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Cencosud SA (NYSE:CNCO)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, 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

Cencosud SA has an F-score of 7 indicating the company's financial situation is typical for a stable company.

CNCO' s 10-Year Piotroski F-Score Range
Min: 5   Max: 7
Current: 7

5
7

During the past 5 years, the highest Piotroski F-Score of Cencosud SA was 7. The lowest was 5. 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 (Dec13) TTM:Last Year (Jun12) TTM:
Net Income was 316.21611918 + 0 + 164.914151781 + 118.079257076 = $599 Mil.
Cash Flow from Operations was 500.782975248 + -679.508384531 + 826.443799496 + 38.4736247736 = $686 Mil.
Revenue was 5435.87596328 + 0 + 4944.8580152 + 3909.47122412 = $14,290 Mil.
Gross Profit was 1755.65263149 + 0 + 1560.24731525 + 1110.46468625 = $4,426 Mil.
Total Assets at the begining of this year (Jun12) was $13,732 Mil.
Total Assets was $17,872 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $4,323 Mil.
Total Current Liabilities was $5,241 Mil.
Net Income was 65.169713058 + 100.989843389 + 166.014515785 + 95.0179019141 = $427 Mil.

Revenue was 3902.4545687 + 3839.37110515 + 3898.73593345 + 3308.47735715 = $14,949 Mil.
Gross Profit was 1108.73250826 + 1060.40537128 + 1094.47894456 + 937.214442984 = $4,201 Mil.
Total Assets at the begining of last year (Jun11) was $11,623 Mil.
Total Assets was $13,732 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $3,367 Mil.
Total Current Liabilities was $4,236 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.

Cencosud SA's current net income was 599. ==> 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.

Cencosud SA's current cash flow from operations was 686. ==> 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 (Jun12)
=599.209528037/13732.1735573
=0.04363545

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun11)
=427.191974147/11623.1669306
=0.03675349

Cencosud SA's return on assets of this year was 0.04363545. Cencosud SA's return on assets of last year was 0.03675349. ==> 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.

Cencosud SA's current net income was 599. Cencosud SA's current cash flow from operations was 686. ==> 686 > 599 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=0/17872.1442754
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/13732.1735573
=0

Cencosud SA's gearing of this year was 0. Cencosud SA's gearing of last year was 0. ==> 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)=Total Current Assets/Total Current Liabilities
=4322.74733478/5241.12894456
=0.82477409

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=3367.41442878/4236.26444654
=0.79490185

Cencosud SA's current ratio of this year was 0.82477409. Cencosud SA's current ratio of last year was 0.79490185. ==> 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.

Cencosud SA's number of shares in issue this year was 927.8. Cencosud SA's number of shares in issue last year was 793. ==> 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)=Gross Profit/Revenue
=4426.36463298/14290.2052026
=0.30974815

Gross Margin (Last Year)=Gross Profit/Revenue
=4200.83126709/14949.0389645
=0.28101012

Cencosud SA's gross margin of this year was 0.30974815. Cencosud SA's gross margin of last year was 0.28101012. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun12)
=14290.2052026/13732.1735573
=1.0406368

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun11)
=14949.0389645/11623.1669306
=1.28614164

Cencosud SA's asset turnover of this year was 1.0406368. Cencosud SA's asset turnover of last year was 1.28614164. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+1+0
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Cencosud SA has an F-score of 7 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.

Cencosud SA Annual Data

Dec09Dec10Dec11Dec12Dec13
Q1 1
Q2 1
Q3 0
Q4 1
Q5 1
Q6 1
Q7 0
Q8 1
Q9 0
F-score 6

Cencosud SA Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Sep13Dec13
Q1 11111
Q2 11111
Q3 00001
Q4 10101
Q5 10111
Q6 00011
Q7 00010
Q8 00111
Q9 10100
F-score 0005452667
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