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Carrizo Oil & Gas Inc (NAS:CRZO)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

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

CRZO' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 6

2
8

During the past 13 years, the highest Piotroski F-Score of Carrizo Oil & Gas Inc was 8. The lowest was 2. 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 2.319 + 5.976 + -23.989 + 4.521 = $-11.2 Mil.
Cash Flow from Operations was 92.352 + 102.391 + 56.998 + 96.211 = $348.0 Mil.
Revenue was 193.475 + 157.212 + 129.728 + 144.329 = $624.7 Mil.
Gross Profit was 166.009 + 137.088 + 110.849 + 123.68 = $537.6 Mil.
Total Assets at the begining of this year (Jun13) was $2,010.3 Mil.
Total Assets was $2,330.4 Mil.
Long-Term Debt was $1,021.6 Mil.
Total Current Assets was $162.7 Mil.
Total Current Liabilities was $376.1 Mil.
Net Income was 36.969 + 26.182 + 18.49 + -0.93 = $80.7 Mil.

Revenue was 134.224 + 111.901 + 107.45 + 96.197 = $449.8 Mil.
Gross Profit was 114.98 + 95.333 + 93.137 + 83.276 = $386.7 Mil.
Total Assets at the begining of last year (Jun12) was $1,704.6 Mil.
Total Assets was $2,010.3 Mil.
Long-Term Debt was $927.9 Mil.
Total Current Assets was $159.9 Mil.
Total Current Liabilities was $370.3 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.

Carrizo Oil & Gas Inc's current net income was -11.2. ==> Negative ==> Score 0.

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.

Carrizo Oil & Gas Inc's current cash flow from operations was 348.0. ==> 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 (Jun13)
=-11.173/2010.297
=-0.00555789

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=80.711/1704.642
=0.04734777

Carrizo Oil & Gas Inc's return on assets of this year was -0.00555789. Carrizo Oil & Gas Inc's return on assets of last year was 0.04734777. ==> 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.

Carrizo Oil & Gas Inc's current net income was -11.2. Carrizo Oil & Gas Inc's current cash flow from operations was 348.0. ==> 348.0 > -11.2 ==> 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
=1021.606/2330.428
=0.43837698

Gearing (Last Year)=Long-Term Debt/Total Assets
=927.904/2010.297
=0.46157558

Carrizo Oil & Gas Inc's gearing of this year was 0.43837698. Carrizo Oil & Gas Inc's gearing of last year was 0.46157558. ==> 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
=162.712/376.064
=0.43267103

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=159.943/370.303
=0.43192467

Carrizo Oil & Gas Inc's current ratio of this year was 0.43267103. Carrizo Oil & Gas Inc's current ratio of last year was 0.43192467. ==> 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.

Carrizo Oil & Gas Inc's number of shares in issue this year was 46.2. Carrizo Oil & Gas Inc's number of shares in issue last year was 40.6. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=537.626/624.744
=0.86055408

Gross Margin (Last Year)=Gross Profit/Revenue
=386.726/449.772
=0.85982676

Carrizo Oil & Gas Inc's gross margin of this year was 0.86055408. Carrizo Oil & Gas Inc's gross margin of last year was 0.85982676. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun13)
=624.744/2010.297
=0.31077199

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=449.772/1704.642
=0.2638513

Carrizo Oil & Gas Inc's asset turnover of this year was 0.31077199. Carrizo Oil & Gas Inc's asset turnover of last year was 0.2638513. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+0+1+1+1+0+1+1
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Carrizo Oil & Gas 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.

Carrizo Oil & Gas Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111001111
Q2 1111111111
Q3 1010001110
Q4 1111111111
Q5 0011001101
Q6 1100101011
Q7 0000000000
Q8 1101001111
Q9 1001101111
F-score 7556428777

Carrizo Oil & Gas Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111110
Q2 1111111111
Q3 1111101000
Q4 1111111111
Q5 0100111111
Q6 0011100101
Q7 0001000000
Q8 1111111111
Q9 1111111111
F-score 6778867766
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