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J.B. Hunt Transport Services, Inc. (NAS:JBHT)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

J.B. Hunt Transport Services, Inc. has an F-score of 7 indicating the company's financial situation is typical for a stable company.

JBHT' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 7

4
8

During the past 13 years, the highest Piotroski F-Score of J.B. Hunt Transport Services, Inc. was 8. 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 91.864 + 89.472 + 87.697 + 73.349 = $342 Mil.
Cash Flow from Operations was 163.123 + 117.657 + 86.812 + 206.759 = $574 Mil.
Revenue was 1474.276 + 1435.85 + 1382.858 + 1291.587 = $5,585 Mil.
Gross Profit was 533.945 + 514.981 + 504.367 + 485.58 = $2,039 Mil.
Total Assets at the begining of this year (Dec12) was $2,465 Mil.
Total Assets was $2,819 Mil.
Long-Term Debt was $458 Mil.
Total Current Assets was $680 Mil.
Total Current Liabilities was $712 Mil.
Net Income was 83.977 + 78.241 + 80.451 + 67.684 = $310 Mil.

Revenue was 1338.136 + 1295.792 + 1255.13 + 1165.922 = $5,055 Mil.
Gross Profit was 480.6 + 461.105 + 455.662 + 449.44 = $1,847 Mil.
Total Assets at the begining of last year (Dec11) was $2,267 Mil.
Total Assets was $2,465 Mil.
Long-Term Debt was $585 Mil.
Total Current Assets was $555 Mil.
Total Current Liabilities was $503 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.

J.B. Hunt Transport Services, Inc.'s current net income was 342. ==> 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.

J.B. Hunt Transport Services, Inc.'s current cash flow from operations was 574. ==> 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)
=342.382/2464.641
=0.13891759

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=310.353/2267.332
=0.13688026

J.B. Hunt Transport Services, Inc.'s return on assets of this year was 0.13891759. J.B. Hunt Transport Services, Inc.'s return on assets of last year was 0.13688026. ==> 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.

J.B. Hunt Transport Services, Inc.'s current net income was 342. J.B. Hunt Transport Services, Inc.'s current cash flow from operations was 574. ==> 574 > 342 ==> 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
=458.417/2819.404
=0.16259358

Gearing (Last Year)=Long-Term Debt/Total Assets
=585.347/2464.641
=0.23749787

J.B. Hunt Transport Services, Inc.'s gearing of this year was 0.16259358. J.B. Hunt Transport Services, Inc.'s gearing of last year was 0.23749787. ==> 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
=680.203/712.296
=0.95494429

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=554.532/502.76
=1.10297557

J.B. Hunt Transport Services, Inc.'s current ratio of this year was 0.95494429. J.B. Hunt Transport Services, Inc.'s current ratio of last year was 1.10297557. ==> 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.

J.B. Hunt Transport Services, Inc.'s number of shares in issue this year was 119. J.B. Hunt Transport Services, Inc.'s number of shares in issue last year was 120. ==> There is the same number of shares in issue this year, or fewer. ==> Score 1.

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
=2038.873/5584.571
=0.36509035

Gross Margin (Last Year)=Gross Profit/Revenue
=1846.807/5054.98
=0.36534408

J.B. Hunt Transport Services, Inc.'s gross margin of this year was 0.36509035. J.B. Hunt Transport Services, Inc.'s gross margin of last year was 0.36534408. ==> Last year's gross margin is higher ==> Score 0.

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)
=5584.571/2464.641
=2.26587604

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=5054.98/2267.332
=2.22948382

J.B. Hunt Transport Services, Inc.'s asset turnover of this year was 2.26587604. J.B. Hunt Transport Services, Inc.'s asset turnover of last year was 2.22948382. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+1+0+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

J.B. Hunt Transport Services, Inc. has an F-score of 7 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.

J.B. Hunt Transport Services, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1110001111
Q4 1111111111
Q5 0000101011
Q6 1100110100
Q7 0111101111
Q8 0001010000
Q9 1110101101
F-score 6765757767

J.B. Hunt Transport Services, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1111111101
Q4 1111111111
Q5 0011111111
Q6 1100100000
Q7 1111100111
Q8 0000000110
Q9 1111100001
F-score 7777855767
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