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Huntsman Corp (NYSE:HUN)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Huntsman Corp has an F-score of 7 indicating the company's financial situation is typical for a stable company.

HUN' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 7

2
9

During the past 13 years, the highest Piotroski F-Score of Huntsman Corp was 9. The lowest was 2. 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 own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 54 + 41 + 64 + 47 = $206 Mil.
Cash Flow from Operations was -67 + 320 + 390 + 72 = $715 Mil.
Revenue was 2755 + 2705 + 2842 + 2830 = $11,132 Mil.
Gross Profit was 450 + 446 + 507 + 451 = $1,854 Mil.
Total Assets at the begining of this year (Mar13) was $8,719 Mil.
Total Assets was $9,227 Mil.
Long-Term Debt was $3,621 Mil.
Total Current Assets was $4,228 Mil.
Total Current Liabilities was $2,215 Mil.
Net Income was -24 + -41 + 117 + 124 = $176 Mil.

Revenue was 2702 + 2619 + 2741 + 2914 = $10,976 Mil.
Gross Profit was 349 + 420 + 537 + 527 = $1,833 Mil.
Total Assets at the begining of last year (Mar12) was $8,953 Mil.
Total Assets was $8,719 Mil.
Long-Term Debt was $3,489 Mil.
Total Current Assets was $4,003 Mil.
Total Current Liabilities was $2,123 Mil.

Profitability

Q1. 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.

Huntsman Corp's current net income was 206. ==> Positive ==> Score 1.

Q2. 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.

Huntsman Corp's current cash flow from operations was 715. ==> 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/Total Assets at the beginning of this year (Mar13)
=206/8719
=0.02362656

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=176/8953
=0.01965822

Huntsman Corp's return on assets of this year was 0.02362656. Huntsman Corp's return on assets of last year was 0.01965822. ==> This year is higher. ==> Score 1.

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.

Huntsman Corp's current net income was 206. Huntsman Corp's current cash flow from operations was 715. ==> 715 > 206 ==> CFROA > ROA ==> Score 1.

Funding

Q5. 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)=Long-Term Debt/Total Assets
=3621/9227
=0.39243524

Gearing (Last Year)=Long-Term Debt/Total Assets
=3489/8719
=0.40016057

Huntsman Corp's gearing of this year was 0.39243524. Huntsman Corp's gearing of last year was 0.40016057. ==> 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)=Total Current Assets/Total Current Liabilities
=4228/2215
=1.90880361

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=4003/2123
=1.88553933

Huntsman Corp's current ratio of this year was 1.90880361. Huntsman Corp's current ratio of last year was 1.88553933. ==> 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.

Huntsman Corp's number of shares in issue this year was 244.5. Huntsman Corp's number of shares in issue last year was 239. ==> 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)=Gross Profit/Revenue
=1854/11132
=0.16654689

Gross Margin (Last Year)=Gross Profit/Revenue
=1833/10976
=0.16700073

Huntsman Corp's gross margin of this year was 0.16654689. Huntsman Corp's gross margin of last year was 0.16700073. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Mar13)
=11132/8719
=1.27675192

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=10976/8953
=1.22595778

Huntsman Corp's asset turnover of this year was 1.27675192. Huntsman Corp's asset turnover of last year was 1.22595778. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+0+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Huntsman Corp has an F-score of 7 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


Historical Data

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

Huntsman Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0010111111
Q2 1110110111
Q3 1110100110
Q4 1111110111
Q5 0110011010
Q6 1000110101
Q7 0101001010
Q8 1100011110
Q9 0011101110
F-score 5663665784

Huntsman Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 1111100001
Q4 1111111111
Q5 0101111101
Q6 1111000011
Q7 0110010000
Q8 1111100000
Q9 1101101001
F-score 7978755447
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