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GuruFocus has detected 5 Warning Signs with China Yuchai International Ltd $CYD.
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China Yuchai International Ltd (NYSE:CYD)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

China Yuchai International Ltd has an F-score of 5 indicating the company's financial situation is typical for a stable company.

CYD' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 5

2
8

During the past 13 years, the highest Piotroski F-Score of China Yuchai International Ltd 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 local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was 13.7147646362 + 18.7754203849 + 11.5153968397 + 32.664094338 = $77 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Revenue was 519.81007889 + 555.914223274 + 432.638001859 + 539.879620798 = $2,048 Mil.
Gross Profit was 92.9333968967 + 107.815668063 + 94.5620820965 + 147.215237435 = $443 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(2917.55469755 + 0 + 0 + 0 + 2687.43402989) / 5 = $1120.99774549 Mil.
Total Assets at the begining of this year (Dec15) was $2,918 Mil.
Long-Term Debt was $2 Mil.
Total Current Assets was $1,922 Mil.
Total Current Liabilities was $1,160 Mil.
Net Income was 16.8876029878 + 28.4277702572 + 0.0548087191406 + 9.14918360701 = $55 Mil.

Revenue was 589.876254288 + 664.266099401 + 471.932910359 + 453.776651006 = $2,180 Mil.
Gross Profit was 108.105985317 + 134.9141043 + 92.1592122621 + 107.323502504 = $443 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(3033.5352099 + 0 + 0 + 0 + 2917.55469755) / 5 = $1190.21798149 Mil.
Total Assets at the begining of last year (Dec14) was $3,034 Mil.
Long-Term Debt was $9 Mil.
Total Current Assets was $2,034 Mil.
Total Current Liabilities was $1,357 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.

China Yuchai International Ltd's current net income (TTM) was 77. ==> 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.

China Yuchai International Ltd's current cash flow from operations (TTM) was 0. ==> Negative ==> Score 0.

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 (Dec15)
=76.6696761988/2917.55469755
=0.02627875

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=54.5193655712/3033.5352099
=0.01797222

China Yuchai International Ltd's return on assets of this year was 0.02627875. China Yuchai International Ltd's return on assets of last year was 0.01797222. ==> 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.

China Yuchai International Ltd's current net income (TTM) was 77. China Yuchai International Ltd's current cash flow from operations (TTM) was 0. ==> 0 <= 77 ==> CFROA <= ROA ==> Score 0.

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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=2.35122402382/1120.99774549
=0.00209744

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=8.76230791893/1190.21798149
=0.00736194

China Yuchai International Ltd's gearing of this year was 0.00209744. China Yuchai International Ltd's gearing of last year was 0.00736194. ==> 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: Dec16)=Total Current Assets/Total Current Liabilities
=1921.72360473/1159.84190295
=1.6568841

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=2034.1278628/1357.07013382
=1.49891138

China Yuchai International Ltd's current ratio of this year was 1.6568841. China Yuchai International Ltd's current ratio of last year was 1.49891138. ==> 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.

China Yuchai International Ltd's number of shares in issue this year was 40. China Yuchai International Ltd's number of shares in issue last year was 38.7. ==> 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
=442.526384491/2048.24192482
=0.21605181

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=442.502804383/2179.85191505
=0.20299673

China Yuchai International Ltd's gross margin of this year was 0.21605181. China Yuchai International Ltd's gross margin of last year was 0.20299673. ==> 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 (Dec15)
=2048.24192482/2917.55469755
=0.70204063

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=2179.85191505/3033.5352099
=0.71858468

China Yuchai International Ltd's asset turnover of this year was 0.70204063. China Yuchai International Ltd's asset turnover of last year was 0.71858468. ==> 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+0+1+0+1+1+0+1+0
=5

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

China Yuchai International Ltd 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 local exchange's currency.

China Yuchai International Ltd Annual Data

Dec07Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1111111
Question 2 0000000
Question 3 1001001
Question 4 0000000
Question 5 1110011
Question 6 1011101
Question 7 1111000
Question 8 0000011
Question 9 0001000
F-score 5345235

China Yuchai International Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 111
Question 2 000
Question 3 001
Question 4 000
Question 5 011
Question 6 101
Question 7 000
Question 8 011
Question 9 000
F-score 235
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