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Capital Bank Financial Corp (NAS:CBF)
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 = 8 or 9
Bad or low score = 0 or 1

Capital Bank Financial Corp has an F-score of 3 indicating the company's financial situation is typical for a stable company.

CBF' s 10-Year Piotroski F-Score Range
Min: 2   Max: 3
Current: 3

2
3

During the past 5 years, the highest Piotroski F-Score of Capital Bank Financial Corp was 3. The lowest was 2. And the median was 3.


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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 12.206 + 11.414 + 12.425 + 13.243 = $49.3 Mil.
Cash Flow from Operations was -2.586 + 5.876 + -19.252 + 11.642 = $-4.3 Mil.
Revenue was 78.994 + 73.822 + 72.718 + 71.382 = $296.9 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0.0 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(6601.311 + 6617.561 + 6548.624 + 6624.006 + 6690.299) / 5 = $6,616.4 Mil.
Total Assets as of Sep13 was $6,601.3 Mil.
Long-Term Debt was $365.5 Mil.
Total Current Assets was $0.0 Mil.
Total Current Liabilities was $0.0 Mil.
Net Income was 4.644 + 5.765 + 9.429 + 11.444 = $31.3 Mil.

Revenue was 83.131 + 78.023 + 78.858 + 80.666 = $320.7 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0.0 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(6237.178 + 7306.953 + 7083.88 + 6796.976 + 6601.311) / 5 = $6,805.3 Mil.
Total Assets as of Sep12 was $6,237.2 Mil.
Long-Term Debt was $139.6 Mil.
Total Current Assets was $0.0 Mil.
Total Current Liabilities was $0.0 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Capital Bank Financial Corp's current net income (ttm) was 49.3. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Capital Bank Financial Corp's current cash flow from operations (ttm) was -4.3. ==> Negative ==> Score 0.

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 (TTM)/Beginning of This Year Total Assets (Sep13)
=49.288/6601.311
=0.0074664

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=31.282/6237.178
=0.00501541

Capital Bank Financial Corp's return on assets of this year was 0.0074664. Capital Bank Financial Corp's return on assets of last year was 0.00501541. ==> 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.

Capital Bank Financial Corp's current net income (ttm) was 49.3. Capital Bank Financial Corp's current cash flow from operations (ttm) was -4.3. ==> -4.3 =< 49.3 ==> CFROA =< ROA ==> Score 0.

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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=365.534/6616.3602
=0.05524699

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=139.614/6805.2596
=0.0205156

Capital Bank Financial Corp's gearing of this year was 0.05524699. Capital Bank Financial Corp's gearing of last year was 0.0205156. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=0/0
=

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=0/0
=

Capital Bank Financial Corp's current ratio of this year was . Capital Bank Financial Corp's current ratio of last year was . ==> Last year's current ratio is higher ==> Score 0.

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.

Capital Bank Financial Corp's number of shares in issue this year was 49.1. Capital Bank Financial Corp's number of shares in issue last year was 52.8. ==> 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: TTM)=Gross Profit/Revenue
=0/296.916
=0

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=0/320.678
=0

Capital Bank Financial Corp's gross margin of this year was 0. Capital Bank Financial Corp's gross margin of last year was 0. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by begining of the year total assets) 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)/Beginning of This Year Total Assets (Sep13)
=296.916/6601.311
=0.04497834

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=320.678/6237.178
=0.05141396

Capital Bank Financial Corp's asset turnover of this year was 0.04497834. Capital Bank Financial Corp's asset turnover of last year was 0.05141396. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+0+1+0+0+0+1+0+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Capital Bank Financial Corp has an F-score of 3 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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Capital Bank Financial Corp Annual Data

Dec09Dec10Dec11Dec12Dec13
Q1 1
Q2 0
Q3 0
Q4 0
Q5 0
Q6 0
Q7 0
Q8 0
Q9 0
F-score 1

Capital Bank Financial Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111
Q2 0000110
Q3 1100001
Q4 0000000
Q5 1110000
Q6 0000000
Q7 0001111
Q8 0000000
Q9 0010000
F-score 0033332333
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