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Globecomm Systems, Inc. (NAS:GCOM)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

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

Globecomm Systems, Inc. has an F-score of 6 indicating the company's financial situation is typical for a stable company.

GCOM' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Sep13) TTM:Last Year (Sep12) TTM:
Net Income was 3.829 + 4.176 + 4.558 + 0.155 = $12.7 Mil.
Cash Flow from Operations was 7.959 + 2.162 + 19.052 + 9.617 = $38.8 Mil.
Revenue was 79.739 + 78.067 + 80.645 + 57.262 = $295.7 Mil.
Gross Profit was 19.253 + 20.221 + 19.963 + 15.046 = $74.5 Mil.
Average Total Assets from the begining of this year (Sep12)
to the end of this year (Sep13) was
(307.804 + 312.086 + 309.752 + 308.241 + 312.625) / 5 = $310.1 Mil.
Total Assets was $312.6 Mil.
Long-Term Debt was $7.0 Mil.
Total Current Assets was $171.4 Mil.
Total Current Liabilities was $45.5 Mil.
Net Income was 9.25 + 2.902 + 7.084 + 2.676 = $21.9 Mil.

Revenue was 95.19 + 110.929 + 104.812 + 81.163 = $392.1 Mil.
Gross Profit was 22.999 + 23.7 + 21.186 + 17.087 = $85.0 Mil.
Average Total Assets from the begining of last year (Sep11)
to the end of last year (Sep12) was
(294.44 + 311.175 + 312.707 + 310.067 + 307.804) / 5 = $307.2 Mil.
Total Assets was $307.8 Mil.
Long-Term Debt was $13.1 Mil.
Total Current Assets was $170.7 Mil.
Total Current Liabilities was $58.7 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Globecomm Systems, Inc.'s current net income (ttm) was 12.7. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Globecomm Systems, Inc.'s current cash flow from operations (ttm) was 38.8. ==> 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)/Average Total Assets from Sep12 to Sep13
=12.718/310.1016
=0.04101236

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Sep11 to Sep12
=21.912/307.2386
=0.07131916

Globecomm Systems, Inc.'s return on assets of this year was 0.04101236. Globecomm Systems, Inc.'s return on assets of last year was 0.07131916. ==> 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.

Globecomm Systems, Inc.'s current net income (ttm) was 12.7. Globecomm Systems, Inc.'s current cash flow from operations (ttm) was 38.8. ==> 38.8 > 12.7 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep13)=Long-Term Debt/Total Assets
=6.95/312.625
=0.02223111

Gearing (Last Year: Sep12)=Long-Term Debt/Total Assets
=13.05/307.804
=0.04239711

Globecomm Systems, Inc.'s gearing of this year was 0.02223111. Globecomm Systems, Inc.'s gearing of last year was 0.04239711. ==> This year is lower or equal to last year. ==> 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: Sep13)=Total Current Assets/Total Current Liabilities
=171.376/45.453
=3.77040019

Current Ratio (Last Year: Sep12)=Total Current Assets/Total Current Liabilities
=170.705/58.662
=2.90997579

Globecomm Systems, Inc.'s current ratio of this year was 3.77040019. Globecomm Systems, Inc.'s current ratio of last year was 2.90997579. ==> 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.

Globecomm Systems, Inc.'s number of shares in issue this year was 23.6. Globecomm Systems, Inc.'s number of shares in issue last year was 22.9. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=74.483/295.713
=0.25187597

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=84.972/392.094
=0.21671334

Globecomm Systems, Inc.'s gross margin of this year was 0.25187597. Globecomm Systems, Inc.'s gross margin of last year was 0.21671334. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout 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)/Average Total Assets from Sep12 to Sep13
=295.713/310.1016
=0.95360037

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Sep11 to Sep12
=392.094/307.2386
=1.2761873

Globecomm Systems, Inc.'s asset turnover of this year was 0.95360037. Globecomm Systems, Inc.'s asset turnover of last year was 1.2761873. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+1+0+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Globecomm Systems, Inc. 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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Globecomm Systems, Inc. Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Q1 0111111111
Q2 1001111111
Q3 1101101110
Q4 1001011111
Q5 1110110011
Q6 1010110011
Q7 0000000000
Q8 1101101101
Q9 1101001111
F-score 7536656677

Globecomm Systems, Inc. Quarterly Data

Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13
Q1 1111111111
Q2 1111111111
Q3 0111110000
Q4 1111111111
Q5 0000111111
Q6 0001111111
Q7 0000000000
Q8 1110000011
Q9 1111111000
F-score 4666775566
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