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

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 Piotroski F-Score Range Over the Past 10 Years
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 7.


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 143.023 + 109.23 + 64.164 + -0.376 = $316 Mil.
Cash Flow from Operations was 154.115 + 146.337 + 32.268 + 49.118 = $382 Mil.
Revenue was 609.895 + 545.975 + 449.76 + 303.02 = $1,909 Mil.
Gross Profit was 263.071 + 211.597 + 132.726 + 40.68 = $648 Mil.
Average Total Assets from the begining of this year (May15)
to the end of this year (May16) was
(928.653 + 1136.166 + 1192.307 + 1124.232 + 1111.765) / 5 = $1098.6246 Mil.
Total Assets at the begining of this year (May15) was $929 Mil.
Long-Term Debt was $9 Mil.
Total Current Assets was $626 Mil.
Total Current Liabilities was $83 Mil.
Net Income was 27.655 + 36.603 + 50.882 + 46.114 = $161 Mil.

Revenue was 356.944 + 378.617 + 437.556 + 403.011 = $1,576 Mil.
Gross Profit was 81.101 + 92.709 + 112.517 + 109.394 = $396 Mil.
Average Total Assets from the begining of last year (May14)
to the end of last year (May15) was
(811.661 + 829.358 + 868.588 + 900.749 + 928.653) / 5 = $867.8018 Mil.
Total Assets at the begining of last year (May14) was $812 Mil.
Long-Term Debt was $41 Mil.
Total Current Assets was $509 Mil.
Total Current Liabilities was $102 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.

Cal-Maine Foods Inc's current net income (TTM) was 316. ==> Positive ==> Score 1.

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.

Cal-Maine Foods Inc's current cash flow from operations (TTM) was 382. ==> 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)
=316.041/928.653
=0.34032195

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (May14)
=161.254/811.661
=0.19867161

Cal-Maine Foods Inc's return on assets of this year was 0.34032195. Cal-Maine Foods Inc's return on assets of last year was 0.19867161. ==> This year is higher. ==> Score 1.

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.

Cal-Maine Foods Inc's current net income (TTM) was 316. Cal-Maine Foods Inc's current cash flow from operations (TTM) was 382. ==> 382 > 316 ==> 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
=9.25/1098.6246
=0.00841962

Gearing (Last Year: May15)=Long-Term Debt/Average Total Assets from May14 to May15
=40.795/867.8018
=0.04700958

Cal-Maine Foods Inc's gearing of this year was 0.00841962. Cal-Maine Foods Inc's gearing of last year was 0.04700958. ==> 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
=626.283/83.451
=7.50479922

Current Ratio (Last Year: May15)=Total Current Assets/Total Current Liabilities
=508.964/101.546
=5.01215213

Cal-Maine Foods Inc's current ratio of this year was 7.50479922. Cal-Maine Foods Inc's current ratio of last year was 5.01215213. ==> 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.

Cal-Maine Foods Inc's number of shares in issue this year was 48.4. Cal-Maine Foods Inc's number of shares in issue last year was 48.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=648.074/1908.65
=0.33954575

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=395.721/1576.128
=0.25107161

Cal-Maine Foods Inc's gross margin of this year was 0.33954575. Cal-Maine Foods Inc's gross margin of last year was 0.25107161. ==> 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)
=1908.65/928.653
=2.05528868

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (May14)
=1576.128/811.661
=1.94185504

Cal-Maine Foods Inc's asset turnover of this year was 2.05528868. Cal-Maine Foods Inc's asset turnover of last year was 1.94185504. ==> 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
=1+1+1+1+1+1+1+1+1
=9

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

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

May07May08May09May10May11May12May13May14May15May16
Question 1 1111111111
Question 2 1111111111
Question 3 1100010111
Question 4 1111111111
Question 5 1101111111
Question 6 1111101111
Question 7 0000010001
Question 8 1100000111
Question 9 1100011111
F-score 8845576889

Cal-Maine Foods Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
Question 1 1111111111
Question 2 1111111111
Question 3 0111111111
Question 4 1111111111
Question 5 1111111111
Question 6 1100110011
Question 7 0000000111
Question 8 1111111111
Question 9 1111111111
F-score 7877887899
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