q5 1001101111
Q6 1001111101
Q7 0110000000
Q8 1011100000
Q9 1011100011
F-score 8368845566

Cal-Maine Foods, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
Q1 1111111111
Q2 1111111111
Q3 0011110000
Q4 1110001101
Q5 1111111111
Q6 0101011111
Q7 0010000000
Q8 0000000011
Q9 1111111111
F-score 5676566667
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