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Denbury Resources Inc (NYSE:DNR)
Piotroski F-Score
4 (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

Denbury Resources Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

DNR' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 4

2
9

During the past 13 years, the highest Piotroski F-Score of Denbury Resources Inc was 9. The lowest was 2. 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 (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was 268.748 + 363.633 + -107.746 + -1148.499 = $-624 Mil.
Cash Flow from Operations was 340.392 + 337.728 + 137.764 + 288.957 = $1,105 Mil.
Revenue was 637.657 + 483.684 + 307.649 + 376.694 = $1,806 Mil.
Gross Profit was 415.731 + 274.903 + 127.254 + 229.364 = $1,047 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(11999.677 + 12140.053 + 12727.802 + 12468.056 + 10495.303) / 5 = $11966.1782 Mil.
Total Assets at the begining of this year (Jun14) was $12,000 Mil.
Long-Term Debt was $3,471 Mil.
Total Current Assets was $558 Mil.
Total Current Liabilities was $383 Mil.
Net Income was 102.054 + 89.992 + 58.31 + -55.2 = $195 Mil.

Revenue was 684.835 + 599.122 + 641.744 + 672.12 = $2,598 Mil.
Gross Profit was 437.35 + 347.96 + 403.429 + 485.131 = $1,674 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(11508.51 + 11609.645 + 11788.737 + 11867.958 + 11999.677) / 5 = $11754.9054 Mil.
Total Assets at the begining of last year (Jun13) was $11,509 Mil.
Long-Term Debt was $3,602 Mil.
Total Current Assets was $423 Mil.
Total Current Liabilities was $736 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.

Denbury Resources Inc's current net income (TTM) was -624. ==> Negative ==> Score 0.

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.

Denbury Resources Inc's current cash flow from operations (TTM) was 1,105. ==> 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 (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Jun14)
=-623.864/11999.677
=-0.05199007

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=195.156/11508.51
=0.01695754

Denbury Resources Inc's return on assets of this year was -0.05199007. Denbury Resources Inc's return on assets of last year was 0.01695754. ==> Last year is higher ==> Score 0.

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.

Denbury Resources Inc's current net income (TTM) was -624. Denbury Resources Inc's current cash flow from operations (TTM) was 1,105. ==> 1,105 > -624 ==> 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: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=3471.141/11966.1782
=0.29007933

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=3602.156/11754.9054
=0.30643854

Denbury Resources Inc's gearing of this year was 0.29007933. Denbury Resources Inc's gearing of last year was 0.30643854. ==> 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: Jun15)=Total Current Assets/Total Current Liabilities
=558.382/382.641
=1.45928429

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=422.973/736.028
=0.57466971

Denbury Resources Inc's current ratio of this year was 1.45928429. Denbury Resources Inc's current ratio of last year was 0.57466971. ==> 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.

Denbury Resources Inc's number of shares in issue this year was 350. Denbury Resources Inc's number of shares in issue last year was 347.8. ==> 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
=1047.252/1805.684
=0.57997523

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1673.87/2597.821
=0.64433616

Denbury Resources Inc's gross margin of this year was 0.57997523. Denbury Resources Inc's gross margin of last year was 0.64433616. ==> Last year's gross margin is higher ==> Score 0.

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 (Jun14)
=1805.684/11999.677
=0.15047772

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=2597.821/11508.51
=0.22573044

Denbury Resources Inc's asset turnover of this year was 0.15047772. Denbury Resources Inc's asset turnover of last year was 0.22573044. ==> 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
=0+1+0+1+1+1+0+0+0
=4

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

Denbury Resources Inc has an F-score of 4 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.

Denbury Resources Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1111011111
Question 2 1111111111
Question 3 1001010001
Question 4 1111111111
Question 5 0111010010
Question 6 0001010101
Question 7 0001101111
Question 8 1001011101
Question 9 1001010000
F-score 6449385657

Denbury Resources Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 1111111110
Question 2 1111111111
Question 3 0000000110
Question 4 1111111111
Question 5 0111000011
Question 6 0000001111
Question 7 1111111110
Question 8 1000000110
Question 9 0000010000
F-score 5555455784
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