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Energy Transfer Partners LP (NYSE:ETP)
Piotroski F-Score
5 (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

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

ETP' s 10-Year Piotroski F-Score Range
Min: 3   Max: 7
Current: 5

3
7

During the past 13 years, the highest Piotroski F-Score of Energy Transfer Partners LP was 7. The lowest was 3. And the median was 5.


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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was -541 + 415 + 471 + 342 = $687 Mil.
Cash Flow from Operations was 631 + 682 + 891 + 421 = $2,625 Mil.
Revenue was 12032 + 12232 + 13029 + 13618 = $50,911 Mil.
Gross Profit was 918 + 1047 + 1085 + 1093 = $4,143 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(43556 + 43702 + 43589 + 44223 + 48571) / 5 = $44728.2 Mil.
Total Assets at the begining of this year (Sep13) was $43,556 Mil.
Long-Term Debt was $17,540 Mil.
Total Current Assets was $7,444 Mil.
Total Current Liabilities was $7,621 Mil.
Net Income was 307 + 322 + 320 + 355 = $1,304 Mil.

Revenue was 10981 + 10854 + 11551 + 11902 = $45,288 Mil.
Gross Profit was 863 + 933 + 995 + 901 = $3,692 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(18297.56 + 43230 + 44368 + 43651 + 43556) / 5 = $38620.512 Mil.
Total Assets at the begining of last year (Sep12) was $18,298 Mil.
Long-Term Debt was $16,352 Mil.
Total Current Assets was $6,582 Mil.
Total Current Liabilities was $5,588 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.

Energy Transfer Partners LP's current net income (TTM) was 687. ==> 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.

Energy Transfer Partners LP's current cash flow from operations (TTM) was 2,625. ==> 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 (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=1304/18297.56
=0.07126633

Energy Transfer Partners LP's return on assets of this year was 0.0157728. Energy Transfer Partners LP's return on assets of last year was 0.07126633. ==> 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.

Energy Transfer Partners LP's current net income (TTM) was 687. Energy Transfer Partners LP's current cash flow from operations (TTM) was 2,625. ==> 2,625 > 687 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=17540/44728.2
=0.39214634

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=16352/38620.512
=0.42340195

Energy Transfer Partners LP's gearing of this year was 0.39214634. Energy Transfer Partners LP's gearing of last year was 0.42340195. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=7444/7621
=0.9767747

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=6582/5588
=1.17788117

Energy Transfer Partners LP's current ratio of this year was 0.9767747. Energy Transfer Partners LP's current ratio of last year was 1.17788117. ==> 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.

Energy Transfer Partners LP's number of shares in issue this year was 333.1. Energy Transfer Partners LP's number of shares in issue last year was 375.5. ==> 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
=4143/50911
=0.08137731

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3692/45288
=0.0815227

Energy Transfer Partners LP's gross margin of this year was 0.08137731. Energy Transfer Partners LP's gross margin of last year was 0.0815227. ==> 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 (Sep13)
=50911/43556
=1.16886307

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=45288/18297.56
=2.47508411

Energy Transfer Partners LP's asset turnover of this year was 1.16886307. Energy Transfer Partners LP's asset turnover of last year was 2.47508411. ==> 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+1+0+1+0+0
=5

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

Energy Transfer 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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Energy Transfer Partners LP Annual Data

Aug04Aug05Aug06Aug07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1101000110
Q4 1011111101
Q5 0100011111
Q6 1010010011
Q7 0000000000
Q8 1011010100
Q9 1000000111
F-score 7455364766

Energy Transfer Partners LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 1110000000
Q4 0001111111
Q5 1101111111
Q6 0010111000
Q7 0000000011
Q8 1100000000
Q9 0011111000
F-score 5555666455
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