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Cenveo Inc (NYSE:CVO)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

Cenveo Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

CVO' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 5

2
8

During the past 13 years, the highest Piotroski F-Score of Cenveo Inc was 8. The lowest was 2. And the median was 5.


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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was -54.741 + 23.983 + -18.883 + -19.145 = $-69 Mil.
Cash Flow from Operations was 10.44 + 8.407 + 6.028 + 3.318 = $28 Mil.
Revenue was 509.873 + 442.781 + 415.702 + 432.344 = $1,801 Mil.
Gross Profit was 80.334 + 75.425 + 72.091 + 69.909 = $298 Mil.
Total Assets at the begining of this year (Dec12) was $1,201 Mil.
Total Assets was $1,214 Mil.
Long-Term Debt was $1,176 Mil.
Total Current Assets was $510 Mil.
Total Current Liabilities was $369 Mil.
Net Income was -56.743 + 4.475 + -0.401 + -27.218 = $-80 Mil.

Revenue was 437.7 + 437.168 + 433.218 + 455.583 = $1,764 Mil.
Gross Profit was 83.672 + 83.388 + 80.418 + 80.58 = $328 Mil.
Total Assets at the begining of last year (Dec11) was $1,386 Mil.
Total Assets was $1,201 Mil.
Long-Term Debt was $1,172 Mil.
Total Current Assets was $469 Mil.
Total Current Liabilities was $300 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.

Cenveo Inc's current net income was -69. ==> 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.

Cenveo Inc's current cash flow from operations was 28. ==> 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 (Dec12)
=-68.786/1200.555
=-0.05729517

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=-79.887/1385.588
=-0.05765567

Cenveo Inc's return on assets of this year was -0.05729517. Cenveo Inc's return on assets of last year was -0.05765567. ==> 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.

Cenveo Inc's current net income was -69. Cenveo Inc's current cash flow from operations was 28. ==> 28 > -69 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=1176.351/1213.704
=0.96922396

Gearing (Last Year)=Long-Term Debt/Total Assets
=1171.87/1200.555
=0.97610688

Cenveo Inc's gearing of this year was 0.96922396. Cenveo Inc's gearing of last year was 0.97610688. ==> This year is lower. ==> 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
=509.965/368.752
=1.38294843

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=468.963/300.234
=1.56199165

Cenveo Inc's current ratio of this year was 1.38294843. Cenveo Inc's current ratio of last year was 1.56199165. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Cenveo Inc's number of shares in issue this year was 66.2. Cenveo Inc's number of shares in issue last year was 63.8. ==> There is more 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
=297.759/1800.7
=0.16535736

Gross Margin (Last Year)=Gross Profit/Revenue
=328.058/1763.669
=0.18600883

Cenveo Inc's gross margin of this year was 0.16535736. Cenveo Inc's gross margin of last year was 0.18600883. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec12)
=1800.7/1200.555
=1.49988963

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=1763.669/1385.588
=1.27286683

Cenveo Inc's asset turnover of this year was 1.49988963. Cenveo Inc's asset turnover of last year was 1.27286683. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+1+1+1+0+0+0+1
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Cenveo Inc has an F-score of 5 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.

Cenveo Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0011000000
Q2 1011111111
Q3 0010010101
Q4 1101111111
Q5 1010010101
Q6 0111001000
Q7 1000100000
Q8 0011001100
Q9 0011011101
F-score 4276355625

Cenveo Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 0000000000
Q2 1111111111
Q3 1111000001
Q4 1111111111
Q5 1100000001
Q6 0010000000
Q7 0000000000
Q8 0111100000
Q9 1111101111
F-score 5665423335
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