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McMoRan Exploration Co. (NYSE:MMR)
Piotroski F-Score
0 (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

McMoRan Exploration Co. has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

MMR' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Mar13) TTM:Last Year (Mar12) TTM:
Net Income was -65.158 + -53.707 + 9.079 + 62.953 = $-46.8 Mil.
Cash Flow from Operations was 11.698 + 12.061 + -28.878 + 28.87 = $23.8 Mil.
Revenue was 90.295 + 91.776 + 84.17 + 81.446 = $347.7 Mil.
Gross Profit was 58.118 + 43.737 + -80.308 + 38.596 = $60.1 Mil.
Average Total Assets from the begining of this year (Mar12)
to the end of this year (Mar13) was
(2927.417 + 2786.669 + 2751.284 + 2677.122 + 2691.042) / 5 = $2766.7068 Mil.
Total Assets at the begining of this year (Mar12) was $2,927.4 Mil.
Long-Term Debt was $490.0 Mil.
Total Current Assets was $198.8 Mil.
Total Current Liabilities was $304.2 Mil.
Net Income was -39.855 + 0.922 + 38.743 + 5.492 = $5.3 Mil.

Revenue was 158.308 + 138.183 + 121.919 + 110.647 = $529.1 Mil.
Gross Profit was 106.119 + 76.952 + 76.624 + 71.919 = $331.6 Mil.
Average Total Assets from the begining of last year (Mar11)
to the end of last year (Mar12) was
(2892.474 + 2889.134 + 2891.378 + 2939.214 + 2927.417) / 5 = $2907.9234 Mil.
Total Assets at the begining of last year (Mar11) was $2,892.5 Mil.
Long-Term Debt was $487.9 Mil.
Total Current Assets was $550.3 Mil.
Total Current Liabilities was $413.8 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.

McMoRan Exploration Co.'s current net income (TTM) was -46.8. ==> Negative ==> Score 0.

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.

McMoRan Exploration Co.'s current cash flow from operations (TTM) was 23.8. ==> 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 (Mar12)
=-46.833/2927.417
=-0.01599806

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar11)
=5.302/2892.474
=0.00183303

McMoRan Exploration Co.'s return on assets of this year was -0.01599806. McMoRan Exploration Co.'s return on assets of last year was 0.00183303. ==> 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.

McMoRan Exploration Co.'s current net income (TTM) was -46.8. McMoRan Exploration Co.'s current cash flow from operations (TTM) was 23.8. ==> 23.8 > -46.8 ==> 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: Mar13)=Long-Term Debt/Average Total Assets from Mar12 to Mar13
=489.997/2766.7068
=0.17710478

Gearing (Last Year: Mar12)=Long-Term Debt/Average Total Assets from Mar11 to Mar12
=487.89/2907.9234
=0.16777952

McMoRan Exploration Co.'s gearing of this year was 0.17710478. McMoRan Exploration Co.'s gearing of last year was 0.16777952. ==> 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: Mar13)=Total Current Assets/Total Current Liabilities
=198.759/304.162
=0.65346427

Current Ratio (Last Year: Mar12)=Total Current Assets/Total Current Liabilities
=550.324/413.752
=1.33008179

McMoRan Exploration Co.'s current ratio of this year was 0.65346427. McMoRan Exploration Co.'s current ratio of last year was 1.33008179. ==> 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.

McMoRan Exploration Co.'s number of shares in issue this year was 225.5. McMoRan Exploration Co.'s number of shares in issue last year was 161.5. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=60.143/347.687
=0.1729803

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=331.614/529.057
=0.62680203

McMoRan Exploration Co.'s gross margin of this year was 0.1729803. McMoRan Exploration Co.'s gross margin of last year was 0.62680203. ==> 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 (Mar12)
=347.687/2927.417
=0.11876921

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar11)
=529.057/2892.474
=0.18290813

McMoRan Exploration Co.'s asset turnover of this year was 0.11876921. McMoRan Exploration Co.'s asset turnover of last year was 0.18290813. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+0+1+0+0+0+0+0
=2

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

McMoRan Exploration Co. has an F-score of 2. 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.

McMoRan Exploration Co. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
Q1 0000000000
Q2 0011111111
Q3 0110010110
Q4 1111111111
Q5 0111010110
Q6 1000011100
Q7 1000000000
Q8 0011110110
Q9 0011100100
F-score 3365463752

McMoRan Exploration Co. Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
Q1 0000010000
Q2 1111111111
Q3 1111111100
Q4 1111111111
Q5 0111111100
Q6 1111000000
Q7 0000000000
Q8 1001111000
Q9 1011000000
F-score 7567564322
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