Switch to:
Crane Co (NYSE:CR)
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Crane Co has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

CR' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 7

4
8

During the past 13 years, the highest Piotroski F-Score of Crane 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 (Mar15) TTM:Last Year (Mar14) TTM:
Net Income was 59.697 + 28.079 + 56.212 + 51.1 = $195 Mil.
Cash Flow from Operations was 64.174 + 68.16 + 150.517 + -11.6 = $271 Mil.
Revenue was 750.096 + 727.413 + 730.658 + 678.8 = $2,887 Mil.
Gross Profit was 262.065 + 251.122 + 249.02 + 236.8 = $999 Mil.
Average Total Assets from the begining of this year (Mar14)
to the end of this year (Mar15) was
(3553.345 + 3632.763 + 3554.105 + 3450.785 + 3387.3) / 5 = $3515.6596 Mil.
Total Assets at the begining of this year (Mar14) was $3,553 Mil.
Long-Term Debt was $749 Mil.
Total Current Assets was $1,183 Mil.
Total Current Liabilities was $662 Mil.
Net Income was 54.874 + 57.131 + 49.706 + 48.7 = $210 Mil.

Revenue was 648.746 + 637.515 + 681.449 + 716.8 = $2,685 Mil.
Gross Profit was 222.721 + 216.198 + 226.851 + 254.1 = $920 Mil.
Average Total Assets from the begining of last year (Mar13)
to the end of last year (Mar14) was
(2850.103 + 2872.4 + 2858.145 + 3559.607 + 3553.345) / 5 = $3138.72 Mil.
Total Assets at the begining of last year (Mar13) was $2,850 Mil.
Long-Term Debt was $749 Mil.
Total Current Assets was $1,170 Mil.
Total Current Liabilities was $681 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.

Crane Co's current net income (TTM) was 195. ==> 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.

Crane Co's current cash flow from operations (TTM) was 271. ==> 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 (Mar14)
=195.088/3553.345
=0.05490263

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=210.411/2850.103
=0.07382575

Crane Co's return on assets of this year was 0.05490263. Crane Co's return on assets of last year was 0.07382575. ==> Last year is higher ==> Score 0.

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.

Crane Co's current net income (TTM) was 195. Crane Co's current cash flow from operations (TTM) was 271. ==> 271 > 195 ==> 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: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=749.2/3515.6596
=0.21310368

Gearing (Last Year: Mar14)=Long-Term Debt/Average Total Assets from Mar13 to Mar14
=749.181/3138.72
=0.23868998

Crane Co's gearing of this year was 0.21310368. Crane Co's gearing of last year was 0.23868998. ==> This year is lower or equal to last year. ==> Score 1.

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: Mar15)=Total Current Assets/Total Current Liabilities
=1182.7/661.6
=1.78763603

Current Ratio (Last Year: Mar14)=Total Current Assets/Total Current Liabilities
=1170.085/680.973
=1.71825462

Crane Co's current ratio of this year was 1.78763603. Crane Co's current ratio of last year was 1.71825462. ==> 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.

Crane Co's number of shares in issue this year was 58.9. Crane Co's number of shares in issue last year was 59.5. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=999.007/2886.967
=0.34604033

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=919.87/2684.51
=0.34265844

Crane Co's gross margin of this year was 0.34604033. Crane Co's gross margin of last year was 0.34265844. ==> 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 (Mar14)
=2886.967/3553.345
=0.81246459

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=2684.51/2850.103
=0.94189929

Crane Co's asset turnover of this year was 0.81246459. Crane Co's asset turnover of last year was 0.94189929. ==> 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+0+1+1+1+1+1+0
=7

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

Crane Co has an F-score of 7. 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


Historical Data

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

Crane Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1101111111
Question 2 1111111111
Question 3 1101110100
Question 4 1111101111
Question 5 1001101101
Question 6 1010100101
Question 7 0011001100
Question 8 1101111011
Question 9 0110011000
F-score 7657757746

Crane Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Question 1 1111111111
Question 2 1111111111
Question 3 1111000000
Question 4 1111111111
Question 5 1111000011
Question 6 1110000011
Question 7 1100000001
Question 8 0111111111
Question 9 0000011100
F-score 7876455567
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK