Switch to:
GuruFocus has detected 1 Warning Sign with JetBlue Airways Corp $JBLU.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
JetBlue Airways Corp (NAS:JBLU)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

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

JetBlue Airways Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

JBLU' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of JetBlue Airways 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 (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was 199 + 180 + 199 + 180 = $758 Mil.
Cash Flow from Operations was 585 + 422 + 310 + 315 = $1,632 Mil.
Revenue was 1616 + 1643 + 1732 + 1641 = $6,632 Mil.
Gross Profit was 1153 + 1109 + 1160 + 1106 = $4,528 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(8644 + 9062 + 9458 + 9579 + 9487) / 5 = $9246 Mil.
Total Assets at the begining of this year (Dec15) was $8,644 Mil.
Long-Term Debt was $1,195 Mil.
Total Current Assets was $1,567 Mil.
Total Current Liabilities was $2,223 Mil.
Net Income was 137 + 152 + 198 + 190 = $677 Mil.

Revenue was 1523 + 1612 + 1687 + 1594 = $6,416 Mil.
Gross Profit was 961 + 994 + 1092 + 1067 = $4,114 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(7839 + 8304 + 8317 + 8594 + 8644) / 5 = $8339.6 Mil.
Total Assets at the begining of last year (Dec14) was $7,839 Mil.
Long-Term Debt was $1,379 Mil.
Total Current Assets was $1,373 Mil.
Total Current Liabilities was $2,275 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.

JetBlue Airways Corp's current net income (TTM) was 758. ==> 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.

JetBlue Airways Corp's current cash flow from operations (TTM) was 1,632. ==> 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.

JetBlue Airways Corp's return on assets of this year was 0.08769088. JetBlue Airways Corp's return on assets of last year was 0.08636306. ==> This year is higher. ==> Score 1.

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.

JetBlue Airways Corp's current net income (TTM) was 758. JetBlue Airways Corp's current cash flow from operations (TTM) was 1,632. ==> 1,632 > 758 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=1195/9246
=0.12924508

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=1379/8339.6
=0.16535565

JetBlue Airways Corp's gearing of this year was 0.12924508. JetBlue Airways Corp's gearing of last year was 0.16535565. ==> This year is lower or equal to last year. ==> Score 1.

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: Dec16)=Total Current Assets/Total Current Liabilities
=1567/2223
=0.70490328

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=1373/2275
=0.60351648

JetBlue Airways Corp's current ratio of this year was 0.70490328. JetBlue Airways Corp's current ratio of last year was 0.60351648. ==> This year's current ratio is higher. ==> Score 1.

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.

JetBlue Airways Corp's number of shares in issue this year was 342.2. JetBlue Airways Corp's number of shares in issue last year was 344.8. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=4528/6632
=0.6827503

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4114/6416
=0.64120948

JetBlue Airways Corp's gross margin of this year was 0.6827503. JetBlue Airways Corp's gross margin of last year was 0.64120948. ==> This year's gross margin is higher. ==> Score 1.

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 (Dec15)
=6632/8644
=0.76723739

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=6416/7839
=0.81847174

JetBlue Airways Corp's asset turnover of this year was 0.76723739. JetBlue Airways Corp's asset turnover of last year was 0.81847174. ==> 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+1+1+1+1+1+1+0
=8

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

JetBlue Airways Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


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.

JetBlue Airways Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1011111111
Question 2 1011111111
Question 3 1011011111
Question 4 1111111111
Question 5 1111111111
Question 6 0110000101
Question 7 0000111101
Question 8 0010001111
Question 9 0101111110
F-score 5476678978

JetBlue Airways Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 1111111111
Question 2 1111111111
Question 3 1111111111
Question 4 1111111111
Question 5 1111111111
Question 6 0100101111
Question 7 1100001111
Question 8 1111111111
Question 9 1111111000
F-score 8977879888
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