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Jewett-Cameron Trading Company, Ltd. (NAS:JCTCF)
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

Jewett-Cameron Trading Company, Ltd. has an F-score of 5 indicating the company's financial situation is typical for a stable company.

JCTCF' 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 Jewett-Cameron Trading Company, Ltd. was 8. 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 own currency.

This Year (Feb14) TTM:Last Year (Feb13) TTM:
Net Income was 0.237 + 0.333 + 0.842 + 1.019 = $2.43 Mil.
Cash Flow from Operations was -1.693 + -0.159 + 0.93 + 3.389 = $2.47 Mil.
Revenue was 9.733 + 8.006 + 10.71 + 15.052 = $43.50 Mil.
Gross Profit was 1.758 + 1.85 + 2.37 + 3.03 = $9.01 Mil.
Total Assets at the begining of this year (Feb13) was $21.41 Mil.
Total Assets was $22.73 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $20.18 Mil.
Total Current Liabilities was $2.09 Mil.
Net Income was 0.791 + 0.481 + 0.771 + 0.937 = $2.98 Mil.

Revenue was 14.228 + 9.296 + 10.84 + 16.113 = $50.48 Mil.
Gross Profit was 2.44 + 1.991 + 2.275 + 2.807 = $9.51 Mil.
Total Assets at the begining of last year (Feb12) was $18.45 Mil.
Total Assets was $21.41 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $19.02 Mil.
Total Current Liabilities was $2.62 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.

Jewett-Cameron Trading Company, Ltd.'s current net income was 2.43. ==> 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.

Jewett-Cameron Trading Company, Ltd.'s current cash flow from operations was 2.47. ==> 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 (Feb13)
=2.431/21.409
=0.11355038

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Feb12)
=2.98/18.446
=0.16155264

Jewett-Cameron Trading Company, Ltd.'s return on assets of this year was 0.11355038. Jewett-Cameron Trading Company, Ltd.'s return on assets of last year was 0.16155264. ==> 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.

Jewett-Cameron Trading Company, Ltd.'s current net income was 2.43. Jewett-Cameron Trading Company, Ltd.'s current cash flow from operations was 2.47. ==> 2.47 > 2.43 ==> 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
=0/22.728
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/21.409
=0

Jewett-Cameron Trading Company, Ltd.'s gearing of this year was 0. Jewett-Cameron Trading Company, Ltd.'s gearing of last year was 0. ==> Last year is lower ==> 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)=Total Current Assets/Total Current Liabilities
=20.183/2.087
=9.67081936

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=19.015/2.62
=7.25763359

Jewett-Cameron Trading Company, Ltd.'s current ratio of this year was 9.67081936. Jewett-Cameron Trading Company, Ltd.'s current ratio of last year was 7.25763359. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Jewett-Cameron Trading Company, Ltd.'s number of shares in issue this year was 3.1. Jewett-Cameron Trading Company, Ltd.'s number of shares in issue last year was 3.1. ==> 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
=9.008/43.501
=0.2070757

Gross Margin (Last Year)=Gross Profit/Revenue
=9.513/50.477
=0.18846207

Jewett-Cameron Trading Company, Ltd.'s gross margin of this year was 0.2070757. Jewett-Cameron Trading Company, Ltd.'s gross margin of last year was 0.18846207. ==> 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 (Feb13)
=43.501/21.409
=2.03190247

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Feb12)
=50.477/18.446
=2.73647403

Jewett-Cameron Trading Company, Ltd.'s asset turnover of this year was 2.03190247. Jewett-Cameron Trading Company, Ltd.'s asset turnover of last year was 2.73647403. ==> 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+1+0+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Jewett-Cameron Trading Company, Ltd. 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.

Jewett-Cameron Trading Company, Ltd. Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
Q1 1111111111
Q2 1111111111
Q3 1110001011
Q4 1100111110
Q5 1011110000
Q6 0111111011
Q7 1010001111
Q8 0111111001
Q9 1010001011
F-score 7685668477

Jewett-Cameron Trading Company, Ltd. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
Q1 1111111111
Q2 0111111111
Q3 1111111100
Q4 0101101001
Q5 0000000000
Q6 0111111111
Q7 1111111011
Q8 0000111111
Q9 1011111110
F-score 4667878666
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