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 local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 46 + 311 + 370 + 74 = $801 Mil.
Cash Flow from Operations was 754 + 960 + 466 + 1039 = $3,219 Mil.
Revenue was 5825 + 4481 + 5289 + 5531 = $21,126 Mil.
Gross Profit was 1090 + 1165 + 1285 + 1212 = $4,752 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(64145 + 65173 + 64315 + 66041 + 67927) / 5 = $65520.2 Mil.
Total Assets at the begining of this year (Sep15) was $64,145 Mil.
Long-Term Debt was $29,265 Mil.
Total Current Assets was $5,481 Mil.
Total Current Liabilities was $6,182 Mil.
Net Income was 108 + 281 + 654 + 417 = $1,460 Mil.

Revenue was 13427 + 10326 + 11540 + 6601 = $41,894 Mil.
Gross Profit was 1140 + 1220 + 1551 + 1141 = $5,052 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(48571 + 62518 + 50629 + 67551 + 64145) / 5 = $58682.8 Mil.
Total Assets at the begining of last year (Sep14) was $48,571 Mil.
Long-Term Debt was $27,449 Mil.
Total Current Assets was $5,325 Mil.
Total Current Liabilities was $4,483 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 801. ==> 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 3,219. ==> 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 0.01248733. Energy Transfer Partners LP's return on assets of last year was 0.03005909. ==> 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 801. Energy Transfer Partners LP's current cash flow from operations (TTM) was 3,219. ==> 3,219 > 801 ==> 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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=29265/65520.2
=0.44665615

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=27449/58682.8
=0.46775205

Energy Transfer Partners LP's gearing of this year was 0.44665615. Energy Transfer Partners LP's gearing of last year was 0.46775205. ==> 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: Sep16)=Total Current Assets/Total Current Liabilities
=5481/6182
=0.88660628

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=5325/4483
=1.18782066

Energy Transfer Partners LP's current ratio of this year was 0.88660628. Energy Transfer Partners LP's current ratio of last year was 1.18782066. ==> 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 507.4. Energy Transfer Partners LP's number of shares in issue last year was 487.3. ==> 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
=4752/21126
=0.2249361

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5052/41894
=0.12059006

Energy Transfer Partners LP's gross margin of this year was 0.2249361. Energy Transfer Partners LP's gross margin of last year was 0.12059006. ==> 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 (Sep15)
=21126/64145
=0.32934757

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=41894/48571
=0.86253114

Energy Transfer Partners LP's asset turnover of this year was 0.32934757. Energy Transfer Partners LP's asset turnover of last year was 0.86253114. ==> 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1111111111
Question 2 1111111111
Question 3 0011110100
Question 4 1111111111
Question 5 1100001011
Question 6 0001111000
Question 7 1111000000
Question 8 0111111111
Question 9 0011000000
F-score 5678666555
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