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Coca-Cola Femsa SAB de CV (NYSE:KOF)
Piotroski F-Score
5 (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

Coca-Cola Femsa SAB de CV has an F-score of 5 indicating the company's financial situation is typical for a stable company.

KOF' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 5

3
9

During the past 13 years, the highest Piotroski F-Score of Coca-Cola Femsa SAB de CV was 9. The lowest was 3. And the median was 6.


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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 249.884704074 + 175.09285227 + 206.184773574 + 252.549671376 = $884 Mil.
Cash Flow from Operations was 1698.46272098 + 0 + 0 + 0 = $1,698 Mil.
Revenue was 3556.80245965 + 2933.98014098 + 3188.89880861 + 3156.37984438 = $12,836 Mil.
Gross Profit was 1646.65641814 + 1356.55271735 + 1504.47926608 + 1479.56485609 = $5,987 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(14866.2581386 + 16653.7279016 + 16201.6978701 + 16829.0336484 + 16612.5254967) / 5 = $16232.6486111 Mil.
Total Assets at the begining of this year (Sep13) was $14,866 Mil.
Long-Term Debt was $4,526 Mil.
Total Current Assets was $3,549 Mil.
Total Current Liabilities was $2,709 Mil.
Net Income was 342.790516906 + 194.72 + 216.522678186 + 226.273458445 = $980 Mil.

Revenue was 3228.68247182 + 2684.88 + 2796.9762419 + 2872.00306396 = $11,583 Mil.
Gross Profit was 1527.16673144 + 1243.84 + 1325.59395248 + 1346.22749904 = $5,443 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(11308.18632 + 12911.2320249 + 12773.52 + 13781.0089479 + 14866.2581386) / 5 = $13128.0410863 Mil.
Total Assets at the begining of last year (Sep12) was $11,308 Mil.
Long-Term Debt was $2,763 Mil.
Total Current Assets was $3,570 Mil.
Total Current Liabilities was $2,789 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.

Coca-Cola Femsa SAB de CV's current net income (TTM) was 884. ==> 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.

Coca-Cola Femsa SAB de CV's current cash flow from operations (TTM) was 1,698. ==> 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 (Sep13)
=883.712001293/14866.2581386
=0.05944414

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=980.306653537/11308.18632
=0.08669

Coca-Cola Femsa SAB de CV's return on assets of this year was 0.05944414. Coca-Cola Femsa SAB de CV's return on assets of last year was 0.08669. ==> Last year is higher ==> Score 0.

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.

Coca-Cola Femsa SAB de CV's current net income (TTM) was 884. Coca-Cola Femsa SAB de CV's current cash flow from operations (TTM) was 1,698. ==> 1,698 > 884 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=4526.25217194/16232.6486111
=0.27883633

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=2762.61968594/13128.0410863
=0.21043655

Coca-Cola Femsa SAB de CV's gearing of this year was 0.27883633. Coca-Cola Femsa SAB de CV's gearing of last year was 0.21043655. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=3549.36919242/2708.84641535
=1.31028809

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=3569.97319035/2789.1229414
=1.27996265

Coca-Cola Femsa SAB de CV's current ratio of this year was 1.31028809. Coca-Cola Femsa SAB de CV's current ratio of last year was 1.27996265. ==> 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.

Coca-Cola Femsa SAB de CV's number of shares in issue this year was 207.3. Coca-Cola Femsa SAB de CV's number of shares in issue last year was 207.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=5987.25325765/12836.0612536
=0.46644007

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5442.82818297/11582.5417777
=0.46991656

Coca-Cola Femsa SAB de CV's gross margin of this year was 0.46644007. Coca-Cola Femsa SAB de CV's gross margin of last year was 0.46991656. ==> Last year's gross margin is higher ==> Score 0.

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 (Sep13)
=12836.0612536/14866.2581386
=0.86343592

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=11582.5417777/11308.18632
=1.02426167

Coca-Cola Femsa SAB de CV's asset turnover of this year was 0.86343592. Coca-Cola Femsa SAB de CV's asset turnover of last year was 1.02426167. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+1+1+0+0
=5

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

Coca-Cola Femsa SAB de CV has an F-score of 5 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.

Coca-Cola Femsa SAB de CV Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0001011010
Q4 1111111111
Q5 1111110100
Q6 0011011010
Q7 0110111011
Q8 0101000011
Q9 0101010110
F-score 4768586585

Coca-Cola Femsa SAB de CV Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 1111100000
Q4 1111111111
Q5 1100000000
Q6 0010000111
Q7 0000000001
Q8 0111111000
Q9 1101100000
F-score 6766544445
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