Switch to:
Fortress Investment Group LLC (NYSE:FIG)
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

Fortress Investment Group LLC has an F-score of 6 indicating the company's financial situation is typical for a stable company.

FIG' 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 Fortress Investment Group LLC 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 2.936 + 145.813 + 42.381 + -2.076 = $189 Mil.
Cash Flow from Operations was -98.529 + 100.383 + 140.439 + 106.421 = $249 Mil.
Revenue was 310.166 + 565.535 + 232.019 + 223.074 = $1,331 Mil.
Gross Profit was 310.166 + 565.535 + 232.019 + 223.074 = $1,331 Mil.
Total Assets at the begining of this year (Mar13) was $2,211 Mil.
Total Assets was $2,899 Mil.
Long-Term Debt was $307 Mil.
Total Current Assets was $358 Mil.
Total Current Liabilities was $543 Mil.
Net Income was 14.329 + 102.207 + 0.708 + 4.909 = $122 Mil.

Revenue was 244.355 + 417.64 + 181.523 + 199.048 = $1,043 Mil.
Gross Profit was 244.355 + 417.64 + 181.523 + 199.048 = $1,043 Mil.
Total Assets at the begining of last year (Mar12) was $2,080 Mil.
Total Assets was $2,211 Mil.
Long-Term Debt was $109 Mil.
Total Current Assets was $390 Mil.
Total Current Liabilities was $454 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.

Fortress Investment Group LLC's current net income was 189. ==> 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.

Fortress Investment Group LLC's current cash flow from operations was 249. ==> 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 (Mar13)
=189.054/2210.789
=0.08551427

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=122.153/2079.755
=0.05873432

Fortress Investment Group LLC's return on assets of this year was 0.08551427. Fortress Investment Group LLC's return on assets of last year was 0.05873432. ==> This year is higher. ==> Score 1.

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.

Fortress Investment Group LLC's current net income was 189. Fortress Investment Group LLC's current cash flow from operations was 249. ==> 249 > 189 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=306.978/2898.545
=0.10590762

Gearing (Last Year)=Long-Term Debt/Total Assets
=109.453/2210.789
=0.04950857

Fortress Investment Group LLC's gearing of this year was 0.10590762. Fortress Investment Group LLC's gearing of last year was 0.04950857. ==> Last year is lower ==> Score 0.

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
=358.407/543.186
=0.65982371

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=390.079/454.432
=0.85838805

Fortress Investment Group LLC's current ratio of this year was 0.65982371. Fortress Investment Group LLC's current ratio of last year was 0.85838805. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Fortress Investment Group LLC's number of shares in issue this year was 229. Fortress Investment Group LLC's number of shares in issue last year was 496.3. ==> There is the same number of shares in issue this year, or fewer. ==> 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)=Gross Profit/Revenue
=1330.794/1330.794
=1

Gross Margin (Last Year)=Gross Profit/Revenue
=1042.566/1042.566
=1

Fortress Investment Group LLC's gross margin of this year was 1. Fortress Investment Group LLC's gross margin of last year was 1. ==> 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 (Mar13)
=1330.794/2210.789
=0.60195432

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=1042.566/2079.755
=0.5012927

Fortress Investment Group LLC's asset turnover of this year was 0.60195432. Fortress Investment Group LLC's asset turnover of last year was 0.5012927. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Fortress Investment Group LLC 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.

Fortress Investment Group LLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 110000011
Q2 000111111
Q3 010010011
Q4 000111111
Q5 011001111
Q6 001001001
Q7 000000001
Q8 001000000
Q9 100111011
F-score 233345368

Fortress Investment Group LLC Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 0000111111
Q2 1111111111
Q3 1011111111
Q4 1111111111
Q5 1111111110
Q6 0110000010
Q7 0000011111
Q8 0000000000
Q9 0000111111
F-score 4454677786
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
Email Hide