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

Good Sign:

Piotroski F-Score of 8 is 8, 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 8. It is a good or high score, which usually indicates a very healthy situation.

ICLR' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 8

3
8

During the past 13 years, the highest Piotroski F-Score of Icon PLC was 8. The lowest was 3. 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 36.195 + 33.48 + 27.808 + 22.479 = $120 Mil.
Cash Flow from Operations was 38.66 + 97.421 + 43.589 + 10.846 = $191 Mil.
Revenue was 476.544 + 450.062 + 445.598 + 334.219 = $1,706 Mil.
Gross Profit was 133.494 + 345.24 + 339.81 + 119.988 = $939 Mil.
Total Assets at the begining of this year (Mar13) was $1,231 Mil.
Total Assets was $1,485 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $906 Mil.
Total Current Liabilities was $500 Mil.
Net Income was 19.045 + 20.747 + 17.738 + 7.964 = $65 Mil.

Revenue was 419.059 + 406.353 + 374.965 + 277.007 = $1,477 Mil.
Gross Profit was 114.428 + 300.164 + 285.502 + 96.88 = $797 Mil.
Total Assets at the begining of last year (Mar12) was $1,126 Mil.
Total Assets was $1,231 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $656 Mil.
Total Current Liabilities was $427 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 120. ==> 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 191. ==> 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)
=119.962/1231.22
=0.09743344

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=65.494/1125.506
=0.05819072

Icon PLC's return on assets of this year was 0.09743344. Icon PLC's return on assets of last year was 0.05819072. ==> 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 120. Icon PLC's current cash flow from operations was 191. ==> 191 > 120 ==> 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
=0/1484.541
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/1231.22
=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)=Total Current Assets/Total Current Liabilities
=905.702/499.779
=1.81220499

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=655.738/427.398
=1.53425613

Icon PLC's current ratio of this year was 1.81220499. Icon PLC's current ratio of last year was 1.53425613. ==> 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.

Icon PLC's number of shares in issue this year was 63.2. Icon PLC's number of shares in issue last year was 61.3. ==> 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
=938.532/1706.423
=0.54999962

Gross Margin (Last Year)=Gross Profit/Revenue
=796.974/1477.384
=0.53944946

Icon PLC's gross margin of this year was 0.54999962. Icon PLC's gross margin of last year was 0.53944946. ==> 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 (Mar13)
=1706.423/1231.22
=1.38596108

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=1477.384/1125.506
=1.31263983

Icon PLC's asset turnover of this year was 1.38596108. Icon PLC's asset turnover of last year was 1.31263983. ==> 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+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Icon PLC has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


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 1010011111
Q6 1100011001
Q7 0000010010
Q8 0001000011
Q9 0011001011
F-score 5465366388

Icon PLC Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 0000111111
Q4 0111111111
Q5 1111111111
Q6 0000001111
Q7 0111100000
Q8 0001111101
Q9 0001011011
F-score 3557778778
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