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Core-Mark Holding Co Inc (NAS:CORE)
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

Core-Mark Holding Co Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

CORE' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 7

3
9

During the past 13 years, the highest Piotroski F-Score of Core-Mark Holding Co Inc 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 12.3 + 15 + 2.4 + 12 = $42 Mil.
Cash Flow from Operations was 23.4 + -0.1 + 77.6 + -10.6 = $90 Mil.
Revenue was 2620.7 + 2491.3 + 2300.9 + 2623.2 = $10,036 Mil.
Gross Profit was 140.8 + 143.3 + 124.4 + 143.3 = $552 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(945.1 + 922.4 + 956.8 + 865.5 + 930) / 5 = $924 Mil.
Total Assets was $930 Mil.
Long-Term Debt was $18 Mil.
Total Current Assets was $735 Mil.
Total Current Liabilities was $411 Mil.
Net Income was 10.5 + 9.7 + 2.6 + 11.7 = $35 Mil.

Revenue was 2314.9 + 2189.5 + 2145.7 + 2509.9 = $9,160 Mil.
Gross Profit was 122.2 + 121.9 + 116 + 137 = $497 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(850.6 + 812.6 + 919.2 + 836.3 + 945.1) / 5 = $873 Mil.
Total Assets was $945 Mil.
Long-Term Debt was $59 Mil.
Total Current Assets was $760 Mil.
Total Current Liabilities was $412 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.

Core-Mark Holding Co Inc's current net income (ttm) was 42. ==> 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.

Core-Mark Holding Co Inc's current cash flow from operations (ttm) was 90. ==> 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 Jun13 to Jun14
=41.7/923.96
=0.04513182

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=34.5/872.76
=0.03952977

Core-Mark Holding Co Inc's return on assets of this year was 0.04513182. Core-Mark Holding Co Inc's return on assets of last year was 0.03952977. ==> 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.

Core-Mark Holding Co Inc's current net income (ttm) was 42. Core-Mark Holding Co Inc's current cash flow from operations (ttm) was 90. ==> 90 > 42 ==> 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: Jun14)=Long-Term Debt/Total Assets
=18/930
=0.01935484

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=58.6/945.1
=0.06200402

Core-Mark Holding Co Inc's gearing of this year was 0.01935484. Core-Mark Holding Co Inc's gearing of last year was 0.06200402. ==> 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
=735.2/410.8
=1.78967868

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=759.9/411.6
=1.84620991

Core-Mark Holding Co Inc's current ratio of this year was 1.78967868. Core-Mark Holding Co Inc's current ratio of last year was 1.84620991. ==> 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.

Core-Mark Holding Co Inc's number of shares in issue this year was 23.2. Core-Mark Holding Co Inc's number of shares in issue last year was 23.2. ==> 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
=551.8/10036.1
=0.05498152

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=497.1/9160
=0.05426856

Core-Mark Holding Co Inc's gross margin of this year was 0.05498152. Core-Mark Holding Co Inc's gross margin of last year was 0.05426856. ==> 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 Jun13 to Jun14
=10036.1/923.96
=10.86205031

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=9160/872.76
=10.49543975

Core-Mark Holding Co Inc's asset turnover of this year was 10.86205031. Core-Mark Holding Co Inc's asset turnover of last year was 10.49543975. ==> 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+0+1+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Core-Mark Holding Co Inc 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.

Core-Mark Holding Co Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 111111111
Q2 111111111
Q3 0010111
Q4 1101011
Q5 0011001
Q6 1010010
Q7 0110011
Q8 0010111
Q9 1011111
F-score 5485588

Core-Mark Holding Co Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 1111111111
Q4 1111111111
Q5 0110000111
Q6 0011101000
Q7 1110111111
Q8 1101111111
Q9 0111100111
F-score 7786778887
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