Switch to:
Denbury Resources Inc (NYSE:DNR)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

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 3. It is a bad or low score, which usually implies poor business operation.

DNR' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 3

2
8

During the past 13 years, the highest Piotroski F-Score of Denbury Resources Inc was 8. 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 (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was -1148.499 + -2244.126 + -885.077 + -185.193 = $-4,463 Mil.
Cash Flow from Operations was 288.957 + 272.676 + 164.907 + 2.029 = $729 Mil.
Revenue was 376.694 + 303.6 + 269.617 + 194.844 = $1,145 Mil.
Gross Profit was 229.364 + 148.616 + 100.543 + 78.596 = $557 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(12468.056 + 10495.303 + 7355.152 + 5919.824 + 5538.547) / 5 = $8355.3764 Mil.
Total Assets at the begining of this year (Mar15) was $12,468 Mil.
Long-Term Debt was $3,222 Mil.
Total Current Assets was $273 Mil.
Total Current Liabilities was $324 Mil.
Net Income was -55.2 + 268.748 + 363.633 + -107.746 = $469 Mil.

Revenue was 672.12 + 637.657 + 483.684 + 307.649 = $2,101 Mil.
Gross Profit was 485.131 + 415.731 + 274.903 + 153.933 = $1,330 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(11867.958 + 11999.677 + 12140.053 + 12727.802 + 12468.056) / 5 = $12240.7092 Mil.
Total Assets at the begining of last year (Mar14) was $11,868 Mil.
Long-Term Debt was $3,596 Mil.
Total Current Assets was $769 Mil.
Total Current Liabilities was $382 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 -4,463. ==> 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 729. ==> 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 (Mar15)
=-4462.895/12468.056
=-0.35794634

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=469.435/11867.958
=0.03955482

Denbury Resources Inc's return on assets of this year was -0.35794634. Denbury Resources Inc's return on assets of last year was 0.03955482. ==> 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 -4,463. Denbury Resources Inc's current cash flow from operations (TTM) was 729. ==> 729 > -4,463 ==> 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: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=3222.497/8355.3764
=0.38567945

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=3596.085/12240.7092
=0.29378077

Denbury Resources Inc's gearing of this year was 0.38567945. Denbury Resources Inc's gearing of last year was 0.29378077. ==> Last year is lower than this year ==> Score 0.

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: Mar16)=Total Current Assets/Total Current Liabilities
=272.975/324.402
=0.84147138

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=768.654/381.674
=2.01390192

Denbury Resources Inc's current ratio of this year was 0.84147138. Denbury Resources Inc's current ratio of last year was 2.01390192. ==> Last year's current ratio is higher ==> Score 0.

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 347.2. Denbury Resources Inc's number of shares in issue last year was 350.7. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=557.119/1144.755
=0.48667095

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1329.698/2101.11
=0.63285501

Denbury Resources Inc's gross margin of this year was 0.48667095. Denbury Resources Inc's gross margin of last year was 0.63285501. ==> 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 (Mar15)
=1144.755/12468.056
=0.09181504

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=2101.11/11867.958
=0.17704057

Denbury Resources Inc's asset turnover of this year was 0.09181504. Denbury Resources Inc's asset turnover of last year was 0.17704057. ==> 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+0+0+1+0+0
=3

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

Denbury Resources Inc has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1110111110
Question 2 1111111111
Question 3 0010100010
Question 4 1111111111
Question 5 1110100100
Question 6 0010101010
Question 7 0001001111
Question 8 0010110010
Question 9 0010100000
F-score 4483845573

Denbury Resources Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111110000
Question 2 1111111111
Question 3 0000110000
Question 4 1111111111
Question 5 1000011000
Question 6 0001111100
Question 7 1111110111
Question 8 0011110000
Question 9 0010000000
F-score 5466784433
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)
FEEDBACK