Switch to:
Intel Corp (NAS:INTC)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Intel Corp has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

INTC' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 3

3
9

During the past 13 years, the highest Piotroski F-Score of Intel Corp was 9. The lowest was 3. 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 local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 3613 + 2046 + 1330 + 3378 = $10,367 Mil.
Cash Flow from Operations was 5427 + 4055 + 3845 + 5758 = $19,085 Mil.
Revenue was 14914 + 13702 + 13533 + 15778 = $57,927 Mil.
Gross Profit was 9590 + 8130 + 7973 + 9983 = $35,676 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(98552 + 101459 + 105467 + 109831 + 112217) / 5 = $105505.2 Mil.
Total Assets at the begining of this year (Sep15) was $98,552 Mil.
Long-Term Debt was $24,043 Mil.
Total Current Assets was $36,216 Mil.
Total Current Liabilities was $20,093 Mil.
Net Income was 3661 + 1992 + 2706 + 3109 = $11,468 Mil.

Revenue was 14721 + 12781 + 13195 + 14465 = $55,162 Mil.
Gross Profit was 9621 + 7730 + 8248 + 9111 = $34,710 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(90616 + 91900 + 89566 + 90492 + 98552) / 5 = $92225.2 Mil.
Total Assets at the begining of last year (Sep14) was $90,616 Mil.
Long-Term Debt was $20,059 Mil.
Total Current Assets was $36,205 Mil.
Total Current Liabilities was $15,080 Mil.

Profitability

Question 1. 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 (TTM) was 10,367. ==> Positive ==> Score 1.

Question 2. 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 (TTM) was 19,085. ==> Positive ==> Score 1.

Question 3. 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 (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=11468/90616
=0.12655602

Intel Corp's return on assets of this year was 0.1051932. Intel Corp's return on assets of last year was 0.12655602. ==> Last year is higher ==> Score 0.

Question 4. 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 (TTM) was 10,367. Intel Corp's current cash flow from operations (TTM) was 19,085. ==> 19,085 > 10,367 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=24043/105505.2
=0.2278845

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=20059/92225.2
=0.21750021

Intel Corp's gearing of this year was 0.2278845. Intel Corp's gearing of last year was 0.21750021. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Sep16)=Total Current Assets/Total Current Liabilities
=36216/20093
=1.80241875

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=36205/15080
=2.40086207

Intel Corp's current ratio of this year was 1.80241875. Intel Corp's current ratio of last year was 2.40086207. ==> Last year's current ratio is higher ==> Score 0.

Question 7. 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.

Intel Corp's number of shares in issue this year was 4877. Intel Corp's number of shares in issue last year was 4876. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. 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
=35676/57927
=0.61587861

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=34710/55162
=0.62923752

Intel Corp's gross margin of this year was 0.61587861. Intel Corp's gross margin of last year was 0.62923752. ==> Last year's gross margin is higher ==> Score 0.

Question 9. 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 (Sep15)
=57927/98552
=0.58778107

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=55162/90616
=0.60874459

Intel Corp's asset turnover of this year was 0.58778107. Intel Corp's asset turnover of last year was 0.60874459. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+0+0+0
=3

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

Intel Corp has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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 local exchange's currency.

Intel Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0100100010
Question 4 1111111111
Question 5 1110100110
Question 6 0101101001
Question 7 1011011111
Question 8 0111100010
Question 9 0101110000
F-score 5867855575

Intel Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1111111111
Question 2 1111111111
Question 3 0011110100
Question 4 1111111111
Question 5 1111100000
Question 6 0000011000
Question 7 0111111110
Question 8 1111110000
Question 9 0000010110
F-score 5677785653
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK