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Exceed Co Ltd (NAS:EDS)
Piotroski F-Score
4 (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

Exceed Co Ltd has an F-score of 4 indicating the company's financial situation is typical for a stable company.

EDS' s 10-Year Piotroski F-Score Range
Min: 2   Max: 7
Current: 4

2
7

During the past 8 years, the highest Piotroski F-Score of Exceed Co Ltd was 7. The lowest was 2. And the median was 4.


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 (Jun14) TTM:Last Year (Mar13) TTM:
Net Income was 2.54499510923 + 2.99967320261 + 3.57013500165 + 0 = $9.1 Mil.
Cash Flow from Operations was -7.08069775024 + -27.0379084967 + -14.1791241357 + 71.7953327127 = $23.5 Mil.
Revenue was 57.1938376263 + 78.7254901961 + 81.6379650971 + 0 = $217.6 Mil.
Gross Profit was 15.6343332246 + 21.3977124183 + 22.2737899243 + 0 = $59.3 Mil.
Average Total Assets from the begining of this year (Mar13)
to the end of this year (Jun14) was
(371.011584875 + 388.070101076 + 396.729738562 + 397.301119526 + 405.06371778) / 5 = $391.635252364 Mil.
Total Assets at the begining of this year (Mar13) was $371.0 Mil.
Long-Term Debt was $0.7 Mil.
Total Current Assets was $273.9 Mil.
Total Current Liabilities was $35.2 Mil.
Net Income was 4.71004243281 + 4.80284810127 + 1.70608053907 + 1.59098954143 = $12.8 Mil.

Revenue was 88.3179317932 + 87.5401898734 + 59.9611743944 + 48.4505229284 = $284.3 Mil.
Gross Profit was 25.4623605218 + 24.0419303797 + 16.3544039788 + 12.6810941271 = $78.5 Mil.
Average Total Assets from the begining of last year (Mar12)
to the end of last year (Mar13) was
(380.759226992 + 358.780135156 + 362.376898734 + 363.51243382 + 371.011584875) / 5 = $367.288055916 Mil.
Total Assets at the begining of last year (Mar12) was $380.8 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $289.4 Mil.
Total Current Liabilities was $21.3 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.

Exceed Co Ltd's current net income (TTM) was 9.1. ==> 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.

Exceed Co Ltd's current cash flow from operations (TTM) was 23.5. ==> 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 (Mar13)
=9.11480331349/371.011584875
=0.02456744

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar12)
=12.8099606146/380.759226992
=0.0336432

Exceed Co Ltd's return on assets of this year was 0.02456744. Exceed Co Ltd's return on assets of last year was 0.0336432. ==> Last year is higher ==> Score 0.

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.

Exceed Co Ltd's current net income (TTM) was 9.1. Exceed Co Ltd's current cash flow from operations (TTM) was 23.5. ==> 23.5 > 9.1 ==> 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: Jun14)=Long-Term Debt/Average Total Assets from Mar13 to Jun14
=0.669598433538/391.635252364
=0.00170975

Gearing (Last Year: Mar13)=Long-Term Debt/Average Total Assets from Mar12 to Mar13
=0/367.288055916
=0

Exceed Co Ltd's gearing of this year was 0.00170975. Exceed Co Ltd's gearing of last year was 0. ==> 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: Jun14)=Total Current Assets/Total Current Liabilities
=273.913908773/35.1821654415
=7.78558981

Current Ratio (Last Year: Mar13)=Total Current Assets/Total Current Liabilities
=289.419308126/21.3201930813
=13.57489151

Exceed Co Ltd's current ratio of this year was 7.78558981. Exceed Co Ltd's current ratio of last year was 13.57489151. ==> 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.

Exceed Co Ltd's number of shares in issue this year was 0. Exceed Co Ltd's number of shares in issue last year was 33. ==> 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
=59.3058355672/217.55729292
=0.2725987

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=78.5397890074/284.269818989
=0.27628606

Exceed Co Ltd's gross margin of this year was 0.2725987. Exceed Co Ltd's gross margin of last year was 0.27628606. ==> 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 (Mar13)
=217.55729292/371.011584875
=0.58638949

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar12)
=284.269818989/380.759226992
=0.74658682

Exceed Co Ltd's asset turnover of this year was 0.58638949. Exceed Co Ltd's asset turnover of last year was 0.74658682. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+0+1+0+0
=4

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

Exceed Co Ltd has an F-score of 4 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.

Exceed Co Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111
Q2 1101
Q3 0100
Q4 1000
Q5 1110
Q6 1110
Q7 0010
Q8 1000
Q9 0100
F-score 6642

Exceed Co Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Jun14
Q1 111111111
Q2 110011111
Q3 100000000
Q4 000001101
Q5 111111100
Q6 111111000
Q7 100100001
Q8 000000000
Q9 100000000
F-score 7443445424
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