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Campbell Soup Co (NYSE:CPB)
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

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

CPB' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 5

4
8

During the past 13 years, the highest Piotroski F-Score of Campbell Soup Co was 8. The lowest was 4. 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 184 + 325 + 172 + -158 = $523 Mil.
Cash Flow from Operations was 400 + 325 + 38 + 155 = $918 Mil.
Revenue was 1970 + 2281 + 2165 + 1723 = $8,139 Mil.
Gross Profit was 676 + 814 + 777 + 623 = $2,890 Mil.
Total Assets at the begining of this year (Apr13) was $8,453 Mil.
Total Assets was $7,964 Mil.
Long-Term Debt was $2,247 Mil.
Total Current Assets was $1,947 Mil.
Total Current Liabilities was $2,817 Mil.
Net Income was 181 + 190 + 245 + 127 = $743 Mil.

Revenue was 1962 + 2162 + 2205 + 1081 = $7,410 Mil.
Gross Profit was 706 + 762 + 821 + 439 = $2,728 Mil.
Total Assets at the begining of last year (Apr12) was $6,492 Mil.
Total Assets was $8,453 Mil.
Long-Term Debt was $2,944 Mil.
Total Current Assets was $2,177 Mil.
Total Current Liabilities was $2,604 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.

Campbell Soup Co's current net income was 523. ==> 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.

Campbell Soup Co's current cash flow from operations was 918. ==> 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 (Apr13)
=523/8453
=0.06187152

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Apr12)
=743/6492
=0.11444855

Campbell Soup Co's return on assets of this year was 0.06187152. Campbell Soup Co's return on assets of last year was 0.11444855. ==> 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.

Campbell Soup Co's current net income was 523. Campbell Soup Co's current cash flow from operations was 918. ==> 918 > 523 ==> 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
=2247/7964
=0.28214465

Gearing (Last Year)=Long-Term Debt/Total Assets
=2944/8453
=0.34827872

Campbell Soup Co's gearing of this year was 0.28214465. Campbell Soup Co's gearing of last year was 0.34827872. ==> 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
=1947/2817
=0.69116081

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2177/2604
=0.83602151

Campbell Soup Co's current ratio of this year was 0.69116081. Campbell Soup Co's current ratio of last year was 0.83602151. ==> 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.

Campbell Soup Co's number of shares in issue this year was 316. Campbell Soup Co's number of shares in issue last year was 317. ==> 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)=Gross Profit/Revenue
=2890/8139
=0.35508048

Gross Margin (Last Year)=Gross Profit/Revenue
=2728/7410
=0.36815115

Campbell Soup Co's gross margin of this year was 0.35508048. Campbell Soup Co's gross margin of last year was 0.36815115. ==> Last year's gross margin is higher ==> Score 0.

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 (Apr13)
=8139/8453
=0.96285342

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Apr12)
=7410/6492
=1.14140481

Campbell Soup Co's asset turnover of this year was 0.96285342. Campbell Soup Co's asset turnover of last year was 1.14140481. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Campbell Soup Co 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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Campbell Soup Co Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
Q1 1111111111
Q2 1111111111
Q3 1110101000
Q4 1110011111
Q5 0110101011
Q6 1101010100
Q7 0001111111
Q8 0010011000
Q9 0010101001
F-score 5674668556

Campbell Soup Co Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Q1 1111111111
Q2 1111111111
Q3 0000010000
Q4 1111111111
Q5 0111001111
Q6 1000000000
Q7 1111110011
Q8 0000000000
Q9 0000111000
F-score 5555565455
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