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Harbinger Group Inc (NYSE:HRG)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

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

Harbinger Group Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

HRG' s 10-Year Piotroski F-Score Range
Min: 1   Max: 8
Current: 4

1
8

During the past 7 years, the highest Piotroski F-Score of Harbinger Group Inc 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was -190.2 + -26.8 + -75.5 + 98.3 = $-194 Mil.
Cash Flow from Operations was 428.3 + -89.4 + 7.5 + 246.3 = $593 Mil.
Revenue was 1500.8 + 1510 + 1341.2 + 1599.4 = $5,951 Mil.
Gross Profit was 742.4 + 774.5 + 662 + 866.8 = $3,046 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(27365 + 27908.8 + 28764 + 29322.5 + 29885.2) / 5 = $28,649 Mil.
Total Assets was $29,885 Mil.
Long-Term Debt was $5,303 Mil.
Total Current Assets was $3,027 Mil.
Total Current Liabilities was $900 Mil.
Net Income was 173.1 + 74.1 + -33.3 + 103.6 = $318 Mil.

Revenue was 1196.8 + 1222.3 + 1411.1 + 1409.2 = $5,239 Mil.
Gross Profit was 644.1 + 640.2 + 737.4 + 684.1 = $2,706 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(24581.349 + 25200.4 + 26858.8 + 27716.7 + 27365) / 5 = $26,344 Mil.
Total Assets was $27,365 Mil.
Long-Term Debt was $4,554 Mil.
Total Current Assets was $5,093 Mil.
Total Current Liabilities was $843 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.

Harbinger Group Inc's current net income (ttm) was -194. ==> 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.

Harbinger Group Inc's current cash flow from operations (ttm) was 593. ==> 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
=-194.2/28649.1
=-0.00677857

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=317.5/26344.4498
=0.01205187

Harbinger Group Inc's return on assets of this year was -0.00677857. Harbinger Group Inc's return on assets of last year was 0.01205187. ==> 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.

Harbinger Group Inc's current net income (ttm) was -194. Harbinger Group Inc's current cash flow from operations (ttm) was 593. ==> 593 > -194 ==> 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
=5303.4/29885.2
=0.17745908

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=4554.3/27365
=0.16642792

Harbinger Group Inc's gearing of this year was 0.17745908. Harbinger Group Inc's gearing of last year was 0.16642792. ==> 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
=3027.4/899.9
=3.36415157

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=5093.2/843.4
=6.03889021

Harbinger Group Inc's current ratio of this year was 3.36415157. Harbinger Group Inc's current ratio of last year was 6.03889021. ==> 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.

Harbinger Group Inc's number of shares in issue this year was 178. Harbinger Group Inc's number of shares in issue last year was 205.2. ==> 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
=3045.7/5951.4
=0.51176194

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2705.8/5239.4
=0.51643318

Harbinger Group Inc's gross margin of this year was 0.51176194. Harbinger Group Inc's gross margin of last year was 0.51643318. ==> 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
=5951.4/28649.1
=0.20773427

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=5239.4/26344.4498
=0.1988806

Harbinger Group Inc's asset turnover of this year was 0.20773427. Harbinger Group Inc's asset turnover of last year was 0.1988806. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+0+1+0+0+1+0+1
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Harbinger Group Inc has an F-score of 4 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.

Harbinger Group Inc Annual Data

Sep95Sep96Sep97Sep98Sep11Sep12Sep13
Q1 110
Q2 111
Q3 010
Q4 111
Q5 010
Q6 010
Q7 010
Q8 110
Q9 111
F-score 593

Harbinger Group Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1011110000
Q2 1111111111
Q3 1000010000
Q4 1111111111
Q5 1110000000
Q6 1111110000
Q7 0010001101
Q8 1111110000
Q9 0000011111
F-score 7575574434
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