Switch to:
Finisar Corp (NAS:FNSR)
Piotroski F-Score
6 (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

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

FNSR' s 10-Year Piotroski F-Score Range
Min: 1   Max: 8
Current: 6

1
8

During the past 13 years, the highest Piotroski F-Score of Finisar Corp was 8. The lowest was 1. 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 (Oct14) TTM:Last Year (Oct13) TTM:
Net Income was 27.061 + 28.75 + 14.243 + -11.362 = $59 Mil.
Cash Flow from Operations was 14.585 + 14.201 + 26.014 + 8.861 = $64 Mil.
Revenue was 294.018 + 306.025 + 327.638 + 296.981 = $1,225 Mil.
Gross Profit was 105.689 + 96.564 + 98.819 + 84.92 = $386 Mil.
Average Total Assets from the begining of this year (Oct13)
to the end of this year (Oct14) was
(1145.384 + 1427.786 + 1497.546 + 1543.652 + 1518.227) / 5 = $1426.519 Mil.
Total Assets at the begining of this year (Oct13) was $1,145 Mil.
Long-Term Debt was $217 Mil.
Total Current Assets was $1,049 Mil.
Total Current Liabilities was $231 Mil.
Net Income was -3.407 + 3.879 + 26.011 + 29.965 = $56 Mil.

Revenue was 238.351 + 243.417 + 266.068 + 290.722 = $1,039 Mil.
Gross Profit was 68.044 + 67.326 + 91.373 + 103.373 = $330 Mil.
Average Total Assets from the begining of last year (Oct12)
to the end of last year (Oct13) was
(988.187 + 994.757 + 1007.847 + 1065.315 + 1145.384) / 5 = $1040.298 Mil.
Total Assets at the begining of last year (Oct12) was $988 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $781 Mil.
Total Current Liabilities was $238 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.

Finisar Corp's current net income (TTM) was 59. ==> 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.

Finisar Corp's current cash flow from operations (TTM) was 64. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Oct13)
=58.692/1145.384
=0.0512422

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=56.448/988.187
=0.05712279

Finisar Corp's return on assets of this year was 0.0512422. Finisar Corp's return on assets of last year was 0.05712279. ==> 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.

Finisar Corp's current net income (TTM) was 59. Finisar Corp's current cash flow from operations (TTM) was 64. ==> 64 > 59 ==> 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: Oct14)=Long-Term Debt/Average Total Assets from Oct13 to Oct14
=216.775/1426.519
=0.15196082

Gearing (Last Year: Oct13)=Long-Term Debt/Average Total Assets from Oct12 to Oct13
=0/1040.298
=0

Finisar Corp's gearing of this year was 0.15196082. Finisar Corp's gearing of last year was 0. ==> Last year is lower than this year ==> 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: Oct14)=Total Current Assets/Total Current Liabilities
=1048.578/231.328
=4.53286243

Current Ratio (Last Year: Oct13)=Total Current Assets/Total Current Liabilities
=781.002/238.295
=3.27745861

Finisar Corp's current ratio of this year was 4.53286243. Finisar Corp's current ratio of last year was 3.27745861. ==> 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.

Finisar Corp's number of shares in issue this year was 99.6. Finisar Corp's number of shares in issue last year was 103.7. ==> There is smaller number of shares in issue this year, or the same. ==> 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: TTM)=Gross Profit/Revenue
=385.992/1224.662
=0.31518247

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=330.116/1038.558
=0.31785996

Finisar Corp's gross margin of this year was 0.31518247. Finisar Corp's gross margin of last year was 0.31785996. ==> Last year's gross margin is higher ==> Score 0.

Q9. 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 (Oct13)
=1224.662/1145.384
=1.06921522

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=1038.558/988.187
=1.05097315

Finisar Corp's asset turnover of this year was 1.06921522. Finisar Corp's asset turnover of last year was 1.05097315. ==> 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+0+1+1+0+1
=6

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

Finisar 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.

Finisar Corp Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
Q1 0000011101
Q2 0011111111
Q3 1100011001
Q4 1111101110
Q5 0111011110
Q6 0100111000
Q7 0000000010
Q8 1110011001
Q9 1110110001
F-score 4653477445

Finisar Corp Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Q1 1110111111
Q2 1111111111
Q3 0000011110
Q4 1111111011
Q5 1111110000
Q6 1110000001
Q7 1011000001
Q8 0000111110
Q9 0000111111
F-score 6564676566
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