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Intel Corp (NAS:INTC)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

Intel Corp has an F-score of 5 indicating the company's financial situation is typical for a stable company.

INTC' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 5

4
9

During the past 13 years, the highest Piotroski F-Score of Intel Corp was 9. The lowest was 4. 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 1930 + 2625 + 2950 + 2000 = $9,505 Mil.
Cash Flow from Operations was 3501 + 6038 + 5731 + 4722 = $19,992 Mil.
Revenue was 12764 + 13834 + 13483 + 12811 = $52,892 Mil.
Gross Profit was 7613 + 8571 + 8414 + 7470 = $32,068 Mil.
Total Assets at the begining of this year (Mar13) was $83,083 Mil.
Total Assets was $91,932 Mil.
Long-Term Debt was $13,172 Mil.
Total Current Assets was $30,554 Mil.
Total Current Liabilities was $13,552 Mil.
Net Income was 2045 + 2468 + 2972 + 2827 = $10,312 Mil.

Revenue was 12580 + 13477 + 13457 + 13501 = $53,015 Mil.
Gross Profit was 7066 + 7817 + 8515 + 8554 = $31,952 Mil.
Total Assets at the begining of last year (Mar12) was $71,817 Mil.
Total Assets was $83,083 Mil.
Long-Term Debt was $13,143 Mil.
Total Current Assets was $28,677 Mil.
Total Current Liabilities was $11,798 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.

Intel Corp's current net income was 9,505. ==> 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.

Intel Corp's current cash flow from operations was 19,992. ==> 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)
=9505/83083
=0.11440367

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=10312/71817
=0.14358717

Intel Corp's return on assets of this year was 0.11440367. Intel Corp's return on assets of last year was 0.14358717. ==> 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.

Intel Corp's current net income was 9,505. Intel Corp's current cash flow from operations was 19,992. ==> 19,992 > 9,505 ==> 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
=13172/91932
=0.14327982

Gearing (Last Year)=Long-Term Debt/Total Assets
=13143/83083
=0.15819121

Intel Corp's gearing of this year was 0.14327982. Intel Corp's gearing of last year was 0.15819121. ==> This year is lower. ==> 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
=30554/13552
=2.25457497

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=28677/11798
=2.43066621

Intel Corp's current ratio of this year was 2.25457497. Intel Corp's current ratio of last year was 2.43066621. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Intel Corp's number of shares in issue this year was 5117. Intel Corp's number of shares in issue last year was 5080. ==> 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
=32068/52892
=0.60629207

Gross Margin (Last Year)=Gross Profit/Revenue
=31952/53015
=0.60269735

Intel Corp's gross margin of this year was 0.60629207. Intel Corp's gross margin of last year was 0.60269735. ==> 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)
=52892/83083
=0.6366164

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=53015/71817
=0.73819569

Intel Corp's asset turnover of this year was 0.6366164. Intel Corp's asset turnover of last year was 0.73819569. ==> 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+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Intel Corp has an F-score of 5 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.

Intel Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1101001000
Q4 1111111111
Q5 1011101001
Q6 0001011010
Q7 1110110111
Q8 1101111000
Q9 1101011100
F-score 8758678555

Intel Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 0000000000
Q4 1111111111
Q5 0001000011
Q6 0110111100
Q7 1111111100
Q8 0011000001
Q9 1000000000
F-score 5566555545
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