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Dover Corp (NYSE:DOV)
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

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

DOV' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 8
Current: 4

4
8

During the past 13 years, the highest Piotroski F-Score of Dover Corp was 8. The lowest was 4. 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 332.396 + 186.098 + 141.825 + 99.356 = $760 Mil.
Cash Flow from Operations was 208.858 + 200.577 + 408.292 + 133.413 = $951 Mil.
Revenue was 1758.628 + 1787.582 + 1694.6 + 1622.273 = $6,863 Mil.
Gross Profit was 654.568 + 672.608 + 613.809 + 589.264 = $2,530 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(8646.705 + 8466.817 + 8478.82 + 8619.763 + 8980.895) / 5 = $8638.6 Mil.
Total Assets at the begining of this year (Mar15) was $8,647 Mil.
Long-Term Debt was $2,611 Mil.
Total Current Assets was $2,346 Mil.
Total Current Liabilities was $1,649 Mil.
Net Income was 213.959 + 231.844 + 169.294 + 209.51 = $825 Mil.

Revenue was 1962.636 + 2009.575 + 1977.947 + 1715.501 = $7,666 Mil.
Gross Profit was 768.099 + 774.422 + 723.868 + 627.159 = $2,894 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(8664.39 + 8795.074 + 8959.186 + 9030.291 + 8646.705) / 5 = $8819.1292 Mil.
Total Assets at the begining of last year (Mar14) was $8,664 Mil.
Long-Term Debt was $2,218 Mil.
Total Current Assets was $2,672 Mil.
Total Current Liabilities was $1,782 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.

Dover Corp's current net income (TTM) was 760. ==> 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.

Dover Corp's current cash flow from operations (TTM) was 951. ==> 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)
=759.675/8646.705
=0.08785717

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=824.607/8664.39
=0.09517196

Dover Corp's return on assets of this year was 0.08785717. Dover Corp's return on assets of last year was 0.09517196. ==> 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.

Dover Corp's current net income (TTM) was 760. Dover Corp's current cash flow from operations (TTM) was 951. ==> 951 > 760 ==> 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
=2610.642/8638.6
=0.30220661

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=2217.874/8819.1292
=0.25148447

Dover Corp's gearing of this year was 0.30220661. Dover Corp's gearing of last year was 0.25148447. ==> 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
=2345.756/1648.809
=1.42269723

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=2671.551/1782.054
=1.49914144

Dover Corp's current ratio of this year was 1.42269723. Dover Corp's current ratio of last year was 1.49914144. ==> 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.

Dover Corp's number of shares in issue this year was 156.2. Dover Corp's number of shares in issue last year was 163.3. ==> 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
=2530.249/6863.083
=0.36867527

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2893.548/7665.659
=0.37746892

Dover Corp's gross margin of this year was 0.36867527. Dover Corp's gross margin of last year was 0.37746892. ==> 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)
=6863.083/8646.705
=0.79372235

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=7665.659/8664.39
=0.88473153

Dover Corp's asset turnover of this year was 0.79372235. Dover Corp's asset turnover of last year was 0.88473153. ==> 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+1+0+1+0+0+1+0+0
=4

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

Dover Corp 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.

Dover Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0100110101
Question 4 1111111011
Question 5 1100101010
Question 6 1011110101
Question 7 0111011111
Question 8 1101101000
Question 9 1000110011
F-score 7756876567

Dover Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 1100011110
Question 4 0011111111
Question 5 0000111100
Question 6 1111000010
Question 7 1111111111
Question 8 0000000000
Question 9 0111111110
F-score 5666677774
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