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DTE Energy Holding Co (NYSE:DTE)
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

DTE Energy Holding Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

DTE' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 6

4
9

During the past 13 years, the highest Piotroski F-Score of DTE Energy Holding Co was 9. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 124 + 326 + 124 + 156 = $730 Mil.
Cash Flow from Operations was 439 + 532 + 544 + 222 = $1,737 Mil.
Revenue was 2533 + 3930 + 2698 + 2595 = $11,756 Mil.
Gross Profit was 1409 + 1775 + 1422 + 1476 = $6,082 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(26231 + 25935 + 26161 + 26189 + 26376) / 5 = $26,178 Mil.
Total Assets as of Sep13 was $26,231 Mil.
Long-Term Debt was $7,909 Mil.
Total Current Assets was $2,755 Mil.
Total Current Liabilities was $2,805 Mil.
Net Income was 81 + 234 + 105 + 198 = $618 Mil.

Revenue was 2311 + 2516 + 2225 + 2387 = $9,439 Mil.
Gross Profit was 1362 + 1492 + 1285 + 1420 = $5,559 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(25909 + 26339 + 25949 + 25944 + 26231) / 5 = $26,074 Mil.
Total Assets as of Sep12 was $25,909 Mil.
Long-Term Debt was $6,846 Mil.
Total Current Assets was $2,549 Mil.
Total Current Liabilities was $3,008 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

DTE Energy Holding Co's current net income (ttm) was 730. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

DTE Energy Holding Co's current cash flow from operations (ttm) was 1,737. ==> 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 (TTM)/Beginning of This Year Total Assets (Sep13)
=730/26231
=0.02782967

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=618/25909
=0.02385272

DTE Energy Holding Co's return on assets of this year was 0.02782967. DTE Energy Holding Co's return on assets of last year was 0.02385272. ==> 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.

DTE Energy Holding Co's current net income (ttm) was 730. DTE Energy Holding Co's current cash flow from operations (ttm) was 1,737. ==> 1,737 > 730 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=7909/26178.4
=0.3021193

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=6846/26074.4
=0.26255638

DTE Energy Holding Co's gearing of this year was 0.3021193. DTE Energy Holding Co's gearing of last year was 0.26255638. ==> Last year is lower than this year ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=2755/2805
=0.98217469

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=2549/3008
=0.84740691

DTE Energy Holding Co's current ratio of this year was 0.98217469. DTE Energy Holding Co's current ratio of last year was 0.84740691. ==> 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.

DTE Energy Holding Co's number of shares in issue this year was 177. DTE Energy Holding Co's number of shares in issue last year was 176. ==> There is larger number of shares in issue this year. ==> Score 0.

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: TTM)=Gross Profit/Revenue
=6082/11756
=0.51735284

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5559/9439
=0.58893951

DTE Energy Holding Co's gross margin of this year was 0.51735284. DTE Energy Holding Co's gross margin of last year was 0.58893951. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by begining of the year total assets) 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)/Beginning of This Year Total Assets (Sep13)
=11756/26231
=0.44817201

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=9439/25909
=0.36431356

DTE Energy Holding Co's asset turnover of this year was 0.44817201. DTE Energy Holding Co's asset turnover of last year was 0.36431356. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

DTE Energy Holding Co 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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

DTE Energy Holding Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0101001101
Q4 1111111111
Q5 1101011110
Q6 1000101100
Q7 0001100000
Q8 1010011010
Q9 0100101101
F-score 6646658755

DTE Energy Holding Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 111111111
Q2 111111111
Q3 000001111
Q4 111111111
Q5 111110100
Q6 000000011
Q7 000000000
Q8 111000000
Q9 000111111
F-score 5555555666
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