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Fluor Corp (NYSE:FLR)
Piotroski F-Score
4 (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

Fluor Corp has an F-score of 4 indicating the company's financial situation is typical for a stable company.

FLR' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 4

3
9

During the past 13 years, the highest Piotroski F-Score of Fluor Corp was 9. The lowest was 3. 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 (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was 148.507 + 171.283 + -51.357 + 104.323 = $373 Mil.
Cash Flow from Operations was 164.907 + 366.234 + 278.709 + 114.655 = $925 Mil.
Revenue was 4810.106 + 4384.612 + 4370.681 + 4423.889 = $17,989 Mil.
Gross Profit was 293.981 + 250.793 + 252.462 + 255.822 = $1,053 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(7619.196 + 7560.373 + 7599.361 + 7631.506 + 9001.727) / 5 = $7882.4326 Mil.
Total Assets at the begining of this year (Mar15) was $7,619 Mil.
Long-Term Debt was $1,572 Mil.
Total Current Assets was $5,403 Mil.
Total Current Liabilities was $3,590 Mil.
Net Income was 77.79 + 69.502 + 214.543 + 144.079 = $506 Mil.

Revenue was 5251.664 + 5440.081 + 5455.196 + 4548.649 = $20,696 Mil.
Gross Profit was 345.312 + 380.121 + 361.268 + 297.46 = $1,384 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(7991.937 + 8398.951 + 8048.705 + 8194.429 + 7619.196) / 5 = $8050.6436 Mil.
Total Assets at the begining of last year (Mar14) was $7,992 Mil.
Long-Term Debt was $992 Mil.
Total Current Assets was $5,379 Mil.
Total Current Liabilities was $2,820 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.

Fluor Corp's current net income (TTM) was 373. ==> 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.

Fluor Corp's current cash flow from operations (TTM) was 925. ==> 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.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Mar15)
=372.756/7619.196
=0.04892327

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=505.914/7991.937
=0.06330305

Fluor Corp's return on assets of this year was 0.04892327. Fluor Corp's return on assets of last year was 0.06330305. ==> 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.

Fluor Corp's current net income (TTM) was 373. Fluor Corp's current cash flow from operations (TTM) was 925. ==> 925 > 373 ==> 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: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=1572.001/7882.4326
=0.19943095

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=992.231/8050.6436
=0.12324866

Fluor Corp's gearing of this year was 0.19943095. Fluor Corp's gearing of last year was 0.12324866. ==> 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: Mar16)=Total Current Assets/Total Current Liabilities
=5402.869/3589.93
=1.50500678

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=5379.253/2819.696
=1.90774218

Fluor Corp's current ratio of this year was 1.50500678. Fluor Corp's current ratio of last year was 1.90774218. ==> 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.

Fluor Corp's number of shares in issue this year was 140.9. Fluor Corp's number of shares in issue last year was 149.9. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=1053.058/17989.288
=0.05853806

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1384.161/20695.59
=0.06688193

Fluor Corp's gross margin of this year was 0.05853806. Fluor Corp's gross margin of last year was 0.06688193. ==> 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 (Mar15)
=17989.288/7619.196
=2.36104807

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=20695.59/7991.937
=2.5895587

Fluor Corp's asset turnover of this year was 2.36104807. Fluor Corp's asset turnover of last year was 2.5895587. ==> 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+0+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Fluor Corp has an F-score of 4 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.

Fluor Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1110010100
Question 4 1111111111
Question 5 0111101100
Question 6 1111101101
Question 7 0001011111
Question 8 1111010110
Question 9 0110011000
F-score 6887577855

Fluor Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 1110001100
Question 4 1111100111
Question 5 1000000000
Question 6 1111011110
Question 7 1111111111
Question 8 1111111100
Question 9 0000000000
F-score 8776556754
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