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Erste Group Bank AG. (LTS:0MJK) Piotroski F-Score : 7 (As of Apr. 28, 2024)


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What is Erste Group Bank AG. 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

Erste Group Bank AG. 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 Erste Group Bank AG.'s Piotroski F-Score or its related term are showing as below:

LTS:0MJK' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 7

During the past 13 years, the highest Piotroski F-Score of Erste Group Bank AG. was 9. The lowest was 2. And the median was 6.


Erste Group Bank AG. Piotroski F-Score Historical Data

The historical data trend for Erste Group Bank AG.'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.

Erste Group Bank AG. Piotroski F-Score Chart

Erste Group Bank AG. 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 4.00 5.00 7.00 4.00 7.00

Erste Group Bank AG. 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 4.00 5.00 4.00 6.00 7.00

Competitive Comparison of Erste Group Bank AG.'s Piotroski F-Score

For the Banks - Regional subindustry, Erste Group Bank AG.'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.


Erste Group Bank AG.'s Piotroski F-Score Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Erste Group Bank AG.'s Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Erste Group Bank AG.'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 593.611 + 896.3 + 819.7 + 688.448 = €2,998 Mil.
Cash Flow from Operations was 7636 + -9615 + -706 + 5271 = €2,586 Mil.
Revenue was 2495.1 + 2655.5 + 2681.7 + 2487.593 = €10,320 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(323865 + 342921.386 + 343992.685 + 337161.094 + 337155) / 5 = €337019.033 Mil.
Total Assets at the begining of this year (Dec22) was €323,865 Mil.
Long-Term Debt & Capital Lease Obligation was €44,427 Mil.
Total Assets was €337,155 Mil.
Total Liabilities was €308,654 Mil.
Net Income was 448.848 + 688.2 + 510 + 517.976 = €2,165 Mil.

Revenue was 2045.449 + 2075.6 + 2076 + 2208.512 = €8,406 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(307428.2 + 325610.049 + 327093.365 + 335296.87 + 323865) / 5 = €323858.6968 Mil.
Total Assets at the begining of last year (Dec21) was €307,428 Mil.
Long-Term Debt & Capital Lease Obligation was €36,565 Mil.
Total Assets was €323,865 Mil.
Total Liabilities was €298,560 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.

Erste Group Bank AG.'s current Net Income (TTM) was 2,998. ==> 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.

Erste Group Bank AG.'s current Cash Flow from Operations (TTM) was 2,586. ==> 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)
=2998.059/323865
=0.00925713

ROA (Last Year)=Net Income/Total Assets (Dec21)
=2165.024/307428.2
=0.00704237

Erste Group Bank AG.'s return on assets of this year was 0.00925713. Erste Group Bank AG.'s return on assets of last year was 0.00704237. ==> 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.

Erste Group Bank AG.'s current Net Income (TTM) was 2,998. Erste Group Bank AG.'s current Cash Flow from Operations (TTM) was 2,586. ==> 2,586 <= 2,998 ==> 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: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=44427/337019.033
=0.13182342

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=36565/323858.6968
=0.11290418

Erste Group Bank AG.'s gearing of this year was 0.13182342. Erste Group Bank AG.'s gearing of last year was 0.11290418. ==> 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

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Dec23)=Total Assets/Total Liabilities
=337155/308654
=1.09233964

Current Ratio (Last Year: Dec22)=Total Assets/Total Liabilities
=323865/298560
=1.08475683

Erste Group Bank AG.'s current ratio of this year was 1.09233964. Erste Group Bank AG.'s current ratio of last year was 1.08475683. ==> 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.

Erste Group Bank AG.'s number of shares in issue this year was 421.626. Erste Group Bank AG.'s number of shares in issue last year was 429.795. ==> 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.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=2998.059/10319.893
=0.29051261

Net Margin (Last Year: TTM)=Net Income/Revenue
=2165.024/8405.561
=0.25757043

Erste Group Bank AG.'s net margin of this year was 0.29051261. Erste Group Bank AG.'s net margin of last year was 0.25757043. ==> This year's net 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)
=10319.893/323865
=0.0318648

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=8405.561/307428.2
=0.02734154

Erste Group Bank AG.'s asset turnover of this year was 0.0318648. Erste Group Bank AG.'s asset turnover of last year was 0.02734154. ==> This year's asset turnover is higher. ==> Score 1.

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+0+1+1+1+1
=7

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

Erste Group Bank AG. has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Erste Group Bank AG.  (LTS:0MJK) 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.


Erste Group Bank AG. Piotroski F-Score Related Terms

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Erste Group Bank AG. (LTS:0MJK) Business Description

Address
Am Belvedere 1, Vienna, AUT, A-1100
Erste Group Bank AG. is a financial services provider. Its banking operations is the retail and corporate customer business in the eastern part of the European Union, including Austria. The geographical areas consist of two core markets, Austria and Central and Eastern Europe and a residual segment Other comprises the remaining business activities of the bank outside its core markets as well as the reconciliation to the consolidated accounting result. The company's operating segment include Retail; Corporates; Group Markets; Asset/Liability Management and Local Corporate Center; Savings Banks and Group Corporate Center.

Erste Group Bank AG. (LTS:0MJK) Headlines

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