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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: 4   Max: 7
Current: 5

4
7

During the past 13 years, the highest Piotroski F-Score of Energy Transfer Partners LP was 7. The lowest was 4. 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 (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 415 + 471 + 342 + 108 = $1,336 Mil.
Cash Flow from Operations was 682 + 891 + 421 + 564 = $2,558 Mil.
Revenue was 12232 + 13029 + 13618 + 12279 = $51,158 Mil.
Gross Profit was 1047 + 1085 + 1093 + 757 = $3,982 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(43702 + 43589 + 44223 + 48571 + 48221) / 5 = $45661.2 Mil.
Total Assets at the begining of this year (Dec13) was $43,702 Mil.
Long-Term Debt was $18,332 Mil.
Total Current Assets was $5,439 Mil.
Total Current Liabilities was $6,040 Mil.
Net Income was 322 + 320 + 355 + -541 = $456 Mil.

Revenue was 10854 + 11551 + 11902 + 12032 = $46,339 Mil.
Gross Profit was 933 + 995 + 901 + 865 = $3,694 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(43230 + 44368 + 43651 + 43556 + 43702) / 5 = $43701.4 Mil.
Total Assets at the begining of last year (Dec12) was $43,230 Mil.
Long-Term Debt was $16,451 Mil.
Total Current Assets was $6,239 Mil.
Total Current Liabilities was $6,067 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 1,336. ==> 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 2,558. ==> 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 0.03057068. Energy Transfer Partners LP's return on assets of last year was 0.01054823. ==> This year is higher. ==> Score 1.

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 1,336. Energy Transfer Partners LP's current cash flow from operations (TTM) was 2,558. ==> 2,558 > 1,336 ==> 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: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=18332/45661.2
=0.40147872

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=16451/43701.4
=0.37644103

Energy Transfer Partners LP's gearing of this year was 0.40147872. Energy Transfer Partners LP's gearing of last year was 0.37644103. ==> 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: Dec14)=Total Current Assets/Total Current Liabilities
=5439/6040
=0.90049669

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=6239/6067
=1.02835009

Energy Transfer Partners LP's current ratio of this year was 0.90049669. Energy Transfer Partners LP's current ratio of last year was 1.02835009. ==> 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 352. Energy Transfer Partners LP's number of shares in issue last year was 345.2. ==> 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
=3982/51158
=0.07783729

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3694/46339
=0.07971687

Energy Transfer Partners LP's gross margin of this year was 0.07783729. Energy Transfer Partners LP's gross margin of last year was 0.07971687. ==> 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 (Dec13)
=51158/43702
=1.17061004

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=46339/43230
=1.07191765

Energy Transfer Partners LP's asset turnover of this year was 1.17061004. Energy Transfer Partners LP's asset turnover of last year was 1.07191765. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+0+0+1
=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

Aug05Aug06Aug07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1111111111
Question 2 1111111111
Question 3 1010001101
Question 4 0111111011
Question 5 1000111110
Question 6 0100100110
Question 7 0000000001
Question 8 0110101000
Question 9 0000001111
F-score 4553647666

Energy Transfer Partners LP Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Question 1 1111111111
Question 2 1111111111
Question 3 1100000001
Question 4 0011111111
Question 5 1011111110
Question 6 0101110000
Question 7 0000000110
Question 8 1000000000
Question 9 0111110001
F-score 5556664555
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