Switch to:
Entergy Corp (NYSE:ETR)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

Entergy Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

ETR' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 6

4
8

During the past 13 years, the highest Piotroski F-Score of Entergy Corp was 8. The lowest was 4. 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 194.281 + 406.053 + 151.352 + 244.182 = $996 Mil.
Cash Flow from Operations was 761.406 + 767.157 + 989.76 + 1083.554 = $3,602 Mil.
Revenue was 2996.65 + 3208.843 + 2691.906 + 3351.959 = $12,249 Mil.
Gross Profit was 1808.174 + 2030.843 + 1696.507 + 2076.402 = $7,612 Mil.
Total Assets at the begining of this year (Jun13) was $43,262 Mil.
Total Assets was $44,151 Mil.
Long-Term Debt was $11,967 Mil.
Total Current Assets was $4,245 Mil.
Total Current Liabilities was $4,128 Mil.
Net Income was 168.055 + 166.982 + 301.85 + 342.67 = $980 Mil.

Revenue was 2738.208 + 2608.874 + 2436.259 + 2963.56 = $10,747 Mil.
Gross Profit was 1696.392 + 1664.693 + 1621.393 + 1968.156 = $6,951 Mil.
Total Assets at the begining of last year (Jun12) was $40,918 Mil.
Total Assets was $43,262 Mil.
Long-Term Debt was $12,128 Mil.
Total Current Assets was $3,592 Mil.
Total Current Liabilities was $3,984 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.

Entergy Corp's current net income was 996. ==> 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.

Entergy Corp's current cash flow from operations was 3,602. ==> 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/Total Assets at the beginning of this year (Jun13)
=995.868/43262.285
=0.02301931

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=979.557/40917.605
=0.02393974

Entergy Corp's return on assets of this year was 0.02301931. Entergy Corp's return on assets of last year was 0.02393974. ==> 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.

Entergy Corp's current net income was 996. Entergy Corp's current cash flow from operations was 3,602. ==> 3,602 > 996 ==> 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)=Long-Term Debt/Total Assets
=11967.093/44150.747
=0.27105075

Gearing (Last Year)=Long-Term Debt/Total Assets
=12128.154/43262.285
=0.28034012

Entergy Corp's gearing of this year was 0.27105075. Entergy Corp's gearing of last year was 0.28034012. ==> 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)=Total Current Assets/Total Current Liabilities
=4245.133/4128.069
=1.02835805

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=3591.722/3983.954
=0.90154706

Entergy Corp's current ratio of this year was 1.02835805. Entergy Corp's current ratio of last year was 0.90154706. ==> This year's current ratio is higher. ==> Score 1.

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.

Entergy Corp's number of shares in issue this year was 180. Entergy Corp's number of shares in issue last year was 178.6. ==> 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)=Gross Profit/Revenue
=7611.926/12249.358
=0.62141428

Gross Margin (Last Year)=Gross Profit/Revenue
=6950.634/10746.901
=0.64675705

Entergy Corp's gross margin of this year was 0.62141428. Entergy Corp's gross margin of last year was 0.64675705. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Jun13)
=12249.358/43262.285
=0.28314172

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=10746.901/40917.605
=0.26264736

Entergy Corp's asset turnover of this year was 0.28314172. Entergy Corp's asset turnover of last year was 0.26264736. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+1+0+0+1
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Entergy Corp has an F-score of 6 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.

Entergy Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0010100100
Q4 1111111111
Q5 1010011100
Q6 1010111011
Q7 1111111110
Q8 0101010110
Q9 1101101001
F-score 7676777765

Entergy Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0000101000
Q4 1111111111
Q5 1100110001
Q6 0001001111
Q7 1100000000
Q8 0111110000
Q9 0000001111
F-score 5645656556
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)
Free 7-day Trial
FEEDBACK