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Jarden Corporation (NYSE:JAH)
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

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

JAH' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 6

3
8

During the past 13 years, the highest Piotroski F-Score of Jarden Corporation 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 37 + 94.9 + 76.4 + -4.4 = $204 Mil.
Cash Flow from Operations was 605.3 + 104.6 + 164.8 + -206.2 = $669 Mil.
Revenue was 2215.6 + 1800.8 + 1758.8 + 1580.7 = $7,356 Mil.
Gross Profit was 634.5 + 523.2 + 513.5 + 443.5 = $2,115 Mil.
Total Assets at the begining of this year (Dec12) was $7,711 Mil.
Total Assets was $10,096 Mil.
Long-Term Debt was $4,087 Mil.
Total Current Assets was $4,084 Mil.
Total Current Liabilities was $2,039 Mil.
Net Income was 48.7 + 76.9 + 83.2 + 35.1 = $244 Mil.

Revenue was 1819.2 + 1705.9 + 1675.6 + 1495.4 = $6,696 Mil.
Gross Profit was 507.4 + 501 + 496.4 + 419.6 = $1,924 Mil.
Total Assets at the begining of last year (Dec11) was $7,117 Mil.
Total Assets was $7,711 Mil.
Long-Term Debt was $3,293 Mil.
Total Current Assets was $3,810 Mil.
Total Current Liabilities was $1,729 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.

Jarden Corporation's current net income was 204. ==> 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.

Jarden Corporation's current cash flow from operations was 669. ==> 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 (Dec12)
=203.9/7710.6
=0.02644412

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=243.9/7116.7
=0.0342715

Jarden Corporation's return on assets of this year was 0.02644412. Jarden Corporation's return on assets of last year was 0.0342715. ==> 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.

Jarden Corporation's current net income was 204. Jarden Corporation's current cash flow from operations was 669. ==> 669 > 204 ==> 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
=4087.3/10096.1
=0.40483949

Gearing (Last Year)=Long-Term Debt/Total Assets
=3293.4/7710.6
=0.42712629

Jarden Corporation's gearing of this year was 0.40483949. Jarden Corporation's gearing of last year was 0.42712629. ==> 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
=4083.5/2039.4
=2.0023046

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=3810.4/1728.7
=2.20419969

Jarden Corporation's current ratio of this year was 2.0023046. Jarden Corporation's current ratio of last year was 2.20419969. ==> 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.

Jarden Corporation's number of shares in issue this year was 128.3. Jarden Corporation's number of shares in issue last year was 113.7. ==> 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
=2114.7/7355.9
=0.28748352

Gross Margin (Last Year)=Gross Profit/Revenue
=1924.4/6696.1
=0.28739117

Jarden Corporation's gross margin of this year was 0.28748352. Jarden Corporation's gross margin of last year was 0.28739117. ==> 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 (Dec12)
=7355.9/7710.6
=0.95399839

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=6696.1/7116.7
=0.94089957

Jarden Corporation's asset turnover of this year was 0.95399839. Jarden Corporation's asset turnover of last year was 0.94089957. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Jarden Corporation 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.

Jarden Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111011111
Q2 1111111111
Q3 0100010110
Q4 1111111111
Q5 1110010001
Q6 0010100100
Q7 0000000111
Q8 0001100111
Q9 0101001001
F-score 4655454767

Jarden Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1110010000
Q4 1111111111
Q5 0011000011
Q6 1100001110
Q7 1111111110
Q8 1111111111
Q9 1000001101
F-score 8776567776
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