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

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: 4   Max: 9
Current: 6

4
9

During the past 13 years, the highest Piotroski F-Score of John Wiley & Sons Inc was 9. The lowest was 4. 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 (Oct14) TTM:Last Year (Oct13) TTM:
Net Income was 52.489 + 35.891 + 33.646 + 53.777 = $176 Mil.
Cash Flow from Operations was 220.295 + 194.427 + -102.227 + 8.091 = $321 Mil.
Revenue was 457.933 + 457.089 + 437.917 + 476.972 = $1,830 Mil.
Gross Profit was 327.37 + 330.916 + 313.864 + 342.431 = $1,315 Mil.
Average Total Assets from the begining of this year (Oct13)
to the end of this year (Oct14) was
(2650.461 + 2873.246 + 3077.365 + 3069.036 + 2912.775) / 5 = $2916.5766 Mil.
Total Assets at the begining of this year (Oct13) was $2,650 Mil.
Long-Term Debt was $750 Mil.
Total Current Assets was $541 Mil.
Total Current Liabilities was $528 Mil.
Net Income was 57.1 + 7.951 + 35.933 + 36.197 = $137 Mil.

Revenue was 472.435 + 445.854 + 411.02 + 449.153 = $1,778 Mil.
Gross Profit was 330.641 + 312.214 + 291.229 + 318.801 = $1,253 Mil.
Average Total Assets from the begining of last year (Oct12)
to the end of last year (Oct13) was
(2631.684 + 2880.884 + 2806.375 + 2656.284 + 2650.461) / 5 = $2725.1376 Mil.
Total Assets at the begining of last year (Oct12) was $2,632 Mil.
Long-Term Debt was $648 Mil.
Total Current Assets was $464 Mil.
Total Current Liabilities was $441 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.

John Wiley & Sons Inc's current net income (TTM) was 176. ==> 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.

John Wiley & Sons Inc's current cash flow from operations (TTM) was 321. ==> 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 (Oct13)
=175.803/2650.461
=0.06632922

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=137.181/2631.684
=0.0521267

John Wiley & Sons Inc's return on assets of this year was 0.06632922. John Wiley & Sons Inc's return on assets of last year was 0.0521267. ==> 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 176. John Wiley & Sons Inc's current cash flow from operations (TTM) was 321. ==> 321 > 176 ==> 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: Oct14)=Long-Term Debt/Average Total Assets from Oct13 to Oct14
=749.513/2916.5766
=0.25698382

Gearing (Last Year: Oct13)=Long-Term Debt/Average Total Assets from Oct12 to Oct13
=647.9/2725.1376
=0.23774946

John Wiley & Sons Inc's gearing of this year was 0.25698382. John Wiley & Sons Inc's gearing of last year was 0.23774946. ==> 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: Oct14)=Total Current Assets/Total Current Liabilities
=540.51/528.4
=1.02291824

Current Ratio (Last Year: Oct13)=Total Current Assets/Total Current Liabilities
=463.582/440.513
=1.05236849

John Wiley & Sons Inc's current ratio of this year was 1.02291824. John Wiley & Sons Inc's current ratio of last year was 1.05236849. ==> 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.

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 59.4. ==> 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
=1314.581/1829.911
=0.71838521

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1252.885/1778.462
=0.70447668

John Wiley & Sons Inc's gross margin of this year was 0.71838521. John Wiley & Sons Inc's gross margin of last year was 0.70447668. ==> 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 (Oct13)
=1829.911/2650.461
=0.69041235

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=1778.462/2631.684
=0.67578858

John Wiley & Sons Inc's asset turnover of this year was 0.69041235. John Wiley & Sons Inc's asset turnover of last year was 0.67578858. ==> 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+0+0+0+1+1
=6

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

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


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 0100011101
Q4 1111111111
Q5 1101011001
Q6 0000100111
Q7 1110000111
Q8 1101011111
Q9 1110010000
F-score 7855476768

John Wiley & Sons Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Q1 1111111111
Q2 1111111111
Q3 1100000101
Q4 1111111111
Q5 0000011100
Q6 1011000110
Q7 1111111000
Q8 1011111111
Q9 0110000001
F-score 7676566756
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