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Fluor Corporation (NYSE:FLR)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

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

Fluor Corporation has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

FLR' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 8

3
8

During the past 13 years, the highest Piotroski F-Score of Fluor Corporation was 8. 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 166.795 + 173.046 + 161.412 + 166.458 = $668 Mil.
Cash Flow from Operations was 76.256 + 470.321 + 264.053 + -21.724 = $789 Mil.
Revenue was 6291.405 + 6684.216 + 7190.328 + 7185.624 = $27,352 Mil.
Gross Profit was 335.93 + 354.531 + 332.856 + 341.874 = $1,365 Mil.
Total Assets at the begining of this year (Dec12) was $8,276 Mil.
Total Assets was $8,324 Mil.
Long-Term Debt was $497 Mil.
Total Current Assets was $6,004 Mil.
Total Current Liabilities was $3,407 Mil.
Net Income was -4.325 + 144.583 + 161.19 + 154.882 = $456 Mil.

Revenue was 7022.722 + 7136.056 + 7128.249 + 6290.108 = $27,577 Mil.
Gross Profit was -15.642 + 306.275 + 318.466 + 275.898 = $885 Mil.
Total Assets at the begining of last year (Dec11) was $8,268 Mil.
Total Assets was $8,276 Mil.
Long-Term Debt was $520 Mil.
Total Current Assets was $6,094 Mil.
Total Current Liabilities was $3,887 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.

Fluor Corporation's current net income was 668. ==> 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.

Fluor Corporation's current cash flow from operations was 789. ==> 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 (Dec12)
=667.711/8276.043
=0.08067998

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=456.33/8268.364
=0.05518988

Fluor Corporation's return on assets of this year was 0.08067998. Fluor Corporation's return on assets of last year was 0.05518988. ==> 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.

Fluor Corporation's current net income was 668. Fluor Corporation's current cash flow from operations was 789. ==> 789 > 668 ==> 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
=496.604/8323.85
=0.05966037

Gearing (Last Year)=Long-Term Debt/Total Assets
=520.205/8276.043
=0.06285673

Fluor Corporation's gearing of this year was 0.05966037. Fluor Corporation's gearing of last year was 0.06285673. ==> This year is lower. ==> 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
=6003.683/3407.16
=1.76207839

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=6094.137/3887.114
=1.56777933

Fluor Corporation's current ratio of this year was 1.76207839. Fluor Corporation's current ratio of last year was 1.56777933. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Fluor Corporation's number of shares in issue this year was 164.4. Fluor Corporation's number of shares in issue last year was 166.2. ==> 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
=1365.191/27351.573
=0.04991271

Gross Margin (Last Year)=Gross Profit/Revenue
=884.997/27577.135
=0.03209169

Fluor Corporation's gross margin of this year was 0.04991271. Fluor Corporation's gross margin of last year was 0.03209169. ==> This year's gross margin is higher. ==> Score 1.

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 (Dec12)
=27351.573/8276.043
=3.30490948

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=27577.135/8268.364
=3.33525895

Fluor Corporation's asset turnover of this year was 3.30490948. Fluor Corporation's asset turnover of last year was 3.33525895. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+1+1+0
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Fluor Corporation has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


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 Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 0111111111
Q3 1111100101
Q4 0111111111
Q5 0101111001
Q6 1011111011
Q7 0000010111
Q8 0011110101
Q9 0101100110
F-score 3668875768

Fluor Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1111100001
Q4 1100111111
Q5 0000101111
Q6 1011111111
Q7 1111111111
Q8 0111100001
Q9 0111111100
F-score 6777967768
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