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ECB Bancorp Inc (AMEX:ECBE)
Piotroski F-Score
0 (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

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

ECBE' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Sep12) TTM:Last Year (Sep11) TTM:
Net Income was -1.612 + 0.377 + 0.588 + 1.649 = $1.00 Mil.
Cash Flow from Operations was 1.177 + 0.714 + 3.452 + 4.505 = $9.85 Mil.
Revenue was 8.797 + 8.267 + 8.879 + 12.329 = $38.27 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0.00 Mil.
Average Total Assets from the begining of this year (Sep11)
to the end of this year (Sep12) was
(923.695 + 921.277 + 916.274 + 944.266 + 927.592) / 5 = $926.6208 Mil.
Total Assets at the begining of this year (Sep11) was $923.70 Mil.
Long-Term Debt was $16.00 Mil.
Total Current Assets was $0.00 Mil.
Total Current Liabilities was $0.00 Mil.
Net Income was -1.124 + -1.084 + 1.145 + 0.527 = $-0.54 Mil.

Revenue was 10.575 + 8.199 + 9.584 + 9.191 = $37.55 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0.00 Mil.
Average Total Assets from the begining of last year (Sep10)
to the end of last year (Sep11) was
(932.209 + 919.869 + 916.571 + 941.463 + 923.695) / 5 = $926.7614 Mil.
Total Assets at the begining of last year (Sep10) was $932.21 Mil.
Long-Term Debt was $25.50 Mil.
Total Current Assets was $0.00 Mil.
Total Current Liabilities was $0.00 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.

ECB Bancorp Inc's current net income (TTM) was 1.00. ==> 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.

ECB Bancorp Inc's current cash flow from operations (TTM) was 9.85. ==> 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)/Total Assets at the Beginning of This Year (Sep11)
=1.002/923.695
=0.00108477

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep10)
=-0.536/932.209
=-0.00057498

ECB Bancorp Inc's return on assets of this year was 0.00108477. ECB Bancorp Inc's return on assets of last year was -0.00057498. ==> 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.

ECB Bancorp Inc's current net income (TTM) was 1.00. ECB Bancorp Inc's current cash flow from operations (TTM) was 9.85. ==> 9.85 > 1.00 ==> 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: Sep12)=Long-Term Debt/Average Total Assets from Sep11 to Sep12
=16/926.6208
=0.01726704

Gearing (Last Year: Sep11)=Long-Term Debt/Average Total Assets from Sep10 to Sep11
=25.5/926.7614
=0.02751517

ECB Bancorp Inc's gearing of this year was 0.01726704. ECB Bancorp Inc's gearing of last year was 0.02751517. ==> This year is lower or equal to last year. ==> Score 1.

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: Sep12)=Total Current Assets/Total Current Liabilities
=0/0
=

Current Ratio (Last Year: Sep11)=Total Current Assets/Total Current Liabilities
=0/0
=

ECB Bancorp Inc's current ratio of this year was . ECB Bancorp Inc's current ratio of last year was . ==> Last year's current ratio is higher ==> Score 0.

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.

ECB Bancorp Inc's number of shares in issue this year was 2.9. ECB Bancorp Inc's number of shares in issue last year was 2.9. ==> There is smaller number of shares in issue this year, or the same. ==> 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: TTM)=Gross Profit/Revenue
=0/38.272
=0

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=0/37.549
=0

ECB Bancorp Inc's gross margin of this year was 0. ECB Bancorp Inc's gross margin of last year was 0. ==> 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 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 (Sep11)
=38.272/923.695
=0.04143359

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep10)
=37.549/932.209
=0.04027959

ECB Bancorp Inc's asset turnover of this year was 0.04143359. ECB Bancorp Inc's asset turnover of last year was 0.04027959. ==> 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+1+0+1+0+1
=7

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

ECB Bancorp 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.

ECB Bancorp Inc Annual Data

Dec02Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11
Q1 1111111110
Q2 1111111111
Q3 1001100000
Q4 0011111111
Q5 0111110101
Q6 0000000000
Q7 1110001101
Q8 0000000000
Q9 1001000010
F-score 5456544544

ECB Bancorp Inc Quarterly Data

Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12
Q1 1110000101
Q2 1111111111
Q3 0000000111
Q4 1111111111
Q5 1000011111
Q6 0000000000
Q7 0000111110
Q8 0000000000
Q9 1110000001
F-score 6552233536
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