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Cencosud SA (NYSE:CNCO)
Piotroski F-Score
5 (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 5 indicating the company's financial situation is typical for a stable company.

CNCO' s 10-Year Piotroski F-Score Range
Min: 2   Max: 7
Current: 5

2
7

During the past 5 years, the highest Piotroski F-Score of Cencosud SA was 7. The lowest was 2. 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 (Jun14) TTM:Last Year (Dec12) TTM:
Net Income was 0 + 74.7086280997 + 303.725814374 + 0 = $378 Mil.
Cash Flow from Operations was -673.769290855 + 21.1009891872 + 481.002414981 + -401.538143398 = $-573 Mil.
Revenue was 0 + 4113.2591244 + 5221.1628492 + 0 = $9,334 Mil.
Gross Profit was 0 + 1106.50244909 + 1686.30564007 + 0 = $2,793 Mil.
Average Total Assets from the begining of this year (Dec12)
to the end of this year (Jun14) was
(16617.6447846 + 0 + 16307.6979619 + 17166.2076833 + 17640.0216939) / 5 = $13,546 Mil.
Total Assets was $17,640 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $4,664 Mil.
Total Current Liabilities was $4,440 Mil.
Net Income was 97.0008186377 + 62.5955571853 + 113.415213016 + 158.400163728 = $431 Mil.

Revenue was 3687.71876215 + 3748.31047515 + 3755.04997783 + 4749.53974997 = $15,941 Mil.
Gross Profit was 1018.52013678 + 1064.93838728 + 1066.60214551 + 1498.61869052 = $4,649 Mil.
Average Total Assets from the begining of last year (Dec11)
to the end of last year (Dec12) was
(13036.9543303 + 13122.6143483 + 13189.7627725 + 13162.2095866 + 16617.6447846) / 5 = $13,826 Mil.
Total Assets was $16,618 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $3,951 Mil.
Total Current Liabilities was $5,691 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.

Cencosud SA's current net income (ttm) was 378. ==> 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.

Cencosud SA's current cash flow from operations (ttm) was -573. ==> 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)/Average Total Assets from Dec12 to Jun14
=378.434442474/13546.3144247
=0.02793634

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Dec11 to Dec12
=431.411752567/13825.8371644
=0.0312033

Cencosud SA's return on assets of this year was 0.02793634. Cencosud SA's return on assets of last year was 0.0312033. ==> 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.

Cencosud SA's current net income (ttm) was 378. Cencosud SA's current cash flow from operations (ttm) was -573. ==> -573 =< 378 ==> CFROA =< ROA ==> Score 0.

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: Jun14)=Long-Term Debt/Total Assets
=0/17640.0216939
=0

Gearing (Last Year: Dec12)=Long-Term Debt/Total Assets
=0/16617.6447846
=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: Jun14)=Total Current Assets/Total Current Liabilities
=4663.56364737/4440.47447385
=1.05023994

Current Ratio (Last Year: Dec12)=Total Current Assets/Total Current Liabilities
=3951.31072074/5690.6058959
=0.69435677

Cencosud SA's current ratio of this year was 1.05023994. Cencosud SA's current ratio of last year was 0.69435677. ==> 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 0. Cencosud SA's number of shares in issue last year was 783.3. ==> 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
=2792.80808916/9334.4219736
=0.29919454

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4648.6793601/15940.6189651
=0.29162477

Cencosud SA's gross margin of this year was 0.29919454. Cencosud SA's gross margin of last year was 0.29162477. ==> 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 Dec12 to Jun14
=9334.4219736/13546.3144247
=0.68907466

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Dec11 to Dec12
=15940.6189651/13825.8371644
=1.15295868

Cencosud SA's asset turnover of this year was 0.68907466. Cencosud SA's asset turnover of last year was 1.15295868. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+0+0+0+1+1+1+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Cencosud SA has an F-score of 5 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.

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

Sep11Dec11Mar12Jun12Sep12Dec12Jun13Sep13Dec13Jun14
Q1 111111
Q2 111110
Q3 000010
Q4 101010
Q5 101111
Q6 000101
Q7 000101
Q8 001111
Q9 111000
F-score 0545260665
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