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Kimco Realty Corp (NYSE:KIM)
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

Kimco Realty Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

KIM' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 6

3
8

During the past 13 years, the highest Piotroski F-Score of Kimco Realty Corp was 8. 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 own currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Net Income was 77.572 + 379.201 + 140.713 + 203.409 = $801 Mil.
Cash Flow from Operations was 231.289 + -23.583 + 136.956 + 78.891 = $424 Mil.
Revenue was 288.382 + 300.87 + 297.202 + 291.488 = $1,178 Mil.
Gross Profit was 213.983 + 220.141 + 225.359 + 219.746 = $879 Mil.
Average Total Assets from the begining of this year (Jun15)
to the end of this year (Jun16) was
(11467.304 + 11413.984 + 11344.171 + 11249.361 + 11392.432) / 5 = $11373.4504 Mil.
Total Assets at the begining of this year (Jun15) was $11,467 Mil.
Long-Term Debt was $5,189 Mil.
Total Current Assets was $541 Mil.
Total Current Liabilities was $117 Mil.
Net Income was 194.708 + 52.781 + 310.342 + 127 = $685 Mil.

Revenue was 255.234 + 264.513 + 283.456 + 294.061 = $1,097 Mil.
Gross Profit was 189.644 + 193.418 + 209.928 + 218.24 = $811 Mil.
Average Total Assets from the begining of last year (Jun14)
to the end of last year (Jun15) was
(10190.372 + 10293.211 + 10261.4 + 11733.888 + 11467.304) / 5 = $10789.235 Mil.
Total Assets at the begining of last year (Jun14) was $10,190 Mil.
Long-Term Debt was $5,538 Mil.
Total Current Assets was $371 Mil.
Total Current Liabilities was $111 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.

Kimco Realty Corp's current net income (TTM) was 801. ==> 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.

Kimco Realty Corp's current cash flow from operations (TTM) was 424. ==> 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 (Jun15)
=800.895/11467.304
=0.06984161

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=684.831/10190.372
=0.06720373

Kimco Realty Corp's return on assets of this year was 0.06984161. Kimco Realty Corp's return on assets of last year was 0.06720373. ==> 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.

Kimco Realty Corp's current net income (TTM) was 801. Kimco Realty Corp's current cash flow from operations (TTM) was 424. ==> 424 <= 801 ==> CFROA <= ROA ==> Score 0.

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: Jun16)=Long-Term Debt/Average Total Assets from Jun15 to Jun16
=5188.817/11373.4504
=0.45622189

Gearing (Last Year: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=5537.772/10789.235
=0.51326827

Kimco Realty Corp's gearing of this year was 0.45622189. Kimco Realty Corp's gearing of last year was 0.51326827. ==> 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: Jun16)=Total Current Assets/Total Current Liabilities
=541.338/116.857
=4.63248244

Current Ratio (Last Year: Jun15)=Total Current Assets/Total Current Liabilities
=370.841/111.455
=3.3272711

Kimco Realty Corp's current ratio of this year was 4.63248244. Kimco Realty Corp's current ratio of last year was 3.3272711. ==> 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.

Kimco Realty Corp's number of shares in issue this year was 419.3. Kimco Realty Corp's number of shares in issue last year was 413.1. ==> 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
=879.229/1177.942
=0.74641111

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=811.23/1097.264
=0.73932071

Kimco Realty Corp's gross margin of this year was 0.74641111. Kimco Realty Corp's gross margin of last year was 0.73932071. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Jun15)
=1177.942/11467.304
=0.10272179

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=1097.264/10190.372
=0.10767654

Kimco Realty Corp's asset turnover of this year was 0.10272179. Kimco Realty Corp's asset turnover of last year was 0.10767654. ==> 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+1+0+1+1+0+1+0
=6

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

Kimco Realty Corp 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.

Kimco Realty Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1110111111
Question 2 1111111111
Question 3 1000111011
Question 4 1111111110
Question 5 0011100000
Question 6 0111111010
Question 7 0000001000
Question 8 0010011100
Question 9 1011010111
F-score 5475677564

Kimco Realty Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Question 1 1111111111
Question 2 1111111111
Question 3 0111111101
Question 4 1111001000
Question 5 0000000011
Question 6 1101100001
Question 7 0000010010
Question 8 1100001011
Question 9 1111111100
F-score 6756556456
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