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GuruFocus has detected 8 Warning Signs with Crown Castle International Corp $CCI.
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Crown Castle International Corp (NYSE:CCI)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

Crown Castle International Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

CCI' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 8
Current: 6

4
8

During the past 13 years, the highest Piotroski F-Score of Crown Castle International Corp was 8. The lowest was 4. And the median was 5.


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 local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was 47.84 + 86.058 + 98.366 + 124.71 = $357 Mil.
Cash Flow from Operations was 437.656 + 480.525 + 386.534 + 477.549 = $1,782 Mil.
Revenue was 934.384 + 962.409 + 992.016 + 1032.416 = $3,921 Mil.
Gross Profit was 600.792 + 613.69 + 626.038 + 640.184 = $2,481 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(21936.966 + 21718.251 + 22153.074 + 22171.723 + 22675.092) / 5 = $22131.0212 Mil.
Total Assets at the begining of this year (Dec15) was $21,937 Mil.
Long-Term Debt was $12,069 Mil.
Total Current Assets was $1,325 Mil.
Total Current Liabilities was $961 Mil.
Net Income was 122.787 + 1153.36 + 103.779 + 141.066 = $1,521 Mil.

Revenue was 900.471 + 899.437 + 918.107 + 945.836 = $3,664 Mil.
Gross Profit was 581.34 + 573.006 + 584.248 + 603.831 = $2,342 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(21143.276 + 21105.477 + 21011.629 + 21995.644 + 21936.966) / 5 = $21438.5984 Mil.
Total Assets at the begining of last year (Dec14) was $21,143 Mil.
Long-Term Debt was $12,044 Mil.
Total Current Assets was $981 Mil.
Total Current Liabilities was $855 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.

Crown Castle International Corp's current net income (TTM) was 357. ==> 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.

Crown Castle International Corp's current cash flow from operations (TTM) was 1,782. ==> 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 (Dec15)
=356.974/21936.966
=0.01627272

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=1520.992/21143.276
=0.07193739

Crown Castle International Corp's return on assets of this year was 0.01627272. Crown Castle International Corp's return on assets of last year was 0.07193739. ==> 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.

Crown Castle International Corp's current net income (TTM) was 357. Crown Castle International Corp's current cash flow from operations (TTM) was 1,782. ==> 1,782 > 357 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=12069.393/22131.0212
=0.54536087

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=12043.74/21438.5984
=0.56177833

Crown Castle International Corp's gearing of this year was 0.54536087. Crown Castle International Corp's gearing of last year was 0.56177833. ==> 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: Dec16)=Total Current Assets/Total Current Liabilities
=1324.761/961.355
=1.37801437

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=981.245/855.369
=1.14715988

Crown Castle International Corp's current ratio of this year was 1.37801437. Crown Castle International Corp's current ratio of last year was 1.14715988. ==> 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.

Crown Castle International Corp's number of shares in issue this year was 340.9. Crown Castle International Corp's number of shares in issue last year was 334.1. ==> 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
=2480.704/3921.225
=0.63263495

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2342.425/3663.851
=0.63933413

Crown Castle International Corp's gross margin of this year was 0.63263495. Crown Castle International Corp's gross margin of last year was 0.63933413. ==> 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 (Dec15)
=3921.225/21936.966
=0.17874965

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=3663.851/21143.276
=0.17328682

Crown Castle International Corp's asset turnover of this year was 0.17874965. Crown Castle International Corp's asset turnover of last year was 0.17328682. ==> 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+0+1+1+1+0+0+1
=6

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

Crown Castle International Corp has an F-score of 6 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 local exchange's currency.

Crown Castle International Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 0000111111
Question 2 1111111111
Question 3 0100110110
Question 4 1111111111
Question 5 1100001111
Question 6 0010100101
Question 7 0000100000
Question 8 0111100010
Question 9 1011110001
F-score 4554854666

Crown Castle International Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 1111111111
Question 2 1111111111
Question 3 1111111000
Question 4 1111111111
Question 5 1111111001
Question 6 0101100001
Question 7 0000000000
Question 8 0000011110
Question 9 0000001101
F-score 5656667546
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