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Dillards Inc (NYSE:DDS)
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 = 8 or 9
Bad or low score = 0 or 1

Dillards Inc has an F-score of 7 indicating the company's financial situation is typical for a stable company.

DDS' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 7

3
9

During the past 13 years, the highest Piotroski F-Score of Dillards Inc was 9. The lowest was 3. And the median was 7.


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 (Apr14) TTM:Last Year (Apr13) TTM:
Net Income was 111.7 + 119.1 + 50.868 + 36.491 = $318 Mil.
Cash Flow from Operations was 161.9 + 328.7 + 41.282 + -5.158 = $527 Mil.
Revenue was 1588.5 + 2078.7 + 1506.925 + 1516.796 = $6,691 Mil.
Gross Profit was 649.3 + 707 + 569.518 + 539.974 = $2,466 Mil.
Total Assets at the begining of this year (Apr13) was $4,261 Mil.
Total Assets was $4,294 Mil.
Long-Term Debt was $821 Mil.
Total Current Assets was $1,943 Mil.
Total Current Liabilities was $991 Mil.
Net Income was 117.21 + 161.443 + 48.514 + 31.022 = $358 Mil.

Revenue was 1589.381 + 2154.056 + 1486.345 + 1525.182 = $6,755 Mil.
Gross Profit was 651.596 + 771.286 + 566.722 + 537.38 = $2,527 Mil.
Total Assets at the begining of last year (Apr12) was $4,516 Mil.
Total Assets was $4,261 Mil.
Long-Term Debt was $822 Mil.
Total Current Assets was $1,775 Mil.
Total Current Liabilities was $990 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.

Dillards Inc's current net income was 318. ==> 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.

Dillards Inc's current cash flow from operations was 527. ==> 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 (Apr13)
=318.159/4261.16
=0.07466488

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Apr12)
=358.189/4516.034
=0.07931495

Dillards Inc's return on assets of this year was 0.07466488. Dillards Inc's return on assets of last year was 0.07931495. ==> 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.

Dillards Inc's current net income was 318. Dillards Inc's current cash flow from operations was 527. ==> 527 > 318 ==> 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
=821.3/4293.6
=0.1912847

Gearing (Last Year)=Long-Term Debt/Total Assets
=822.125/4261.16
=0.19293455

Dillards Inc's gearing of this year was 0.1912847. Dillards Inc's gearing of last year was 0.19293455. ==> 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
=1942.7/991
=1.96034309

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1775.313/989.713
=1.79376547

Dillards Inc's current ratio of this year was 1.96034309. Dillards Inc's current ratio of last year was 1.79376547. ==> 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.

Dillards Inc's number of shares in issue this year was 43.7. Dillards Inc's number of shares in issue last year was 46.9. ==> 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)=Gross Profit/Revenue
=2465.792/6690.921
=0.36852804

Gross Margin (Last Year)=Gross Profit/Revenue
=2526.984/6754.964
=0.37409289

Dillards Inc's gross margin of this year was 0.36852804. Dillards Inc's gross margin of last year was 0.37409289. ==> 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 (Apr13)
=6690.921/4261.16
=1.57021116

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Apr12)
=6754.964/4516.034
=1.4957735

Dillards Inc's asset turnover of this year was 1.57021116. Dillards Inc's asset turnover of last year was 1.4957735. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Dillards Inc has an F-score of 7 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.

Dillards Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Q1 1111011111
Q2 1111111111
Q3 1110011101
Q4 1111111111
Q5 1111001101
Q6 0010110011
Q7 1111111111
Q8 1010011110
Q9 1110011111
F-score 8795488878

Dillards Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
Q1 1111111111
Q2 1111111111
Q3 1100001100
Q4 1111111111
Q5 1100000110
Q6 1011110111
Q7 1111111111
Q8 0111111000
Q9 1111111111
F-score 8877777870
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