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Nestle Pakistan (KAR:NESTLE) Piotroski F-Score : 7 (As of Apr. 29, 2024)


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What is Nestle Pakistan Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a 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

Nestle Pakistan has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Nestle Pakistan's Piotroski F-Score or its related term are showing as below:

KAR:NESTLE' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 7   Max: 8
Current: 7

During the past 13 years, the highest Piotroski F-Score of Nestle Pakistan was 8. The lowest was 5. And the median was 7.


Nestle Pakistan Piotroski F-Score Historical Data

The historical data trend for Nestle Pakistan's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nestle Pakistan Piotroski F-Score Chart

Nestle Pakistan Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 7.00 8.00 7.00 7.00

Nestle Pakistan Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 6.00 8.00 7.00

Competitive Comparison of Nestle Pakistan's Piotroski F-Score

For the Packaged Foods subindustry, Nestle Pakistan's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nestle Pakistan's Piotroski F-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Pakistan's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Nestle Pakistan's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 5661.889 + 5324.038 + 4805.299 + 701.573 = ₨16,493 Mil.
Cash Flow from Operations was -515.663 + 6878.88 + 4581.233 + 7301.288 = ₨18,246 Mil.
Revenue was 49591.628 + 51838.551 + 49723.087 + 49451.739 = ₨200,605 Mil.
Gross Profit was 16591.369 + 17807.641 + 15281.098 + 21079.762 = ₨70,760 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(83651.751 + 94694.751 + 98039.457 + 98849.598 + 97889.911) / 5 = ₨94625.0936 Mil.
Total Assets at the begining of this year (Dec22) was ₨83,652 Mil.
Long-Term Debt & Capital Lease Obligation was ₨9,525 Mil.
Total Current Assets was ₨63,830 Mil.
Total Current Liabilities was ₨74,668 Mil.
Net Income was 4452.355 + 3242.755 + 3691.204 + 3663.397 = ₨15,050 Mil.

Revenue was 37781.422 + 42661.176 + 40535.899 + 41537.758 = ₨162,516 Mil.
Gross Profit was 12665.269 + 13498.05 + 11658.762 + 17629.374 = ₨55,451 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(65403.898 + 72848.998 + 70245.47 + 75115.561 + 83651.751) / 5 = ₨73453.1356 Mil.
Total Assets at the begining of last year (Dec21) was ₨65,404 Mil.
Long-Term Debt & Capital Lease Obligation was ₨7,878 Mil.
Total Current Assets was ₨51,444 Mil.
Total Current Liabilities was ₨66,613 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

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.

Nestle Pakistan's current Net Income (TTM) was 16,493. ==> 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.

Nestle Pakistan's current Cash Flow from Operations (TTM) was 18,246. ==> 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.

ROA (This Year)=Net Income/Total Assets (Dec22)
=16492.799/83651.751
=0.19716024

ROA (Last Year)=Net Income/Total Assets (Dec21)
=15049.711/65403.898
=0.23010419

Nestle Pakistan's return on assets of this year was 0.19716024. Nestle Pakistan's return on assets of last year was 0.23010419. ==> Last year is higher ==> Score 0.

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.

Nestle Pakistan's current Net Income (TTM) was 16,493. Nestle Pakistan's current Cash Flow from Operations (TTM) was 18,246. ==> 18,246 > 16,493 ==> 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: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=9524.634/94625.0936
=0.10065653

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=7878.203/73453.1356
=0.10725482

Nestle Pakistan's gearing of this year was 0.10065653. Nestle Pakistan's gearing of last year was 0.10725482. ==> 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: Dec23)=Total Current Assets/Total Current Liabilities
=63830.144/74668.349
=0.85484874

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=51443.5/66613.1
=0.77227302

Nestle Pakistan's current ratio of this year was 0.85484874. Nestle Pakistan's current ratio of last year was 0.77227302. ==> 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.

Nestle Pakistan's number of shares in issue this year was 45.351. Nestle Pakistan's number of shares in issue last year was 45.352. ==> 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
=70759.87/200605.005
=0.35273233

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=55451.455/162516.255
=0.34120559

Nestle Pakistan's gross margin of this year was 0.35273233. Nestle Pakistan's gross margin of last year was 0.34120559. ==> 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/Total Assets at the Beginning of This Year (Dec22)
=200605.005/83651.751
=2.3980969

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=162516.255/65403.898
=2.48480993

Nestle Pakistan's asset turnover of this year was 2.3980969. Nestle Pakistan's asset turnover of last year was 2.48480993. ==> 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+0+1+1+1+1+1+0
=7

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

Nestle Pakistan has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Nestle Pakistan  (KAR:NESTLE) Piotroski F-Score 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.


Nestle Pakistan Piotroski F-Score Related Terms

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Nestle Pakistan (KAR:NESTLE) Business Description

Traded in Other Exchanges
N/A
Address
Packages Mall, PO Amer Sidhu, Shahrah-e-Roomi, Lahore, PAK, 54760
Nestle Pakistan Ltd is a food and beverage company. The principal activity of the company is the manufacturing, processing, and sale of food products including imported products. The company's operating segments: Dairy and Nutrition Products, Powdered and Liquid Beverages, and Others. It generates maximum revenue from the Dairy and Nutrition Products segment. The company has operational footprints across Pakistan, Afghanistan, and other foreign countries. Its key products are ambient dairy, confectionery, coffee, beverages, infant nutrition, and drinking water. The majority of its revenue is derived from Pakistan.

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