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Goldcorp Inc (NYSE:GG)
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 = 8 or 9
Bad or low score = 0 or 1

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

GG' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 2

2
9

During the past 13 years, the highest Piotroski F-Score of Goldcorp Inc was 9. The lowest was 2. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 5 + -1089 + 98 + 181 = $-805 Mil.
Cash Flow from Operations was 274 + 307 + 273 + 275 = $1,129 Mil.
Revenue was 929 + 854 + 898 + 906 = $3,587 Mil.
Gross Profit was 234 + 287 + 228 + 221 = $970 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(30029 + 29933 + 29564 + 30175 + 30618) / 5 = $30,064 Mil.
Total Assets was $30,618 Mil.
Long-Term Debt was $2,471 Mil.
Total Current Assets was $2,812 Mil.
Total Current Liabilities was $2,009 Mil.
Net Income was 498 + 504 + 309 + -1934 = $-623 Mil.

Revenue was 1282 + 1086 + 964 + 858 = $4,190 Mil.
Gross Profit was 601 + 441 + 344 + 173 = $1,559 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(29874 + 30622 + 30979 + 32632 + 30029) / 5 = $30,827 Mil.
Total Assets was $30,029 Mil.
Long-Term Debt was $2,287 Mil.
Total Current Assets was $2,994 Mil.
Total Current Liabilities was $1,179 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.

Goldcorp Inc's current net income (ttm) was -805. ==> Negative ==> Score 0.

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.

Goldcorp Inc's current cash flow from operations (ttm) was 1,129. ==> 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 Jun13 to Jun14
=-805/30063.8
=-0.02677639

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=-623/30827.2
=-0.02020943

Goldcorp Inc's return on assets of this year was -0.02677639. Goldcorp Inc's return on assets of last year was -0.02020943. ==> 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.

Goldcorp Inc's current net income (ttm) was -805. Goldcorp Inc's current cash flow from operations (ttm) was 1,129. ==> 1,129 > -805 ==> 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: Jun14)=Long-Term Debt/Total Assets
=2471/30618
=0.08070416

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=2287/30029
=0.07615971

Goldcorp Inc's gearing of this year was 0.08070416. Goldcorp Inc's gearing of last year was 0.07615971. ==> 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: Jun14)=Total Current Assets/Total Current Liabilities
=2812/2009
=1.39970134

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=2994/1179
=2.5394402

Goldcorp Inc's current ratio of this year was 1.39970134. Goldcorp Inc's current ratio of last year was 2.5394402. ==> Last year's current ratio is higher ==> Score 0.

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.

Goldcorp Inc's number of shares in issue this year was 813. Goldcorp Inc's number of shares in issue last year was 812. ==> 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
=970/3587
=0.27042096

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1559/4190
=0.37207637

Goldcorp Inc's gross margin of this year was 0.27042096. Goldcorp Inc's gross margin of last year was 0.37207637. ==> 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 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 Jun13 to Jun14
=3587/30063.8
=0.11931293

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=4190/30827.2
=0.13591893

Goldcorp Inc's asset turnover of this year was 0.11931293. Goldcorp Inc's asset turnover of last year was 0.13591893. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+0+1+0+0+0+0+0
=2

Good or high score = 8 or 9

Bad or low score = 0 or 1

Goldcorp 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, 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.

Goldcorp Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111110
Q2 1111111111
Q3 0111101000
Q4 1111010111
Q5 1100101100
Q6 1001010100
Q7 0000000001
Q8 0100011100
Q9 0111111100
F-score 5756566733

Goldcorp Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111100000
Q2 1111111111
Q3 0000000000
Q4 1111111111
Q5 0000000010
Q6 1000000000
Q7 0001010100
Q8 1111100000
Q9 1000000000
F-score 6445432332
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