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Icon PLC (NAS:ICLR)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

Icon PLC has an F-score of 6 indicating the company's financial situation is typical for a stable company.

ICLR' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 6

4
8

During the past 13 years, the highest Piotroski F-Score of Icon PLC was 8. The lowest was 4. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 33.48 + 36.195 + 40.783 + 50.316 = $161 Mil.
Cash Flow from Operations was 97.421 + 38.66 + -54.916 + 110.986 = $192 Mil.
Revenue was 345.24 + 349.634 + 376.02 + 387.589 = $1,458 Mil.
Gross Profit was 130.085 + 133.494 + 148.832 + 157.626 = $570 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(1362.068 + 1442.46 + 1484.541 + 1525.74 + 1572.726) / 5 = $1477.507 Mil.
Total Assets at the begining of this year (Sep13) was $1,362 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $860 Mil.
Total Current Liabilities was $536 Mil.
Net Income was 20.747 + 19.045 + 22.479 + 27.808 = $90 Mil.

Revenue was 300.164 + 316.789 + 334.219 + 339.81 = $1,291 Mil.
Gross Profit was 108.157 + 114.428 + 119.988 + 126.144 = $469 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(1135.229 + 1202.108 + 1231.22 + 1293.122 + 1362.068) / 5 = $1244.7494 Mil.
Total Assets at the begining of last year (Sep12) was $1,135 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $775 Mil.
Total Current Liabilities was $476 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.

Icon PLC's current net income (TTM) was 161. ==> 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.

Icon PLC's current cash flow from operations (TTM) was 192. ==> 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)/Total Assets at the Beginning of This Year (Sep13)
=160.774/1362.068
=0.11803669

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=90.079/1135.229
=0.07934875

Icon PLC's return on assets of this year was 0.11803669. Icon PLC's return on assets of last year was 0.07934875. ==> 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.

Icon PLC's current net income (TTM) was 161. Icon PLC's current cash flow from operations (TTM) was 192. ==> 192 > 161 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=0/1477.507
=0

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=0/1244.7494
=0

Icon PLC's gearing of this year was 0. Icon PLC's gearing of last year was 0. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=859.903/536.176
=1.60377003

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=775.378/475.669
=1.6300789

Icon PLC's current ratio of this year was 1.60377003. Icon PLC's current ratio of last year was 1.6300789. ==> 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.

Icon PLC's number of shares in issue this year was 63.4. Icon PLC's number of shares in issue last year was 62.5. ==> 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
=570.037/1458.483
=0.3908424

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=468.717/1290.982
=0.36307013

Icon PLC's gross margin of this year was 0.3908424. Icon PLC's gross margin of last year was 0.36307013. ==> 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 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 (Sep13)
=1458.483/1362.068
=1.07078575

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=1290.982/1135.229
=1.13719963

Icon PLC's asset turnover of this year was 1.07078575. Icon PLC's asset turnover of last year was 1.13719963. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

Icon PLC 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


Historical Data

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

Icon PLC Annual Data

May04May05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0011000011
Q4 1110111011
Q5 1010111111
Q6 1100011001
Q7 0000010010
Q8 0001000011
Q9 0011000111
F-score 5465465488

Icon PLC Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0011111111
Q4 1111111101
Q5 1111111111
Q6 0000111110
Q7 1110000000
Q8 0011111111
Q9 0111111100
F-score 5687888866
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