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John Wiley & Sons Inc (NYSE:JW.A)
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

John Wiley & Sons Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

JW.A' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 6

3
9

During the past 13 years, the highest Piotroski F-Score of John Wiley & Sons Inc was 9. The lowest was 3. And the median was 7.


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 (Jul14) TTM:Last Year (Jul13) TTM:
Net Income was 36.197 + 52.489 + 35.891 + 33.646 = $158 Mil.
Cash Flow from Operations was -9.822 + 220.295 + 194.427 + -102.227 = $303 Mil.
Revenue was 449.153 + 457.933 + 457.089 + 437.917 = $1,802 Mil.
Gross Profit was 318.801 + 327.37 + 330.916 + 313.864 = $1,291 Mil.
Average Total Assets from the begining of this year (Jul13)
to the end of this year (Jul14) was
(2656.284 + 2650.461 + 2873.246 + 3077.365 + 3069.036) / 5 = $2,865 Mil.
Total Assets was $3,069 Mil.
Long-Term Debt was $788 Mil.
Total Current Assets was $602 Mil.
Total Current Liabilities was $583 Mil.
Net Income was 43.057 + 57.1 + 7.951 + 35.933 = $144 Mil.

Revenue was 431.755 + 472.435 + 445.854 + 411.02 = $1,761 Mil.
Gross Profit was 302.201 + 330.641 + 312.214 + 291.229 = $1,236 Mil.
Average Total Assets from the begining of last year (Jul12)
to the end of last year (Jul13) was
(2415.558 + 2631.684 + 2880.884 + 2806.375 + 2656.284) / 5 = $2,678 Mil.
Total Assets was $2,656 Mil.
Long-Term Debt was $660 Mil.
Total Current Assets was $504 Mil.
Total Current Liabilities was $533 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

John Wiley & Sons Inc's current net income (ttm) was 158. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

John Wiley & Sons Inc's current cash flow from operations (ttm) was 303. ==> 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)/Average Total Assets from Jul13 to Jul14
=158.223/2865.2784
=0.05522081

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jul12 to Jul13
=144.041/2678.157
=0.05378363

John Wiley & Sons Inc's return on assets of this year was 0.05522081. John Wiley & Sons Inc's return on assets of last year was 0.05378363. ==> 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.

John Wiley & Sons Inc's current net income (ttm) was 158. John Wiley & Sons Inc's current cash flow from operations (ttm) was 303. ==> 303 > 158 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jul14)=Long-Term Debt/Total Assets
=788.013/3069.036
=0.25676238

Gearing (Last Year: Jul13)=Long-Term Debt/Total Assets
=660/2656.284
=0.24846741

John Wiley & Sons Inc's gearing of this year was 0.25676238. John Wiley & Sons Inc's gearing of last year was 0.24846741. ==> 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: Jul14)=Total Current Assets/Total Current Liabilities
=601.761/583.167
=1.03188452

Current Ratio (Last Year: Jul13)=Total Current Assets/Total Current Liabilities
=504.415/533.208
=0.94600044

John Wiley & Sons Inc's current ratio of this year was 1.03188452. John Wiley & Sons Inc's current ratio of last year was 0.94600044. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

John Wiley & Sons Inc's number of shares in issue this year was 59.8. John Wiley & Sons Inc's number of shares in issue last year was 59.1. ==> There is larger 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: TTM)=Gross Profit/Revenue
=1290.951/1802.092
=0.71636243

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1236.285/1761.064
=0.70201026

John Wiley & Sons Inc's gross margin of this year was 0.71636243. John Wiley & Sons Inc's gross margin of last year was 0.70201026. ==> 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 average total assets throughout 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)/Average Total Assets from Jul13 to Jul14
=1802.092/2865.2784
=0.62894133

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jul12 to Jul13
=1761.064/2678.157
=0.65756563

John Wiley & Sons Inc's asset turnover of this year was 0.62894133. John Wiley & Sons Inc's asset turnover of last year was 0.65756563. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

John Wiley & Sons Inc 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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

John Wiley & Sons Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
Q1 1111111111
Q2 1111111111
Q3 0101011101
Q4 1111111111
Q5 1101011001
Q6 0000100111
Q7 1110000111
Q8 1101011111
Q9 0111011001
F-score 6857477769

John Wiley & Sons Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
Q1 1111111111
Q2 1111111111
Q3 1110000011
Q4 1111111111
Q5 0000001110
Q6 1101100011
Q7 1111111100
Q8 1101111111
Q9 1000000000
F-score 8756656676
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