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Enstar Group Ltd (NAS:ESGR)
Piotroski F-Score
1 (As of Today)

Warning Sign:

Piotroski F-Score of 1 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Enstar Group Ltd has an F-score of 1. It is a bad or low score, which usually implies poor business operation.

ESGR' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Max: 6
Current: 1

1
6

During the past 13 years, the highest Piotroski F-Score of Enstar Group Ltd was 6. The lowest was 1. 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 (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was 14.545 + 49.042 + 111.857 + 45.52 = $221 Mil.
Cash Flow from Operations was -258.64 + -59.406 + -201.907 + -162.088 = $-682 Mil.
Revenue was 256.398 + 268.067 + 217.633 + 315.196 = $1,057 Mil.
Gross Profit was 256.398 + 268.067 + 217.633 + 315.196 = $1,057 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(11509.172 + 12332.36 + 12053.61 + 11832.132 + 12850.35) / 5 = $12115.5248 Mil.
Total Assets at the begining of this year (Mar15) was $11,509 Mil.
Long-Term Debt was $581 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Net Income was 51.793 + 26.429 + 105.94 + 44.847 = $229 Mil.

Revenue was 296.485 + 212.436 + 223.019 + 287.299 = $1,019 Mil.
Gross Profit was 296.485 + 212.436 + 223.019 + 287.299 = $1,019 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(8709.307 + 10618.096 + 10249.445 + 9936.885 + 11509.172) / 5 = $10204.581 Mil.
Total Assets at the begining of last year (Mar14) was $8,709 Mil.
Long-Term Debt was $430 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 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.

Enstar Group Ltd's current net income (TTM) was 221. ==> 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.

Enstar Group Ltd's current cash flow from operations (TTM) was -682. ==> Negative ==> Score 0.

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 (Mar15)
=220.964/11509.172
=0.01919895

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=229.009/8709.307
=0.02629474

Enstar Group Ltd's return on assets of this year was 0.01919895. Enstar Group Ltd's return on assets of last year was 0.02629474. ==> 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.

Enstar Group Ltd's current net income (TTM) was 221. Enstar Group Ltd's current cash flow from operations (TTM) was -682. ==> -682 <= 221 ==> CFROA <= ROA ==> Score 0.

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
=580.614/12115.5248
=0.04792314

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=429.998/10204.581
=0.04213774

Enstar Group Ltd's gearing of this year was 0.04792314. Enstar Group Ltd's gearing of last year was 0.04213774. ==> Last year is lower than this year ==> Score 0.

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
=0/0
=

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=0/0
=

Enstar Group Ltd's current ratio of this year was . Enstar Group Ltd's current ratio of last year was . ==> 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.

Enstar Group Ltd's number of shares in issue this year was 19.4. Enstar Group Ltd's number of shares in issue last year was 19.3. ==> 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
=1057.294/1057.294
=1

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1019.239/1019.239
=1

Enstar Group Ltd's gross margin of this year was 1. Enstar Group Ltd's gross margin of last year was 1. ==> 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 (Mar15)
=1057.294/11509.172
=0.09186534

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=1019.239/8709.307
=0.11702871

Enstar Group Ltd's asset turnover of this year was 0.09186534. Enstar Group Ltd's asset turnover of last year was 0.11702871. ==> 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+0+0+0+0+0+0+0+0
=1

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

Enstar Group Ltd has an F-score of 1. It is a bad or low score, which usually implies poor business operation.


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.

Enstar Group Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1110000010
Question 3 1000100100
Question 4 0110000010
Question 5 0101111010
Question 6 0000000000
Question 7 0100000000
Question 8 0000000000
Question 9 1001101111
F-score 4533423352

Enstar Group Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 0011110000
Question 3 1111000000
Question 4 0011110000
Question 5 0001110000
Question 6 0000000000
Question 7 0000000000
Question 8 0000000000
Question 9 1111111110
F-score 3356552221
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