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Carlisle Companies Inc (NYSE:CSL)
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Carlisle Companies Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

CSL' 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 Carlisle Companies Inc 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 (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 35.8 + 75.2 + 87.3 + 52.9 = $251 Mil.
Cash Flow from Operations was 51.3 + 19.1 + 94.3 + 131.2 = $296 Mil.
Revenue was 650.4 + 859.5 + 904.1 + 790 = $3,204 Mil.
Gross Profit was 162.1 + 224.6 + 237.1 + 195.7 = $820 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(3493 + 3545.9 + 3656.9 + 3718.4 + 3758.7) / 5 = $3634.58 Mil.
Total Assets at the begining of this year (Dec13) was $3,493 Mil.
Long-Term Debt was $750 Mil.
Total Current Assets was $1,612 Mil.
Total Current Liabilities was $392 Mil.
Net Income was 55.2 + 8.2 + 76.6 + 69.7 = $210 Mil.

Revenue was 629.6 + 792.6 + 796.8 + 724 = $2,943 Mil.
Gross Profit was 152.4 + 207.1 + 200.3 + 185.8 = $746 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(3457.3 + 3458.3 + 3462.4 + 3596.9 + 3493) / 5 = $3493.58 Mil.
Total Assets at the begining of last year (Dec12) was $3,457 Mil.
Long-Term Debt was $751 Mil.
Total Current Assets was $1,535 Mil.
Total Current Liabilities was $376 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.

Carlisle Companies Inc's current net income (TTM) was 251. ==> 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.

Carlisle Companies Inc's current cash flow from operations (TTM) was 296. ==> 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 (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=209.7/3457.3
=0.06065427

Carlisle Companies Inc's return on assets of this year was 0.07191526. Carlisle Companies Inc's return on assets of last year was 0.06065427. ==> 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.

Carlisle Companies Inc's current net income (TTM) was 251. Carlisle Companies Inc's current cash flow from operations (TTM) was 296. ==> 296 > 251 ==> 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: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=749.8/3634.58
=0.20629619

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=751/3493.58
=0.21496574

Carlisle Companies Inc's gearing of this year was 0.20629619. Carlisle Companies Inc's gearing of last year was 0.21496574. ==> 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: Dec14)=Total Current Assets/Total Current Liabilities
=1611.5/392.2
=4.10887302

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=1535/376.4
=4.0781084

Carlisle Companies Inc's current ratio of this year was 4.10887302. Carlisle Companies Inc's current ratio of last year was 4.0781084. ==> 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.

Carlisle Companies Inc's number of shares in issue this year was 65.3. Carlisle Companies Inc's number of shares in issue last year was 65.1. ==> 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
=819.5/3204
=0.25577403

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=745.6/2943
=0.25334692

Carlisle Companies Inc's gross margin of this year was 0.25577403. Carlisle Companies Inc's gross margin of last year was 0.25334692. ==> 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 (Dec13)
=3204/3493
=0.9172631

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=2943/3457.3
=0.8512423

Carlisle Companies Inc's asset turnover of this year was 0.9172631. Carlisle Companies Inc's asset turnover of last year was 0.8512423. ==> This year's asset turnover is higher. ==> Score 1.

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+1+1+0+1+1
=8

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

Carlisle Companies Inc 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


Historical Data

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

Carlisle Companies Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1111111111
Question 2 1111111111
Question 3 1100110101
Question 4 1011101111
Question 5 0111100011
Question 6 1110100111
Question 7 1001000000
Question 8 1100101101
Question 9 1101010001
F-score 8756744658

Carlisle Companies Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Question 1 1111111111
Question 2 1111111111
Question 3 1110000111
Question 4 1111111101
Question 5 1000011111
Question 6 0111111111
Question 7 0100000000
Question 8 1111100001
Question 9 0000001111
F-score 6765556768
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