Switch to:
InterOil Corp (NYSE:IOC)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

InterOil Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

IOC' s 10-Year Piotroski F-Score Range
Min: 1   Max: 7
Current: 6

1
7

During the past 13 years, the highest Piotroski F-Score of InterOil Corp was 7. The lowest was 1. And the median was 4.


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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 52.266 + 318.636 + -24.813 + -6.318 = $340 Mil.
Cash Flow from Operations was 4.96 + -15.244 + 61.143 + 26.14 = $77 Mil.
Revenue was 13.689 + 311.079 + 398.903 + 305.235 = $1,029 Mil.
Gross Profit was 13.689 + 40.365 + 48.631 + 31.052 = $134 Mil.
Total Assets at the begining of this year (Jun13) was $1,308 Mil.
Total Assets was $1,401 Mil.
Long-Term Debt was $65 Mil.
Total Current Assets was $596 Mil.
Total Current Liabilities was $93 Mil.
Net Income was -13.23 + 4.003 + 18.545 + 5.336 = $15 Mil.

Revenue was 0.831 + 350.331 + 356.439 + 326.865 = $1,034 Mil.
Gross Profit was 0.831 + 35.572 + 16.41 + 40.535 = $93 Mil.
Total Assets at the begining of last year (Jun12) was $1,158 Mil.
Total Assets was $1,308 Mil.
Long-Term Debt was $141 Mil.
Total Current Assets was $410 Mil.
Total Current Liabilities was $280 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.

InterOil Corp's current net income was 340. ==> 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.

InterOil Corp's current cash flow from operations was 77. ==> 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 (Jun13)
=339.771/1308.07
=0.25974986

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=14.654/1157.513
=0.0126599

InterOil Corp's return on assets of this year was 0.25974986. InterOil Corp's return on assets of last year was 0.0126599. ==> 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.

InterOil Corp's current net income was 340. InterOil Corp's current cash flow from operations was 77. ==> 77 =< 340 ==> CFROA =< ROA ==> Score 0.

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
=64.554/1400.601
=0.04609021

Gearing (Last Year)=Long-Term Debt/Total Assets
=140.527/1308.07
=0.10743079

InterOil Corp's gearing of this year was 0.04609021. InterOil Corp's gearing of last year was 0.10743079. ==> 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
=595.813/92.607
=6.4337793

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=409.843/279.714
=1.46522162

InterOil Corp's current ratio of this year was 6.4337793. InterOil Corp's current ratio of last year was 1.46522162. ==> 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.

InterOil Corp's number of shares in issue this year was 50.1. InterOil Corp's number of shares in issue last year was 48.7. ==> 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
=133.737/1028.906
=0.1299798

Gross Margin (Last Year)=Gross Profit/Revenue
=93.348/1034.466
=0.09023786

InterOil Corp's gross margin of this year was 0.1299798. InterOil Corp's gross margin of last year was 0.09023786. ==> 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 (Jun13)
=1028.906/1308.07
=0.78658329

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=1034.466/1157.513
=0.89369709

InterOil Corp's asset turnover of this year was 0.78658329. InterOil Corp's asset turnover of last year was 0.89369709. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+0+1+1+0+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

InterOil Corp has an F-score of 6 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.

InterOil Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 000010110
Q2 000110101
Q3 111110100
Q4 110111101
Q5 101011101
Q6 110111000
Q7 000000001
Q8 111010011
Q9 101101010
F-score 644574535

InterOil Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1001011011
Q2 1110100111
Q3 1110011011
Q4 0110100100
Q5 0010000111
Q6 0000010011
Q7 0100000100
Q8 0001111111
Q9 0001100000
F-score 3443443566
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)
Free 7-day Trial
FEEDBACK