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Media General Inc (NYSE:MEG)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Media General Inc has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

MEG' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 7
Current: 3

3
7

During the past 13 years, the highest Piotroski F-Score of Media General Inc was 7. 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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was -7.433 + 1.635 + -48.493 + 14.832 = $-39 Mil.
Cash Flow from Operations was 56.419 + 39.969 + 39.108 + 21.452 = $157 Mil.
Revenue was 296.734 + 320.523 + 321.736 + 365.95 = $1,305 Mil.
Gross Profit was 170.858 + 186.354 + 178.244 + 213.245 = $749 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(4697.447 + 4695.876 + 4568.788 + 4462.165 + 4408.352) / 5 = $4566.5256 Mil.
Total Assets at the begining of this year (Dec14) was $4,697 Mil.
Long-Term Debt was $2,245 Mil.
Total Current Assets was $355 Mil.
Total Current Liabilities was $157 Mil.
Net Income was 5.385 + 6.786 + 13.395 + 27.94 = $54 Mil.

Revenue was 143.918 + 154.111 + 160.224 + 216.71 = $675 Mil.
Gross Profit was 93.303 + 103.293 + 105.545 + 150.908 = $453 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(1921.368 + 1845.693 + 1841.681 + 1908.553 + 4697.447) / 5 = $2442.9484 Mil.
Total Assets at the begining of last year (Dec13) was $1,921 Mil.
Long-Term Debt was $2,415 Mil.
Total Current Assets was $468 Mil.
Total Current Liabilities was $190 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.

Media General Inc's current net income (TTM) was -39. ==> 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.

Media General Inc's current cash flow from operations (TTM) was 157. ==> 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 (Dec14)
=-39.459/4697.447
=-0.00840009

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=53.506/1921.368
=0.02784787

Media General Inc's return on assets of this year was -0.00840009. Media General Inc's return on assets of last year was 0.02784787. ==> Last year is higher ==> Score 0.

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.

Media General Inc's current net income (TTM) was -39. Media General Inc's current cash flow from operations (TTM) was 157. ==> 157 > -39 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=2245.366/4566.5256
=0.49170117

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=2415.031/2442.9484
=0.98857225

Media General Inc's gearing of this year was 0.49170117. Media General Inc's gearing of last year was 0.98857225. ==> 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: Dec15)=Total Current Assets/Total Current Liabilities
=354.648/157.428
=2.25276317

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=468.09/189.681
=2.46777484

Media General Inc's current ratio of this year was 2.25276317. Media General Inc's current ratio of last year was 2.46777484. ==> Last year's current ratio is higher ==> Score 0.

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.

Media General Inc's number of shares in issue this year was 128.6. Media General Inc's number of shares in issue last year was 91.1. ==> 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
=748.701/1304.943
=0.5737423

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=453.049/674.963
=0.6712205

Media General Inc's gross margin of this year was 0.5737423. Media General Inc's gross margin of last year was 0.6712205. ==> 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 (Dec14)
=1304.943/4697.447
=0.27779834

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=674.963/1921.368
=0.35129293

Media General Inc's asset turnover of this year was 0.27779834. Media General Inc's asset turnover of last year was 0.35129293. ==> 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+0+1+1+0+0+0+0
=3

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

Media General Inc has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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.

Media General Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1100011110
Question 2 1111111111
Question 3 1001110010
Question 4 1111101111
Question 5 0100101001
Question 6 0101010100
Question 7 1110001100
Question 8 0011010010
Question 9 1001000100
F-score 6646455653

Media General Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 1111111100
Question 2 1100111111
Question 3 1000011100
Question 4 0100111111
Question 5 1000000001
Question 6 1111101110
Question 7 0100000000
Question 8 1000010000
Question 9 0111100000
F-score 6633555533
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