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DTE Energy Co (NYSE:DTE)
Piotroski F-Score
5 (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

DTE Energy Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

DTE' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 5

4
9

During the past 13 years, the highest Piotroski F-Score of DTE Energy 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 (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was 109 + 265 + 80 + 247 = $701 Mil.
Cash Flow from Operations was 433 + 288 + 443 + 741 = $1,905 Mil.
Revenue was 2268 + 2598 + 2487 + 2566 = $9,919 Mil.
Gross Profit was 1326 + 1545 + 318 + 1225 = $4,414 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(28068 + 28350 + 28654 + 28737 + 28564) / 5 = $28474.6 Mil.
Total Assets at the begining of this year (Mar15) was $28,068 Mil.
Long-Term Debt was $8,758 Mil.
Total Current Assets was $2,362 Mil.
Total Current Liabilities was $2,209 Mil.
Net Income was 124 + 156 + 299 + 273 = $852 Mil.

Revenue was 2698 + 2595 + 3078 + 2984 = $11,355 Mil.
Gross Profit was 1422 + 1476 + 606 + 1286 = $4,790 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(26161 + 26189 + 26376 + 27899 + 28068) / 5 = $26938.6 Mil.
Total Assets at the begining of last year (Mar14) was $26,161 Mil.
Long-Term Debt was $8,838 Mil.
Total Current Assets was $2,788 Mil.
Total Current Liabilities was $1,839 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.

DTE Energy Co's current net income (TTM) was 701. ==> 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.

DTE Energy Co's current cash flow from operations (TTM) was 1,905. ==> 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.

DTE Energy Co's return on assets of this year was 0.02497506. DTE Energy Co's return on assets of last year was 0.03256756. ==> 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.

DTE Energy Co's current net income (TTM) was 701. DTE Energy Co's current cash flow from operations (TTM) was 1,905. ==> 1,905 > 701 ==> 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
=8758/28474.6
=0.30757236

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=8838/26938.6
=0.32807941

DTE Energy Co's gearing of this year was 0.30757236. DTE Energy Co's gearing of last year was 0.32807941. ==> 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: Mar16)=Total Current Assets/Total Current Liabilities
=2362/2209
=1.06926211

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=2788/1839
=1.51604133

DTE Energy Co's current ratio of this year was 1.06926211. DTE Energy Co's current ratio of last year was 1.51604133. ==> 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.

DTE Energy Co's number of shares in issue this year was 180. DTE Energy Co's number of shares in issue last year was 178. ==> 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
=4414/9919
=0.44500454

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4790/11355
=0.4218406

DTE Energy Co's gross margin of this year was 0.44500454. DTE Energy Co's gross margin of last year was 0.4218406. ==> This year's gross margin is higher. ==> Score 1.

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)
=9919/28068
=0.35339176

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=11355/26161
=0.43404304

DTE Energy Co's asset turnover of this year was 0.35339176. DTE Energy Co's asset turnover of last year was 0.43404304. ==> 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+1+0+0+1+0
=5

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

DTE Energy Co has an F-score of 5 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.

DTE Energy Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0100110110
Question 4 1111111111
Question 5 0101111001
Question 6 0010110010
Question 7 0110000000
Question 8 1001101001
Question 9 0110110110
F-score 4765875565

DTE Energy Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 1111111100
Question 4 1111111111
Question 5 0100000011
Question 6 0011111100
Question 7 0000000000
Question 8 0000000011
Question 9 1111110000
F-score 5666665555
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