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ConocoPhillips (NYSE:COP)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

ConocoPhillips has an F-score of 5 indicating the company's financial situation is typical for a stable company.

COP' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 5

3
9

During the past 13 years, the highest Piotroski F-Score of ConocoPhillips was 9. The lowest was 3. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 2487 + 2123 + 2081 + 2704 = $9,395 Mil.
Cash Flow from Operations was 3911 + 6336 + 3622 + 4180 = $18,049 Mil.
Revenue was 13985 + 16048 + 14701 + 12917 = $57,651 Mil.
Gross Profit was 5256 + 6730 + 7176 + 6173 = $25,335 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(119760 + 118057 + 120025 + 121648 + 118986) / 5 = $119,695 Mil.
Total Assets as of Sep13 was $119,760 Mil.
Long-Term Debt was $19,499 Mil.
Total Current Assets was $16,253 Mil.
Total Current Liabilities was $14,141 Mil.
Net Income was 1426 + 2139 + 2050 + 2480 = $8,095 Mil.

Revenue was 15279 + 14651 + 14142 + 15470 = $59,542 Mil.
Gross Profit was 6468 + 6853 + 6949 + 7800 = $28,070 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(115369 + 117144 + 117780 + 116947 + 119760) / 5 = $117,400 Mil.
Total Assets as of Sep12 was $115,369 Mil.
Long-Term Debt was $21,096 Mil.
Total Current Assets was $22,557 Mil.
Total Current Liabilities was $16,335 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

ConocoPhillips's current net income (ttm) was 9,395. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

ConocoPhillips's current cash flow from operations (ttm) was 18,049. ==> 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)/Beginning of This Year Total Assets (Sep13)
=9395/119760
=0.07844856

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=8095/115369
=0.07016616

ConocoPhillips's return on assets of this year was 0.07844856. ConocoPhillips's return on assets of last year was 0.07016616. ==> 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.

ConocoPhillips's current net income (ttm) was 9,395. ConocoPhillips's current cash flow from operations (ttm) was 18,049. ==> 18,049 > 9,395 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=19499/119695.2
=0.16290545

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=21096/117400
=0.17969336

ConocoPhillips's gearing of this year was 0.16290545. ConocoPhillips's gearing of last year was 0.17969336. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=16253/14141
=1.14935295

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=22557/16335
=1.38089991

ConocoPhillips's current ratio of this year was 1.14935295. ConocoPhillips's current ratio of last year was 1.38089991. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

ConocoPhillips's number of shares in issue this year was 1247.4. ConocoPhillips's number of shares in issue last year was 1240.4. ==> 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
=25335/57651
=0.43945465

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=28070/59542
=0.47143193

ConocoPhillips's gross margin of this year was 0.43945465. ConocoPhillips's gross margin of last year was 0.47143193. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by begining of the year total assets) 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)/Beginning of This Year Total Assets (Sep13)
=57651/119760
=0.48138778

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=59542/115369
=0.51610051

ConocoPhillips's asset turnover of this year was 0.48138778. ConocoPhillips's asset turnover of last year was 0.51610051. ==> 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+0+0+0+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

ConocoPhillips 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.

ConocoPhillips Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111011111
Q2 1111111111
Q3 1100011101
Q4 1111111111
Q5 1101001100
Q6 1010101010
Q7 0000111111
Q8 1001001011
Q9 1100101101
F-score 8645559767

ConocoPhillips Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0000011111
Q4 1111111111
Q5 1100000011
Q6 0011110000
Q7 1111100000
Q8 1111111000
Q9 0000000100
F-score 6666665555
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