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Ensco PLC (NYSE:ESV)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Ensco PLC has an F-score of 3 indicating the company's financial situation is typical for a stable company.

ESV' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 3

3
9

During the past 13 years, the highest Piotroski F-Score of Ensco PLC was 9. 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 378.8 + 361.4 + 292.5 + -1172.7 = $-140 Mil.
Cash Flow from Operations was 701.1 + 547.9 + 416.6 + 572.7 = $2,238 Mil.
Revenue was 1266.2 + 1255.6 + 1187 + 1203 = $4,912 Mil.
Gross Profit was 647 + 639.9 + 582.6 + 627 = $2,497 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(18806.6 + 19142.9 + 19472.9 + 19521.2 + 18271.2) / 5 = $19,043 Mil.
Total Assets was $18,271 Mil.
Long-Term Debt was $4,679 Mil.
Total Current Assets was $1,776 Mil.
Total Current Liabilities was $1,090 Mil.
Net Income was 343.5 + 219.5 + 317.1 + 360.9 = $1,241 Mil.

Revenue was 1123.5 + 1085.5 + 1149.9 + 1130.3 = $4,489 Mil.
Gross Profit was 616.2 + 561 + 589.1 + 603.1 = $2,369 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(18158.2 + 18234.3 + 18565.3 + 18592.5 + 18806.6) / 5 = $18,471 Mil.
Total Assets was $18,807 Mil.
Long-Term Debt was $4,759 Mil.
Total Current Assets was $1,784 Mil.
Total Current Liabilities was $861 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.

Ensco PLC's current net income (ttm) was -140. ==> Negative ==> Score 0.

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.

Ensco PLC's current cash flow from operations (ttm) was 2,238. ==> 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
=-140/19042.96
=-0.0073518

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=1241/18471.38
=0.06718502

Ensco PLC's return on assets of this year was -0.0073518. Ensco PLC's return on assets of last year was 0.06718502. ==> 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.

Ensco PLC's current net income (ttm) was -140. Ensco PLC's current cash flow from operations (ttm) was 2,238. ==> 2,238 > -140 ==> 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
=4679.1/18271.2
=0.25609155

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=4758.7/18806.6
=0.25303351

Ensco PLC's gearing of this year was 0.25609155. Ensco PLC's gearing of last year was 0.25303351. ==> 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
=1775.8/1090
=1.62917431

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=1783.5/861.3
=2.07070707

Ensco PLC's current ratio of this year was 1.62917431. Ensco PLC's current ratio of last year was 2.07070707. ==> 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.

Ensco PLC's number of shares in issue this year was 231.5. Ensco PLC's number of shares in issue last year was 231. ==> 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
=2496.5/4911.8
=0.50826581

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2369.4/4489.2
=0.52780005

Ensco PLC's gross margin of this year was 0.50826581. Ensco PLC's gross margin of last year was 0.52780005. ==> 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
=4911.8/19042.96
=0.25793259

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=4489.2/18471.38
=0.24303544

Ensco PLC's asset turnover of this year was 0.25793259. Ensco PLC's asset turnover of last year was 0.24303544. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+0+1+0+0+0+0+1
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Ensco PLC has an F-score of 3 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.

Ensco PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0111100111
Q4 1111111111
Q5 1111111011
Q6 0110111010
Q7 0001110000
Q8 1110100010
Q9 0111100111
F-score 5887965586

Ensco PLC Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111110
Q2 1111111111
Q3 0111111110
Q4 1111111111
Q5 0111111110
Q6 0011111000
Q7 0000000000
Q8 0011110000
Q9 1111111111
F-score 5466687663
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