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Enterprise Products Partners LP (NYSE:EPD)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Enterprise Products Partners LP has an F-score of 5 indicating the company's financial situation is typical for a stable company.

EPD' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 5

3
8

During the past 13 years, the highest Piotroski F-Score of Enterprise Products Partners LP was 8. The lowest was 3. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 592 + 698.9 + 798.8 + 637.7 = $2,727 Mil.
Cash Flow from Operations was 835.3 + 1499.3 + 1404.1 + 467.8 = $4,207 Mil.
Revenue was 12093.3 + 13101.3 + 12909.9 + 12520.8 = $50,625 Mil.
Gross Profit was 819.8 + 923.7 + 1029.4 + 881.7 = $3,655 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(37876.9 + 40125 + 40138.7 + 40990.5 + 41571.3) / 5 = $40,140 Mil.
Total Assets was $41,571 Mil.
Long-Term Debt was $17,063 Mil.
Total Current Assets was $7,472 Mil.
Total Current Liabilities was $8,470 Mil.
Net Income was 586.8 + 615.5 + 753.5 + 552.5 = $2,508 Mil.

Revenue was 10468.7 + 11072.1 + 11383.1 + 11149.3 = $44,073 Mil.
Gross Profit was 808.9 + 840.7 + 962.7 + 782.1 = $3,394 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(33667.1 + 35277.8 + 35934.4 + 38101.4 + 37876.9) / 5 = $36,172 Mil.
Total Assets was $37,877 Mil.
Long-Term Debt was $16,430 Mil.
Total Current Assets was $6,580 Mil.
Total Current Liabilities was $6,873 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Enterprise Products Partners LP's current net income (ttm) was 2,727. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Enterprise Products Partners LP's current cash flow from operations (ttm) was 4,207. ==> 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)/Average Total Assets from Jun13 to Jun14
=2727.4/40140.48
=0.06794637

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=2508.3/36171.52
=0.06934461

Enterprise Products Partners LP's return on assets of this year was 0.06794637. Enterprise Products Partners LP's return on assets of last year was 0.06934461. ==> 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.

Enterprise Products Partners LP's current net income (ttm) was 2,727. Enterprise Products Partners LP's current cash flow from operations (ttm) was 4,207. ==> 4,207 > 2,727 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by 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/Total Assets
=17062.9/41571.3
=0.41044904

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=16429.6/37876.9
=0.43376306

Enterprise Products Partners LP's gearing of this year was 0.41044904. Enterprise Products Partners LP's gearing of last year was 0.43376306. ==> 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: Jun14)=Total Current Assets/Total Current Liabilities
=7471.9/8469.9
=0.88217098

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=6580/6873.1
=0.95735549

Enterprise Products Partners LP's current ratio of this year was 0.88217098. Enterprise Products Partners LP's current ratio of last year was 0.95735549. ==> 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.

Enterprise Products Partners LP's number of shares in issue this year was 1880.4. Enterprise Products Partners LP's number of shares in issue last year was 1837. ==> 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
=3654.6/50625.3
=0.0721892

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3394.4/44073.2
=0.07701733

Enterprise Products Partners LP's gross margin of this year was 0.0721892. Enterprise Products Partners LP's gross margin of last year was 0.07701733. ==> 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 average total assets throughout 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)/Average Total Assets from Jun13 to Jun14
=50625.3/40140.48
=1.26120315

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=44073.2/36171.52
=1.21845032

Enterprise Products Partners LP's asset turnover of this year was 1.26120315. Enterprise Products Partners LP's asset turnover of last year was 1.21845032. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+0+0+0+1
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Enterprise Products Partners LP 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, 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.

Enterprise Products Partners LP Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1110101111
Q4 1111111111
Q5 1010011111
Q6 1100101001
Q7 0000110000
Q8 0110110100
Q9 1111111101
F-score 7774877757

Enterprise Products Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0001100000
Q4 1111111111
Q5 1111001111
Q6 0000111100
Q7 0000000000
Q8 1110000000
Q9 1100000111
F-score 6655545655
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