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JB Hunt Transport Services Inc (NAS:JBHT)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

JB Hunt Transport Services Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

JBHT' 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 JB Hunt Transport Services Inc 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 91.864 + 68.664 + 93.408 + 102.414 = $356 Mil.
Cash Flow from Operations was 163.123 + 159.045 + 141.956 + 185.364 = $649 Mil.
Revenue was 1474.276 + 1406.908 + 1547.867 + 1601.156 = $6,030 Mil.
Gross Profit was 533.945 + 500.593 + 562.519 + 589.679 = $2,187 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(2712.434 + 2819.404 + 3115.725 + 3091.359 + 3158.918) / 5 = $2979.568 Mil.
Total Assets at the begining of this year (Sep13) was $2,712 Mil.
Long-Term Debt was $587 Mil.
Total Current Assets was $738 Mil.
Total Current Liabilities was $790 Mil.
Net Income was 83.977 + 73.349 + 87.697 + 89.472 = $334 Mil.

Revenue was 1338.136 + 1291.587 + 1382.858 + 1435.85 = $5,448 Mil.
Gross Profit was 480.6 + 460.478 + 504.367 + 514.981 = $1,960 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(2438.342 + 2464.641 + 2586.119 + 2656.316 + 2712.434) / 5 = $2571.5704 Mil.
Total Assets at the begining of last year (Sep12) was $2,438 Mil.
Long-Term Debt was $437 Mil.
Total Current Assets was $648 Mil.
Total Current Liabilities was $690 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.

JB Hunt Transport Services Inc's current net income (TTM) was 356. ==> 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.

JB Hunt Transport Services Inc's current cash flow from operations (TTM) was 649. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Sep13)
=356.35/2712.434
=0.13137647

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=334.495/2438.342
=0.13718133

JB Hunt Transport Services Inc's return on assets of this year was 0.13137647. JB Hunt Transport Services Inc's return on assets of last year was 0.13718133. ==> 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.

JB Hunt Transport Services Inc's current net income (TTM) was 356. JB Hunt Transport Services Inc's current cash flow from operations (TTM) was 649. ==> 649 > 356 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=587.074/2979.568
=0.19703326

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=437.474/2571.5704
=0.17011939

JB Hunt Transport Services Inc's gearing of this year was 0.19703326. JB Hunt Transport Services Inc's gearing of last year was 0.17011939. ==> Last year is lower than this year ==> Score 0.

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: Sep14)=Total Current Assets/Total Current Liabilities
=737.678/790.292
=0.93342461

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=648.032/690.338
=0.93871698

JB Hunt Transport Services Inc's current ratio of this year was 0.93342461. JB Hunt Transport Services Inc's current ratio of last year was 0.93871698. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

JB Hunt Transport Services Inc's number of shares in issue this year was 118.2. JB Hunt Transport Services Inc's number of shares in issue last year was 119.4. ==> There is smaller number of shares in issue this year, or the same. ==> 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: TTM)=Gross Profit/Revenue
=2186.736/6030.207
=0.36263034

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1960.426/5448.431
=0.35981478

JB Hunt Transport Services Inc's gross margin of this year was 0.36263034. JB Hunt Transport Services Inc's gross margin of last year was 0.35981478. ==> This year's gross margin is higher. ==> Score 1.

Q9. 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 (Sep13)
=6030.207/2712.434
=2.22317188

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=5448.431/2438.342
=2.23448187

JB Hunt Transport Services Inc's asset turnover of this year was 2.22317188. JB Hunt Transport Services Inc's asset turnover of last year was 2.23448187. ==> 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+0+0+1+1+0
=5

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

JB Hunt Transport Services Inc 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.

JB Hunt Transport Services Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1110001111
Q4 1111111111
Q5 1000101011
Q6 1100110100
Q7 0111101111
Q8 0001010000
Q9 1110101101
F-score 7765757767

JB Hunt Transport Services Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 1111101000
Q4 1111111111
Q5 1111111000
Q6 0100000110
Q7 1100111111
Q8 0000010111
Q9 1100001000
F-score 7855667665
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