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KEYW Holding Corp (NAS:KEYW)
Piotroski F-Score
4 (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

KEYW Holding Corp has an F-score of 4 indicating the company's financial situation is typical for a stable company.

KEYW' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 6
Current: 4

3
6

During the past 8 years, the highest Piotroski F-Score of KEYW Holding Corp was 6. The lowest was 3. And the median was 5.


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 -15.41 + -9.572 + 2.464 + -3.21 = $-25.7 Mil.
Cash Flow from Operations was 1.107 + 11.014 + 1.518 + 9.456 = $23.1 Mil.
Revenue was 73.642 + 73.346 + 72.111 + 68.928 = $288.0 Mil.
Gross Profit was 22.845 + 23.879 + 23.799 + 20.732 = $91.3 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(453.405 + 441.603 + 436.921 + 444.704 + 445.453) / 5 = $444.4172 Mil.
Total Assets at the begining of this year (Dec15) was $453.4 Mil.
Long-Term Debt was $132.5 Mil.
Total Current Assets was $104.9 Mil.
Total Current Liabilities was $38.1 Mil.
Net Income was -6.102 + -35.267 + -8.004 + -12.84 = $-62.2 Mil.

Revenue was 71.634 + 78.387 + 81.098 + 80.691 = $311.8 Mil.
Gross Profit was 22.043 + 25.786 + 25.657 + 26.104 = $99.6 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(473.033 + 470.385 + 468.04 + 472.759 + 453.405) / 5 = $467.5244 Mil.
Total Assets at the begining of last year (Dec14) was $473.0 Mil.
Long-Term Debt was $126.2 Mil.
Total Current Assets was $99.6 Mil.
Total Current Liabilities was $36.6 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.

KEYW Holding Corp's current net income (TTM) was -25.7. ==> Negative ==> Score 0.

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.

KEYW Holding Corp's current cash flow from operations (TTM) was 23.1. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Dec15)
=-25.728/453.405
=-0.05674397

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=-62.213/473.033
=-0.13151937

KEYW Holding Corp's return on assets of this year was -0.05674397. KEYW Holding Corp's return on assets of last year was -0.13151937. ==> 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.

KEYW Holding Corp's current net income (TTM) was -25.7. KEYW Holding Corp's current cash flow from operations (TTM) was 23.1. ==> 23.1 > -25.7 ==> 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
=132.482/444.4172
=0.29810277

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=126.188/467.5244
=0.26990677

KEYW Holding Corp's gearing of this year was 0.29810277. KEYW Holding Corp's gearing of last year was 0.26990677. ==> Last year is lower than this year ==> Score 0.

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
=104.858/38.091
=2.75282875

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=99.559/36.608
=2.71959681

KEYW Holding Corp's current ratio of this year was 2.75282875. KEYW Holding Corp's current ratio of last year was 2.71959681. ==> 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.

KEYW Holding Corp's number of shares in issue this year was 41. KEYW Holding Corp's number of shares in issue last year was 38.7. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=91.255/288.027
=0.31682794

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=99.59/311.81
=0.31939322

KEYW Holding Corp's gross margin of this year was 0.31682794. KEYW Holding Corp's gross margin of last year was 0.31939322. ==> Last year's gross margin is higher ==> Score 0.

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)
=288.027/453.405
=0.63525325

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=311.81/473.033
=0.65917177

KEYW Holding Corp's asset turnover of this year was 0.63525325. KEYW Holding Corp's asset turnover of last year was 0.65917177. ==> 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
=0+1+1+1+0+1+0+0+0
=4

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

KEYW Holding Corp has an F-score of 4 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 local exchange's currency.

KEYW Holding Corp Annual Data

Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 110000
Question 2 111111
Question 3 010001
Question 4 111111
Question 5 101010
Question 6 010101
Question 7 000010
Question 8 110000
Question 9 000110
F-score 563454

KEYW Holding Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 0000000000
Question 2 1111111111
Question 3 1000000111
Question 4 1111111111
Question 5 0000110000
Question 6 1111000111
Question 7 0000010000
Question 8 1000000010
Question 9 0111110000
F-score 5444452454
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