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DeVry Education Group Inc (NYSE:DV)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

DeVry Education Group Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

DV' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 7

4
9

During the past 13 years, the highest Piotroski F-Score of DeVry Education Group Inc 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 (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 55.525 + 37.484 + 20.44 + 42.413 = $156 Mil.
Cash Flow from Operations was 150.088 + 2.352 + 141.063 + -48.754 = $245 Mil.
Revenue was 496.117 + 485.073 + 462.044 + 484.88 = $1,928 Mil.
Gross Profit was 253.486 + 229 + 215.713 + 234.071 = $932 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(1889.113 + 2048.865 + 1997.636 + 2134.627 + 1967.866) / 5 = $2007.6214 Mil.
Total Assets at the begining of this year (Dec13) was $1,889 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $573 Mil.
Total Current Liabilities was $265 Mil.
Net Income was 56.821 + -32.31 + -7.132 + 48.155 = $66 Mil.

Revenue was 503.825 + 479.964 + 450.913 + 491.269 = $1,926 Mil.
Gross Profit was 266.997 + 234.266 + 209.176 + 248.272 = $959 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(1914.066 + 2018.834 + 1857.018 + 2026.807 + 1889.113) / 5 = $1941.1676 Mil.
Total Assets at the begining of last year (Dec12) was $1,914 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $476 Mil.
Total Current Liabilities was $307 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.

DeVry Education Group Inc's current net income (TTM) was 156. ==> 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.

DeVry Education Group Inc's current cash flow from operations (TTM) was 245. ==> 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 (Dec13)
=155.862/1889.113
=0.08250539

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=65.534/1914.066
=0.03423811

DeVry Education Group Inc's return on assets of this year was 0.08250539. DeVry Education Group Inc's return on assets of last year was 0.03423811. ==> This year is higher. ==> Score 1.

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.

DeVry Education Group Inc's current net income (TTM) was 156. DeVry Education Group Inc's current cash flow from operations (TTM) was 245. ==> 245 > 156 ==> 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: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=0/2007.6214
=0

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=0/1941.1676
=0

DeVry Education Group Inc's gearing of this year was 0. DeVry Education Group Inc's gearing of last year was 0. ==> 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: Dec14)=Total Current Assets/Total Current Liabilities
=572.779/264.98
=2.16159333

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=475.745/307.152
=1.5488911

DeVry Education Group Inc's current ratio of this year was 2.16159333. DeVry Education Group Inc's current ratio of last year was 1.5488911. ==> This year's current ratio is higher. ==> Score 1.

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.

DeVry Education Group Inc's number of shares in issue this year was 65.5. DeVry Education Group Inc's number of shares in issue last year was 64.7. ==> 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
=932.27/1928.114
=0.48351394

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=958.711/1925.971
=0.4977806

DeVry Education Group Inc's gross margin of this year was 0.48351394. DeVry Education Group Inc's gross margin of last year was 0.4977806. ==> 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 (Dec13)
=1928.114/1889.113
=1.02064514

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=1925.971/1914.066
=1.00621974

DeVry Education Group Inc's asset turnover of this year was 1.02064514. DeVry Education Group Inc's asset turnover of last year was 1.00621974. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+0+1
=7

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

DeVry Education Group Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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.

DeVry Education Group Inc Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Question 1 1111111111
Question 2 1111111111
Question 3 0111111001
Question 4 1111111111
Question 5 1111011111
Question 6 0011011011
Question 7 1000101110
Question 8 0111111000
Question 9 0111100000
F-score 5788778566

DeVry Education Group Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Question 1 1111111111
Question 2 1111111111
Question 3 0000000111
Question 4 1111111111
Question 5 1111111111
Question 6 0111111111
Question 7 1111100000
Question 8 0000000000
Question 9 0000001001
F-score 5666656667
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