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Iconix Brand Group Inc (NAS:ICON)
Piotroski F-Score
4 (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

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

ICON' s 10-Year Piotroski F-Score Range
Min: 1   Max: 7
Current: 4

1
7

During the past 13 years, the highest Piotroski F-Score of Iconix Brand Group Inc was 7. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 26.146 + 59.768 + 35.319 + 33.779 = $155.0 Mil.
Cash Flow from Operations was 72.571 + 53.74 + 30.491 + 40.215 = $197.0 Mil.
Revenue was 105.264 + 116.138 + 118.943 + 113.75 = $454.1 Mil.
Gross Profit was 105.264 + 116.138 + 118.943 + 113.75 = $454.1 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(2851.656 + 2860.194 + 2846.046 + 2844.612 + 2848.233) / 5 = $2850.1482 Mil.
Total Assets at the begining of this year (Sep13) was $2,851.7 Mil.
Long-Term Debt was $1,340.7 Mil.
Total Current Assets was $369.9 Mil.
Total Current Liabilities was $142.6 Mil.
Net Income was 26.093 + 34.189 + 38.716 + 28.997 = $128.0 Mil.

Revenue was 85.131 + 105.062 + 115.125 + 107.175 = $412.5 Mil.
Gross Profit was 85.131 + 105.062 + 115.125 + 107.175 = $412.5 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(2028.648 + 2481.738 + 2827.905 + 2896.325 + 2851.656) / 5 = $2617.2544 Mil.
Total Assets at the begining of last year (Sep12) was $2,028.6 Mil.
Long-Term Debt was $1,374.2 Mil.
Total Current Assets was $466.4 Mil.
Total Current Liabilities was $153.0 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.

Iconix Brand Group Inc's current net income (TTM) was 155.0. ==> 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.

Iconix Brand Group Inc's current cash flow from operations (TTM) was 197.0. ==> 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)
=155.012/2851.656
=0.05435859

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=127.995/2028.648
=0.06309375

Iconix Brand Group Inc's return on assets of this year was 0.05435859. Iconix Brand Group Inc's return on assets of last year was 0.06309375. ==> 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.

Iconix Brand Group Inc's current net income (TTM) was 155.0. Iconix Brand Group Inc's current cash flow from operations (TTM) was 197.0. ==> 197.0 > 155.0 ==> 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
=1340.66/2850.1482
=0.47038256

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=1374.248/2617.2544
=0.52507238

Iconix Brand Group Inc's gearing of this year was 0.47038256. Iconix Brand Group Inc's gearing of last year was 0.52507238. ==> 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
=369.92/142.608
=2.59396387

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=466.41/152.971
=3.04900929

Iconix Brand Group Inc's current ratio of this year was 2.59396387. Iconix Brand Group Inc's current ratio of last year was 3.04900929. ==> 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.

Iconix Brand Group Inc's number of shares in issue this year was 58.5. Iconix Brand Group Inc's number of shares in issue last year was 57.8. ==> 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
=454.095/454.095
=1

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=412.493/412.493
=1

Iconix Brand Group Inc's gross margin of this year was 1. Iconix Brand Group Inc's gross margin of last year was 1. ==> 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 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)
=454.095/2851.656
=0.15923905

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=412.493/2028.648
=0.20333394

Iconix Brand Group Inc's asset turnover of this year was 0.15923905. Iconix Brand Group Inc's asset turnover of last year was 0.20333394. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

Iconix Brand 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


Historical Data

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

Iconix Brand Group Inc Annual Data

Jan04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0111111111
Q2 1111111111
Q3 0100011101
Q4 1001111111
Q5 1010111100
Q6 0010111011
Q7 0000100011
Q8 0100000000
Q9 0000011101
F-score 3443677657

Iconix Brand Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0000111100
Q4 1111111111
Q5 0000000111
Q6 1111111000
Q7 1111111110
Q8 0000000000
Q9 0000111000
F-score 5555777654
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