Switch to:
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 Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 5

3
8

During the past 13 years, the highest Piotroski F-Score of Energy Transfer Partners LP was 8. 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 (Jun16) TTM:Last Year (Jun15) TTM:
Net Income was 417 + 46 + 311 + 370 = $1,144 Mil.
Cash Flow from Operations was 860 + 754 + 960 + 466 = $3,040 Mil.
Revenue was 6601 + 5825 + 4481 + 5289 = $22,196 Mil.
Gross Profit was 1141 + 1090 + 1165 + 1285 = $4,681 Mil.
Average Total Assets from the begining of this year (Jun15)
to the end of this year (Jun16) was
(67551 + 64145 + 65173 + 64315 + 66041) / 5 = $65445 Mil.
Total Assets at the begining of this year (Jun15) was $67,551 Mil.
Long-Term Debt was $28,132 Mil.
Total Current Assets was $5,329 Mil.
Total Current Liabilities was $5,359 Mil.
Net Income was 342 + 108 + 281 + 654 = $1,385 Mil.

Revenue was 14933 + 13427 + 10326 + 11540 = $50,226 Mil.
Gross Profit was 1372 + 1140 + 1220 + 1551 = $5,283 Mil.
Average Total Assets from the begining of last year (Jun14)
to the end of last year (Jun15) was
(44223 + 48571 + 62518 + 50629 + 67551) / 5 = $54698.4 Mil.
Total Assets at the begining of last year (Jun14) was $44,223 Mil.
Long-Term Debt was $29,058 Mil.
Total Current Assets was $7,259 Mil.
Total Current Liabilities was $5,161 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.

Energy Transfer Partners LP's current net income (TTM) was 1,144. ==> 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.

Energy Transfer Partners LP's current cash flow from operations (TTM) was 3,040. ==> Positive ==> Score 1.

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.

Energy Transfer Partners LP's return on assets of this year was 0.01693535. Energy Transfer Partners LP's return on assets of last year was 0.03131854. ==> 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.

Energy Transfer Partners LP's current net income (TTM) was 1,144. Energy Transfer Partners LP's current cash flow from operations (TTM) was 3,040. ==> 3,040 > 1,144 ==> CFROA > ROA ==> Score 1.

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: Jun16)=Long-Term Debt/Average Total Assets from Jun15 to Jun16
=28132/65445
=0.42985713

Gearing (Last Year: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=29058/54698.4
=0.5312404

Energy Transfer Partners LP's gearing of this year was 0.42985713. Energy Transfer Partners LP's gearing of last year was 0.5312404. ==> This year is lower or equal to last year. ==> Score 1.

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: Jun16)=Total Current Assets/Total Current Liabilities
=5329/5359
=0.99440194

Current Ratio (Last Year: Jun15)=Total Current Assets/Total Current Liabilities
=7259/5161
=1.40651037

Energy Transfer Partners LP's current ratio of this year was 0.99440194. Energy Transfer Partners LP's current ratio of last year was 1.40651037. ==> 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.

Energy Transfer Partners LP's number of shares in issue this year was 502.7. Energy Transfer Partners LP's number of shares in issue last year was 436.3. ==> 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
=4681/22196
=0.21089385

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5283/50226
=0.10518457

Energy Transfer Partners LP's gross margin of this year was 0.21089385. Energy Transfer Partners LP's gross margin of last year was 0.10518457. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun15)
=22196/67551
=0.32858137

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=50226/44223
=1.13574384

Energy Transfer Partners LP's asset turnover of this year was 0.32858137. Energy Transfer Partners LP's asset turnover of last year was 1.13574384. ==> 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+1+0+1+1+0+0+1+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

Aug06Aug07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0100011010
Question 4 1111110111
Question 5 0101110101
Question 6 1011001101
Question 7 0000000010
Question 8 1101110011
Question 9 0010011110
F-score 5656575676

Energy Transfer Partners LP Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Question 1 1111111111
Question 2 1111111111
Question 3 0001111010
Question 4 1111111111
Question 5 1110000101
Question 6 0000111100
Question 7 0111100000
Question 8 0011111111
Question 9 0001100000
F-score 4567866655
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK