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Dover Corporation (NYSE:DOV)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Dover Corporation has an F-score of 6 indicating the company's financial situation is typical for a stable company.

DOV' s 10-Year Piotroski F-Score Range
Min: 5   Max: 8
Current: 6

5
8

During the past 13 years, the highest Piotroski F-Score of Dover Corporation was 8. The lowest was 5. 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 193.963 + 269.114 + 330.049 + 210.003 = $1,003 Mil.
Cash Flow from Operations was 422.961 + 349.016 + 305.675 + 76.865 = $1,155 Mil.
Revenue was 2209.128 + 2252.349 + 2228.763 + 2039.573 = $8,730 Mil.
Gross Profit was 830.557 + 876.65 + 855.952 + 776.622 = $3,340 Mil.
Total Assets at the begining of this year (Dec12) was $10,444 Mil.
Total Assets was $10,838 Mil.
Long-Term Debt was $2,599 Mil.
Total Current Assets was $3,240 Mil.
Total Current Liabilities was $1,616 Mil.
Net Income was 159.86 + 241.046 + 214.101 + 196.063 = $811 Mil.

Revenue was 2013.831 + 2097.605 + 2038.289 + 1954.614 = $8,104 Mil.
Gross Profit was 773.744 + 810.139 + 777.102 + 746.08 = $3,107 Mil.
Total Assets at the begining of last year (Dec11) was $9,501 Mil.
Total Assets was $10,444 Mil.
Long-Term Debt was $2,189 Mil.
Total Current Assets was $3,028 Mil.
Total Current Liabilities was $1,987 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.

Dover Corporation's current net income was 1,003. ==> 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.

Dover Corporation's current cash flow from operations was 1,155. ==> 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 (Dec12)
=1003.129/10443.943
=0.09604888

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=811.07/9500.552
=0.08537083

Dover Corporation's return on assets of this year was 0.09604888. Dover Corporation's return on assets of last year was 0.08537083. ==> This year is higher. ==> Score 1.

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.

Dover Corporation's current net income was 1,003. Dover Corporation's current cash flow from operations was 1,155. ==> 1,155 > 1,003 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=2599.201/10838.172
=0.23981913

Gearing (Last Year)=Long-Term Debt/Total Assets
=2189.35/10443.943
=0.20962868

Dover Corporation's gearing of this year was 0.23981913. Dover Corporation's gearing of last year was 0.20962868. ==> Last year is lower ==> Score 0.

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
=3240.162/1615.58
=2.00557199

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=3027.844/1986.628
=1.52411221

Dover Corporation's current ratio of this year was 2.00557199. Dover Corporation's current ratio of last year was 1.52411221. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Dover Corporation's number of shares in issue this year was 172.6. Dover Corporation's number of shares in issue last year was 179.5. ==> There is the same number of shares in issue this year, or fewer. ==> 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
=3339.781/8729.813
=0.38257188

Gross Margin (Last Year)=Gross Profit/Revenue
=3107.065/8104.339
=0.3833829

Dover Corporation's gross margin of this year was 0.38257188. Dover Corporation's gross margin of last year was 0.3833829. ==> 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 (Dec12)
=8729.813/10443.943
=0.83587329

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=8104.339/9500.552
=0.85303875

Dover Corporation's asset turnover of this year was 0.83587329. Dover Corporation's asset turnover of last year was 0.85303875. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+0+1+1+0+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Dover Corporation has an F-score of 6 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 Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1101001101
Q4 1111111111
Q5 1011011010
Q6 0010111101
Q7 0101110111
Q8 1010011000
Q9 0110001100
F-score 6676578756

Dover Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1100100111
Q4 1111111111
Q5 0011111110
Q6 0100100001
Q7 1111111111
Q8 1000000110
Q9 0100001110
F-score 6755756886
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