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Golub Capital BDC Inc (NAS:GBDC)
Piotroski F-Score
2 (As of Today)

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Golub Capital BDC Inc has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

GBDC' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 6
Current: 2

2
6

During the past 8 years, the highest Piotroski F-Score of Golub Capital BDC Inc was 6. The lowest was 2. And the median was 3.


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 (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 20.639 + 14.177 + 18.289 + 16.099 = $69.2 Mil.
Cash Flow from Operations was 23.017 + -74.566 + 12.836 + -17.365 = $-56.1 Mil.
Revenue was 30.5 + 30.762 + 32.106 + 34.503 = $127.9 Mil.
Gross Profit was 30.5 + 30.762 + 32.106 + 34.503 = $127.9 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(1633.426 + 1640.847 + 1665.015 + 1696.696 + 1756.509) / 5 = $1678.4986 Mil.
Total Assets at the begining of this year (Sep15) was $1,633.4 Mil.
Long-Term Debt was $0.5 Mil.
Total Current Assets was $1,756.1 Mil.
Total Current Liabilities was $877.2 Mil.
Net Income was 15.172 + 17.861 + 18.288 + 19.47 = $70.8 Mil.

Revenue was 27.545 + 28.461 + 30.41 + 33.552 = $120.0 Mil.
Gross Profit was 27.545 + 28.461 + 30.41 + 33.552 = $120.0 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(1443.388 + 1460.583 + 1503.603 + 1645.806 + 1633.426) / 5 = $1537.3612 Mil.
Total Assets at the begining of last year (Sep14) was $1,443.4 Mil.
Long-Term Debt was $0.4 Mil.
Total Current Assets was $1,633.0 Mil.
Total Current Liabilities was $822.2 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.

Golub Capital BDC Inc's current net income (TTM) was 69.2. ==> 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.

Golub Capital BDC Inc's current cash flow from operations (TTM) was -56.1. ==> Negative ==> Score 0.

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 (Sep15)
=69.204/1633.426
=0.04236739

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=70.791/1443.388
=0.04904502

Golub Capital BDC Inc's return on assets of this year was 0.04236739. Golub Capital BDC Inc's return on assets of last year was 0.04904502. ==> 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.

Golub Capital BDC Inc's current net income (TTM) was 69.2. Golub Capital BDC Inc's current cash flow from operations (TTM) was -56.1. ==> -56.1 <= 69.2 ==> CFROA <= ROA ==> Score 0.

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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=0.475/1678.4986
=0.00028299

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=0.355/1537.3612
=0.00023092

Golub Capital BDC Inc's gearing of this year was 0.00028299. Golub Capital BDC Inc's gearing of last year was 0.00023092. ==> 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: Sep16)=Total Current Assets/Total Current Liabilities
=1756.087/877.209
=2.00190263

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=1632.968/822.201
=1.98609342

Golub Capital BDC Inc's current ratio of this year was 2.00190263. Golub Capital BDC Inc's current ratio of last year was 1.98609342. ==> This year's current ratio is higher. ==> Score 1.

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.

Golub Capital BDC Inc's number of shares in issue this year was 51.9. Golub Capital BDC Inc's number of shares in issue last year was 49. ==> 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
=127.871/127.871
=1

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=119.968/119.968
=1

Golub Capital BDC Inc's gross margin of this year was 1. Golub Capital BDC Inc's gross margin of last year was 1. ==> 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 (Sep15)
=127.871/1633.426
=0.07828393

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=119.968/1443.388
=0.08311556

Golub Capital BDC Inc's asset turnover of this year was 0.07828393. Golub Capital BDC Inc's asset turnover of last year was 0.08311556. ==> 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+0+0+0+0+1+0+0+0
=2

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

Golub Capital BDC Inc has an F-score of 2. 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.

Golub Capital BDC Inc Annual Data

Sep11Sep12Sep13Sep14Sep15Sep16
Question 1 111111
Question 2 000000
Question 3 011000
Question 4 000000
Question 5 111100
Question 6 001001
Question 7 000000
Question 8 101010
Question 9 111000
F-score 446222

Golub Capital BDC Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1111111111
Question 2 0000000010
Question 3 0000001000
Question 4 0000000000
Question 5 1110000010
Question 6 0000101101
Question 7 0000000000
Question 8 0000011110
Question 9 0000000000
F-score 2221224342
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