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Icon PLC (NAS:ICLR)
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

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

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

2
7

During the past 13 years, the highest Piotroski F-Score of Icon PLC was 7. 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 33.48 + 27.808 + 22.479 + 19.045 = $103 Mil.
Cash Flow from Operations was 97.421 + 43.589 + 10.846 + 69.371 = $221 Mil.
Revenue was 450.062 + 445.598 + 334.219 + 316.789 = $1,547 Mil.
Gross Profit was 345.24 + 339.81 + 119.988 + 114.428 = $919 Mil.
Total Assets at the begining of this year (Dec12) was $1,202 Mil.
Total Assets was $1,442 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $853 Mil.
Total Current Liabilities was $501 Mil.
Net Income was 20.747 + 17.738 + 7.964 + 8.971 = $55 Mil.

Revenue was 406.353 + 374.965 + 277.007 + 252.333 = $1,311 Mil.
Gross Profit was 300.164 + 285.502 + 96.88 + 90.049 = $773 Mil.
Total Assets at the begining of last year (Dec11) was $1,028 Mil.
Total Assets was $1,202 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $664 Mil.
Total Current Liabilities was $413 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 was 103. ==> 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 was 221. ==> 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 (Dec12)
=102.812/1202.108
=0.08552643

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=55.42/1027.517
=0.05393585

Icon PLC's return on assets of this year was 0.08552643. Icon PLC's return on assets of last year was 0.05393585. ==> 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 was 103. Icon PLC's current cash flow from operations was 221. ==> 221 > 103 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=0/1442.46
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/1202.108
=0

Icon PLC's gearing of this year was 0. Icon PLC's gearing of last year was 0. ==> Last year is lower ==> 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)=Total Current Assets/Total Current Liabilities
=853.428/501.169
=1.70287468

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=663.748/413.422
=1.60549753

Icon PLC's current ratio of this year was 1.70287468. Icon PLC's current ratio of last year was 1.60549753. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Icon PLC's number of shares in issue this year was 63.1. Icon PLC's number of shares in issue last year was 60.6. ==> There is more 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
=919.466/1546.668
=0.59448182

Gross Margin (Last Year)=Gross Profit/Revenue
=772.595/1310.658
=0.58947109

Icon PLC's gross margin of this year was 0.59448182. Icon PLC's gross margin of last year was 0.58947109. ==> This year's gross margin is higher. ==> Score 1.

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 (Dec12)
=1546.668/1202.108
=1.28662982

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=1310.658/1027.517
=1.27555846

Icon PLC's asset turnover of this year was 1.28662982. Icon PLC's asset turnover of last year was 1.27555846. ==> 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+0+1+0+1+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Icon PLC 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.

Icon PLC Annual Data

May04May05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0011000011
Q4 1110111011
Q5 0010010000
Q6 1100011001
Q7 0000010010
Q8 0001000011
Q9 0011001011
F-score 4465365277

Icon PLC Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 0000011111
Q4 0011111111
Q5 0000000000
Q6 0000000111
Q7 0011110000
Q8 0000111111
Q9 1000100001
F-score 3244665667
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