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Cantel Medical Corp (NYSE:CMN)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, 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

Cantel Medical Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

CMN' s 10-Year Piotroski F-Score Range
Min: 1   Max: 9
Current: 8

1
9

During the past 13 years, the highest Piotroski F-Score of Cantel Medical Corp was 9. The lowest was 1. 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 (Apr14) TTM:Last Year (Apr13) TTM:
Net Income was 10.213 + 11.185 + 11.126 + 10.249 = $42.8 Mil.
Cash Flow from Operations was 17.003 + 10.751 + 10.798 + 19.178 = $57.7 Mil.
Revenue was 113.973 + 118.272 + 119.042 + 120.058 = $471.3 Mil.
Gross Profit was 49.114 + 51.499 + 52.335 + 52.418 = $205.4 Mil.
Average Total Assets from the begining of this year (Apr13)
to the end of this year (Apr14) was
(484.364 + 487.671 + 485.818 + 493.185 + 497.875) / 5 = $489.8 Mil.
Total Assets was $497.9 Mil.
Long-Term Debt was $64.5 Mil.
Total Current Assets was $152.0 Mil.
Total Current Liabilities was $50.2 Mil.
Net Income was 9.649 + 9.576 + 10.452 + 8.998 = $38.7 Mil.

Revenue was 98.693 + 99.681 + 106.363 + 105.009 = $409.7 Mil.
Gross Profit was 42.777 + 43.727 + 45.151 + 45.484 = $177.1 Mil.
Average Total Assets from the begining of last year (Apr12)
to the end of last year (Apr13) was
(430.319 + 434.812 + 431.474 + 471.858 + 484.364) / 5 = $450.6 Mil.
Total Assets was $484.4 Mil.
Long-Term Debt was $95.0 Mil.
Total Current Assets was $145.2 Mil.
Total Current Liabilities was $56.3 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Cantel Medical Corp's current net income (ttm) was 42.8. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Cantel Medical Corp's current cash flow from operations (ttm) was 57.7. ==> 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 (TTM)/Average Total Assets from Apr13 to Apr14
=42.773/489.7826
=0.08733058

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Apr12 to Apr13
=38.675/450.5654
=0.0858366

Cantel Medical Corp's return on assets of this year was 0.08733058. Cantel Medical Corp's return on assets of last year was 0.0858366. ==> 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.

Cantel Medical Corp's current net income (ttm) was 42.8. Cantel Medical Corp's current cash flow from operations (ttm) was 57.7. ==> 57.7 > 42.8 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Apr14)=Long-Term Debt/Total Assets
=64.5/497.875
=0.12955059

Gearing (Last Year: Apr13)=Long-Term Debt/Total Assets
=95/484.364
=0.19613349

Cantel Medical Corp's gearing of this year was 0.12955059. Cantel Medical Corp's gearing of last year was 0.19613349. ==> This year is lower or equal to last year. ==> 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: Apr14)=Total Current Assets/Total Current Liabilities
=152.031/50.222
=3.02717932

Current Ratio (Last Year: Apr13)=Total Current Assets/Total Current Liabilities
=145.183/56.26
=2.58057234

Cantel Medical Corp's current ratio of this year was 3.02717932. Cantel Medical Corp's current ratio of last year was 2.58057234. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Cantel Medical Corp's number of shares in issue this year was 41. Cantel Medical Corp's number of shares in issue last year was 40.6. ==> There is larger 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: TTM)=Gross Profit/Revenue
=205.366/471.345
=0.43570209

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=177.139/409.746
=0.43231417

Cantel Medical Corp's gross margin of this year was 0.43570209. Cantel Medical Corp's gross margin of last year was 0.43231417. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout 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)/Average Total Assets from Apr13 to Apr14
=471.345/489.7826
=0.96235554

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Apr12 to Apr13
=409.746/450.5654
=0.90940405

Cantel Medical Corp's asset turnover of this year was 0.96235554. Cantel Medical Corp's asset turnover of last year was 0.90940405. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Cantel Medical Corp has an F-score of 8. 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, 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.

Cantel Medical Corp Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
Q1 1111111111
Q2 1111111111
Q3 1110111111
Q4 1100111111
Q5 1100111001
Q6 0001111101
Q7 0000000000
Q8 0101011011
Q9 0111100111
F-score 5745777668

Cantel Medical Corp Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Q1 1111111111
Q2 1111111111
Q3 0011111101
Q4 1111111111
Q5 0001111111
Q6 1101111111
Q7 0000000000
Q8 1111111011
Q9 0000000111
F-score 5557777778
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