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Copart Inc (NAS:CPRT)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Copart Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

CPRT' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 6

3
9

During the past 13 years, the highest Piotroski F-Score of Copart 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 (Apr15) TTM:Last Year (Apr14) TTM:
Net Income was 51.043 + 52.615 + 52.193 + 57.563 = $213 Mil.
Cash Flow from Operations was 54.96 + 83.366 + 5.517 + 114.486 = $258 Mil.
Revenue was 287.45 + 290.386 + 276.258 + 297.142 = $1,151 Mil.
Gross Profit was 116.939 + 122.308 + 114.867 + 127.417 = $482 Mil.
Average Total Assets from the begining of this year (Apr14)
to the end of this year (Apr15) was
(1476.672 + 1506.804 + 1536.586 + 1952.071 + 2002.977) / 5 = $1695.022 Mil.
Total Assets at the begining of this year (Apr14) was $1,477 Mil.
Long-Term Debt was $600 Mil.
Total Current Assets was $954 Mil.
Total Current Liabilities was $229 Mil.
Net Income was 41.304 + 41.422 + 45.345 + 40.877 = $169 Mil.

Revenue was 263.697 + 279.883 + 286.434 + 309.722 = $1,140 Mil.
Gross Profit was 103.072 + 107.836 + 111.546 + 132.252 = $455 Mil.
Average Total Assets from the begining of last year (Apr13)
to the end of last year (Apr14) was
(1298.682 + 1334.481 + 1397.388 + 1438.493 + 1476.672) / 5 = $1389.1432 Mil.
Total Assets at the begining of last year (Apr13) was $1,299 Mil.
Long-Term Debt was $242 Mil.
Total Current Assets was $386 Mil.
Total Current Liabilities was $257 Mil.

Profitability

Question 1. 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.

Copart Inc's current net income (TTM) was 213. ==> Positive ==> Score 1.

Question 2. 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.

Copart Inc's current cash flow from operations (TTM) was 258. ==> Positive ==> Score 1.

Question 3. 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)/Total Assets at the Beginning of This Year (Apr14)
=213.414/1476.672
=0.14452363

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Apr13)
=168.948/1298.682
=0.13009189

Copart Inc's return on assets of this year was 0.14452363. Copart Inc's return on assets of last year was 0.13009189. ==> This year is higher. ==> Score 1.

Question 4. 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.

Copart Inc's current net income (TTM) was 213. Copart Inc's current cash flow from operations (TTM) was 258. ==> 258 > 213 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Apr15)=Long-Term Debt/Average Total Assets from Apr14 to Apr15
=599.951/1695.022
=0.3539488

Gearing (Last Year: Apr14)=Long-Term Debt/Average Total Assets from Apr13 to Apr14
=242.106/1389.1432
=0.17428441

Copart Inc's gearing of this year was 0.3539488. Copart Inc's gearing of last year was 0.17428441. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Apr15)=Total Current Assets/Total Current Liabilities
=954.459/229.448
=4.15980527

Current Ratio (Last Year: Apr14)=Total Current Assets/Total Current Liabilities
=385.754/256.742
=1.50249667

Copart Inc's current ratio of this year was 4.15980527. Copart Inc's current ratio of last year was 1.50249667. ==> This year's current ratio is higher. ==> Score 1.

Question 7. 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.

Copart Inc's number of shares in issue this year was 132.1. Copart Inc's number of shares in issue last year was 131.5. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. 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
=481.531/1151.236
=0.41827306

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=454.706/1139.736
=0.3989573

Copart Inc's gross margin of this year was 0.41827306. Copart Inc's gross margin of last year was 0.3989573. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year 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 (TTM)/Total Assets at the Beginning of This Year (Apr14)
=1151.236/1476.672
=0.77961524

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Apr13)
=1139.736/1298.682
=0.87760976

Copart Inc's asset turnover of this year was 0.77961524. Copart Inc's asset turnover of last year was 0.87760976. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Copart Inc has an F-score of 6 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.

Copart Inc Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
Question 1 1111111111
Question 2 1111111111
Question 3 1011000100
Question 4 1111111111
Question 5 1111100011
Question 6 1100110101
Question 7 0111101100
Question 8 1010110101
Question 9 1001100110
F-score 8677854856

Copart Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
Question 1 1111111111
Question 2 1111111111
Question 3 1100000001
Question 4 1111111111
Question 5 1111111100
Question 6 0000001111
Question 7 1000000000
Question 8 0000001111
Question 9 1111110000
F-score 7655556656
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