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GuruFocus has detected 5 Warning Signs with Statoil ASA $FRA:DNQA.
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Statoil ASA (FRA:DNQA)
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

Statoil ASA has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

FRA:DNQA' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 8
Current: 4

4
8

During the past 13 years, the highest Piotroski F-Score of Statoil ASA 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 local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was 545.079022989 + -273.228907084 + -384.923817161 + -2644.80045502 = €-2,758 Mil.
Cash Flow from Operations was 1980.06465517 + 1018.15592738 + 3259.37806291 + 1921.50914779 = €8,179 Mil.
Revenue was 9083.15373563 + 9696.51121396 + 10786.7771541 + 12092.1414352 = €41,659 Mil.
Gross Profit was 3320.76149425 + 3225.34709861 + 3558.76325403 + 3817.42345246 = €13,922 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(100745.432847 + 101294.899425 + 98822.5347099 + 101209.12412 + 99089.9611338) / 5 = €100232.390447 Mil.
Total Assets at the begining of this year (Dec15) was €100,745 Mil.
Long-Term Debt was €26,542 Mil.
Total Current Assets was €24,074 Mil.
Total Current Liabilities was €15,924 Mil.
Net Income was -4229.88080939 + 767.174552259 + -310.07751938 + -1033.69136142 = €-4,806 Mil.

Revenue was 14333.3641319 + 15523.4785708 + 12130.4464047 + 12019.645644 = €54,007 Mil.
Gross Profit was 5542.82546429 + 6577.56393121 + 4117.43740533 + 4473.51510144 = €20,711 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(107601.65369 + 114262.219348 + 107592.738127 + 103479.950993 + 100745.432847) / 5 = €106736.399001 Mil.
Total Assets at the begining of last year (Dec14) was €107,602 Mil.
Long-Term Debt was €27,508 Mil.
Total Current Assets was €25,846 Mil.
Total Current Liabilities was €14,104 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.

Statoil ASA's current net income (TTM) was -2,758. ==> Negative ==> Score 0.

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.

Statoil ASA's current cash flow from operations (TTM) was 8,179. ==> 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 (Dec15)
=-2757.87415628/100745.432847
=-0.02737468

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=-4806.47513793/107601.65369
=-0.04466916

Statoil ASA's return on assets of this year was -0.02737468. Statoil ASA's return on assets of last year was -0.04466916. ==> This year is higher. ==> Score 1.

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.

Statoil ASA's current net income (TTM) was -2,758. Statoil ASA's current cash flow from operations (TTM) was 8,179. ==> 8,179 > -2,758 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=26541.8523083/100232.390447
=0.26480315

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=27508.4916919/106736.399001
=0.25772363

Statoil ASA's gearing of this year was 0.26480315. Statoil ASA's gearing of last year was 0.25772363. ==> 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: Dec16)=Total Current Assets/Total Current Liabilities
=24074.3198407/15923.784245
=1.51184665

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=25845.9561186/14103.5527403
=1.83258478

Statoil ASA's current ratio of this year was 1.51184665. Statoil ASA's current ratio of last year was 1.83258478. ==> 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.

Statoil ASA's number of shares in issue this year was 3207. Statoil ASA's number of shares in issue last year was 3189. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=13922.2952994/41658.5835389
=0.33419992

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=20711.3419023/54006.9347514
=0.38349412

Statoil ASA's gross margin of this year was 0.33419992. Statoil ASA's gross margin of last year was 0.38349412. ==> 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 (Dec15)
=41658.5835389/100745.432847
=0.41350344

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=54006.9347514/107601.65369
=0.50191547

Statoil ASA's asset turnover of this year was 0.41350344. Statoil ASA's asset turnover of last year was 0.50191547. ==> 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
=0+1+1+1+0+0+0+0+0
=3

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

Statoil ASA has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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 local exchange's currency.

Statoil ASA Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1111111100
Question 2 1111111111
Question 3 0001100001
Question 4 1111111111
Question 5 0101110000
Question 6 0011001010
Question 7 1101001010
Question 8 0110100100
Question 9 0001100000
F-score 4658745443

Statoil ASA Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 1100000000
Question 2 1111111111
Question 3 1000001111
Question 4 1111111111
Question 5 0000001010
Question 6 1011111000
Question 7 1011111000
Question 8 0100000000
Question 9 0000000000
F-score 6444446343
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