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Campbell Soup Co (NYSE:CPB)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, 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

Campbell Soup Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

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

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 (Jul14) TTM:Last Year (Jul13) TTM:
Net Income was 172 + 325 + 184 + 137 = $818 Mil.
Cash Flow from Operations was 38 + 325 + 400 + 136 = $899 Mil.
Revenue was 2165 + 2281 + 1970 + 1852 = $8,268 Mil.
Gross Profit was 777 + 814 + 676 + 631 = $2,898 Mil.
Average Total Assets from the begining of this year (Jul13)
to the end of this year (Jul14) was
(8323 + 9055 + 8119 + 7964 + 8113) / 5 = $8,315 Mil.
Total Assets was $8,113 Mil.
Long-Term Debt was $2,244 Mil.
Total Current Assets was $2,100 Mil.
Total Current Liabilities was $2,989 Mil.
Net Income was 245 + 190 + 181 + -158 = $458 Mil.

Revenue was 2205 + 2162 + 1962 + 1723 = $8,052 Mil.
Gross Profit was 821 + 762 + 706 + 623 = $2,912 Mil.
Average Total Assets from the begining of last year (Jul12)
to the end of last year (Jul13) was
(6530 + 8747 + 8593 + 8453 + 8323) / 5 = $8,129 Mil.
Total Assets was $8,323 Mil.
Long-Term Debt was $2,544 Mil.
Total Current Assets was $2,221 Mil.
Total Current Liabilities was $3,282 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.

Campbell Soup Co's current net income (ttm) was 818. ==> 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.

Campbell Soup Co's current cash flow from operations (ttm) was 899. ==> 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 Jul13 to Jul14
=818/8314.8
=0.09837879

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jul12 to Jul13
=458/8129.2
=0.05634011

Campbell Soup Co's return on assets of this year was 0.09837879. Campbell Soup Co's return on assets of last year was 0.05634011. ==> 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.

Campbell Soup Co's current net income (ttm) was 818. Campbell Soup Co's current cash flow from operations (ttm) was 899. ==> 899 > 818 ==> 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: Jul14)=Long-Term Debt/Total Assets
=2244/8113
=0.27659312

Gearing (Last Year: Jul13)=Long-Term Debt/Total Assets
=2544/8323
=0.30565902

Campbell Soup Co's gearing of this year was 0.27659312. Campbell Soup Co's gearing of last year was 0.30565902. ==> 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: Jul14)=Total Current Assets/Total Current Liabilities
=2100/2989
=0.70257611

Current Ratio (Last Year: Jul13)=Total Current Assets/Total Current Liabilities
=2221/3282
=0.67672151

Campbell Soup Co's current ratio of this year was 0.70257611. Campbell Soup Co's current ratio of last year was 0.67672151. ==> 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.

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: TTM)=Gross Profit/Revenue
=2898/8268
=0.35050798

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2912/8052
=0.36164928

Campbell Soup Co's gross margin of this year was 0.35050798. Campbell Soup Co's gross margin of last year was 0.36164928. ==> 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 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 Jul13 to Jul14
=8268/8314.8
=0.99437148

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jul12 to Jul13
=8052/8129.2
=0.99050337

Campbell Soup Co's asset turnover of this year was 0.99437148. Campbell Soup Co's asset turnover of last year was 0.99050337. ==> 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+1+1+0+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Campbell Soup Co 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.

Campbell Soup Co Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
Q1 1111111111
Q2 1111111111
Q3 1111010001
Q4 1100111111
Q5 1101010111
Q6 1010101001
Q7 0011111111
Q8 0100110000
Q9 1101110011
F-score 7756785568

Campbell Soup Co Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
Q1 1111111111
Q2 1111111111
Q3 0000000001
Q4 1111111111
Q5 1110011111
Q6 0000000001
Q7 1111100111
Q8 0000000000
Q9 0000000011
F-score 5554444568
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