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Masco Corp (NYSE:MAS)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Masco Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

MAS' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 8

3
8

During the past 13 years, the highest Piotroski F-Score of Masco Corp was 8. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 103 + 45 + 74 + 139 = $361 Mil.
Cash Flow from Operations was 291 + 295 + -244 + 305 = $647 Mil.
Revenue was 2150 + 1998 + 1965 + 2260 = $8,373 Mil.
Gross Profit was 607 + 531 + 547 + 661 = $2,346 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(7062 + 7059 + 6933 + 6880 + 7227) / 5 = $7,032 Mil.
Total Assets was $7,227 Mil.
Long-Term Debt was $2,921 Mil.
Total Current Assets was $3,783 Mil.
Total Current Liabilities was $2,462 Mil.
Net Income was 15 + -87 + 53 + 78 = $59 Mil.

Revenue was 1913 + 1831 + 1876 + 2149 = $7,769 Mil.
Gross Profit was 500 + 451 + 508 + 609 = $2,068 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(7759 + 7016 + 6875 + 6779 + 7062) / 5 = $7,098 Mil.
Total Assets was $7,062 Mil.
Long-Term Debt was $3,421 Mil.
Total Current Assets was $3,479 Mil.
Total Current Liabilities was $2,042 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Masco Corp's current net income (ttm) was 361. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Masco Corp's current cash flow from operations (ttm) was 647. ==> 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)/Average Total Assets from Jun13 to Jun14
=361/7032.2
=0.05133529

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=59/7098.2
=0.00831197

Masco Corp's return on assets of this year was 0.05133529. Masco Corp's return on assets of last year was 0.00831197. ==> This year is higher. ==> Score 1.

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.

Masco Corp's current net income (ttm) was 361. Masco Corp's current cash flow from operations (ttm) was 647. ==> 647 > 361 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun14)=Long-Term Debt/Total Assets
=2921/7227
=0.40417877

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=3421/7062
=0.48442368

Masco Corp's gearing of this year was 0.40417877. Masco Corp's gearing of last year was 0.48442368. ==> This year is lower or equal to last year. ==> Score 1.

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: Jun14)=Total Current Assets/Total Current Liabilities
=3783/2462
=1.53655565

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=3479/2042
=1.70372184

Masco Corp's current ratio of this year was 1.53655565. Masco Corp's current ratio of last year was 1.70372184. ==> Last year's current ratio is higher ==> Score 0.

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.

Masco Corp's number of shares in issue this year was 352. Masco Corp's number of shares in issue last year was 352. ==> 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
=2346/8373
=0.28018631

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2068/7769
=0.26618612

Masco Corp's gross margin of this year was 0.28018631. Masco Corp's gross margin of last year was 0.26618612. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout 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)/Average Total Assets from Jun13 to Jun14
=8373/7032.2
=1.19066579

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=7769/7098.2
=1.09450283

Masco Corp's asset turnover of this year was 1.19066579. Masco Corp's asset turnover of last year was 1.09450283. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Masco Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Masco Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111000001
Q2 1111111111
Q3 1100010111
Q4 1111111111
Q5 0110010101
Q6 1001101011
Q7 1111111100
Q8 1000010011
Q9 1100000001
F-score 8755464558

Masco Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 0000011111
Q2 1111111111
Q3 1111111111
Q4 1111111111
Q5 1100001111
Q6 0011111110
Q7 0100000001
Q8 1111111111
Q9 1111111111
F-score 6766678888
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