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Crown Castle International Corp (NYSE:CCI)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

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

Crown Castle International Corp has an F-score of 4 indicating the company's financial situation is typical for a stable company.

CCI' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 4

3
8

During the past 13 years, the highest Piotroski F-Score of Crown Castle International Corp was 8. The lowest was 3. 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 own currency.

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was -23.546 + 45.836 + 52.359 + 15.462 = $90 Mil.
Cash Flow from Operations was 398.79 + 278.839 + 273.401 + 286.626 = $1,238 Mil.
Revenue was 798.419 + 748.977 + 734.928 + 740.06 = $3,022 Mil.
Gross Profit was 519.784 + 485.013 + 485.714 + 485.077 = $1,976 Mil.
Total Assets at the begining of this year (Dec12) was $16,089 Mil.
Total Assets was $20,595 Mil.
Long-Term Debt was $11,491 Mil.
Total Current Assets was $893 Mil.
Total Current Liabilities was $756 Mil.
Net Income was -19.505 + 42.045 + 116.013 + 50.031 = $189 Mil.

Revenue was 674.087 + 621.337 + 585.511 + 551.745 = $2,433 Mil.
Gross Profit was 456.666 + 435.994 + 413.678 + 397.353 = $1,704 Mil.
Total Assets at the begining of last year (Dec11) was $10,545 Mil.
Total Assets was $16,089 Mil.
Long-Term Debt was $10,923 Mil.
Total Current Assets was $1,581 Mil.
Total Current Liabilities was $1,238 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.

Crown Castle International Corp's current net income was 90. ==> 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.

Crown Castle International Corp's current cash flow from operations was 1,238. ==> 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 (Dec12)
=90.111/16088.709
=0.00560088

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=188.584/10545.096
=0.01788357

Crown Castle International Corp's return on assets of this year was 0.00560088. Crown Castle International Corp's return on assets of last year was 0.01788357. ==> 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.

Crown Castle International Corp's current net income was 90. Crown Castle International Corp's current cash flow from operations was 1,238. ==> 1,238 > 90 ==> 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
=11490.914/20594.908
=0.55794928

Gearing (Last Year)=Long-Term Debt/Total Assets
=10923.186/16088.709
=0.6789349

Crown Castle International Corp's gearing of this year was 0.55794928. Crown Castle International Corp's gearing of last year was 0.6789349. ==> 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
=892.683/756.387
=1.18019347

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1581.324/1237.858
=1.27746801

Crown Castle International Corp's current ratio of this year was 1.18019347. Crown Castle International Corp's current ratio of last year was 1.27746801. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Crown Castle International Corp's number of shares in issue this year was 321. Crown Castle International Corp's number of shares in issue last year was 293.5. ==> 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
=1975.588/3022.384
=0.65365222

Gross Margin (Last Year)=Gross Profit/Revenue
=1703.691/2432.68
=0.70033502

Crown Castle International Corp's gross margin of this year was 0.65365222. Crown Castle International Corp's gross margin of last year was 0.70033502. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec12)
=3022.384/16088.709
=0.18785746

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=2432.68/10545.096
=0.23069302

Crown Castle International Corp's asset turnover of this year was 0.18785746. Crown Castle International Corp's asset turnover of last year was 0.23069302. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+0+0+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Crown Castle International Corp has an F-score of 4 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.

Crown Castle International Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1000000111
Q2 1111111111
Q3 1010100110
Q4 0111111111
Q5 1001100001
Q6 0010010100
Q7 0110000100
Q8 1110111100
Q9 1111011110
F-score 6574554854

Crown Castle International Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1111110000
Q4 1111111111
Q5 0000100001
Q6 1111100010
Q7 1110000010
Q8 1111100000
Q9 1111111110
F-score 8887854464
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