Switch to:
Cyberonics Inc (NAS:CYBX)
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

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

CYBX' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 7

2
9

During the past 13 years, the highest Piotroski F-Score of Cyberonics Inc was 9. The lowest was 2. And the median was 4.


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 (Oct14) TTM:Last Year (Oct13) TTM:
Net Income was 13.9 + 18.428 + 13.519 + 17.273 = $63.1 Mil.
Cash Flow from Operations was 15.631 + 16.448 + 18.098 + 24.531 = $74.7 Mil.
Revenue was 68.191 + 74.849 + 72.004 + 73.417 = $288.5 Mil.
Gross Profit was 61.731 + 67.425 + 65.594 + 66.651 = $261.4 Mil.
Average Total Assets from the begining of this year (Oct13)
to the end of this year (Oct14) was
(265.683 + 269.182 + 294.191 + 289.923 + 296.748) / 5 = $283.1454 Mil.
Total Assets at the begining of this year (Oct13) was $265.7 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $221.8 Mil.
Total Current Liabilities was $25.2 Mil.
Net Income was 13.183 + 11.532 + 8.674 + 13.888 = $47.3 Mil.

Revenue was 62.7 + 68.344 + 68.872 + 70.101 = $270.0 Mil.
Gross Profit was 57.333 + 61.985 + 62.328 + 63.175 = $244.8 Mil.
Average Total Assets from the begining of last year (Oct12)
to the end of last year (Oct13) was
(233.529 + 250.41 + 264.043 + 265.799 + 265.683) / 5 = $255.8928 Mil.
Total Assets at the begining of last year (Oct12) was $233.5 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $198.8 Mil.
Total Current Liabilities was $25.1 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.

Cyberonics Inc's current net income (TTM) was 63.1. ==> Positive ==> Score 1.

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.

Cyberonics Inc's current cash flow from operations (TTM) was 74.7. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Oct13)
=63.12/265.683
=0.23757636

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=47.277/233.529
=0.20244595

Cyberonics Inc's return on assets of this year was 0.23757636. Cyberonics Inc's return on assets of last year was 0.20244595. ==> 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.

Cyberonics Inc's current net income (TTM) was 63.1. Cyberonics Inc's current cash flow from operations (TTM) was 74.7. ==> 74.7 > 63.1 ==> 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: Oct14)=Long-Term Debt/Average Total Assets from Oct13 to Oct14
=0/283.1454
=0

Gearing (Last Year: Oct13)=Long-Term Debt/Average Total Assets from Oct12 to Oct13
=0/255.8928
=0

Cyberonics Inc's gearing of this year was 0. Cyberonics Inc's gearing of last year was 0. ==> 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: Oct14)=Total Current Assets/Total Current Liabilities
=221.774/25.249
=8.78347657

Current Ratio (Last Year: Oct13)=Total Current Assets/Total Current Liabilities
=198.773/25.087
=7.92334675

Cyberonics Inc's current ratio of this year was 8.78347657. Cyberonics Inc's current ratio of last year was 7.92334675. ==> 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.

Cyberonics Inc's number of shares in issue this year was 26.8. Cyberonics Inc's number of shares in issue last year was 27.6. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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: TTM)=Gross Profit/Revenue
=261.401/288.461
=0.90619182

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=244.821/270.017
=0.90668736

Cyberonics Inc's gross margin of this year was 0.90619182. Cyberonics Inc's gross margin of last year was 0.90668736. ==> Last year's gross margin is higher ==> Score 0.

Q9. 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 (Oct13)
=288.461/265.683
=1.08573375

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=270.017/233.529
=1.15624612

Cyberonics Inc's asset turnover of this year was 1.08573375. Cyberonics Inc's asset turnover of last year was 1.15624612. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+1+0+0
=7

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

Cyberonics Inc 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.

Cyberonics Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
Q1 0000111111
Q2 0001111111
Q3 0011110010
Q4 1011001110
Q5 1110111111
Q6 1001001111
Q7 1000001111
Q8 0100111110
Q9 0101110010
F-score 4335667795

Cyberonics Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Q1 1111111111
Q2 1111111111
Q3 0111100011
Q4 1111111011
Q5 1111111111
Q6 1111010111
Q7 1101111111
Q8 1111000000
Q9 0111100000
F-score 7989765577
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)
Free 7-day Trial
FEEDBACK