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Monro Muffler Brake Inc (NAS:MNRO)
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

Monro Muffler Brake Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

MNRO' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 5

3
8

During the past 13 years, the highest Piotroski F-Score of Monro Muffler Brake Inc 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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was 12.551 + 18.799 + 18.872 + 15.231 = $65.5 Mil.
Cash Flow from Operations was 37.733 + 31.621 + 13.856 + 36.264 = $119.5 Mil.
Revenue was 219.134 + 236.52 + 239.155 + 238.942 = $933.8 Mil.
Gross Profit was 83.659 + 99.718 + 100.725 + 93.367 = $377.5 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(909.291 + 907.794 + 932.208 + 997.819 + 1002.619) / 5 = $949.9462 Mil.
Total Assets at the begining of this year (Dec14) was $909.3 Mil.
Long-Term Debt was $289.2 Mil.
Total Current Assets was $189.8 Mil.
Total Current Liabilities was $161.3 Mil.
Net Income was 11.909 + 16.932 + 16.33 + 15.986 = $61.2 Mil.

Revenue was 203.244 + 217.507 + 221.299 + 236.553 = $878.6 Mil.
Gross Profit was 77.024 + 90.022 + 89.472 + 90.196 = $346.7 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(761.399 + 759.956 + 777.638 + 904.091 + 909.291) / 5 = $822.475 Mil.
Total Assets at the begining of last year (Dec13) was $761.4 Mil.
Long-Term Debt was $274.3 Mil.
Total Current Assets was $184.6 Mil.
Total Current Liabilities was $155.4 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.

Monro Muffler Brake Inc's current net income (TTM) was 65.5. ==> 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.

Monro Muffler Brake Inc's current cash flow from operations (TTM) was 119.5. ==> 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)
=65.453/909.291
=0.07198246

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=61.157/761.399
=0.08032188

Monro Muffler Brake Inc's return on assets of this year was 0.07198246. Monro Muffler Brake Inc's return on assets of last year was 0.08032188. ==> 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.

Monro Muffler Brake Inc's current net income (TTM) was 65.5. Monro Muffler Brake Inc's current cash flow from operations (TTM) was 119.5. ==> 119.5 > 65.5 ==> 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
=289.214/949.9462
=0.30445303

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=274.297/822.475
=0.33350193

Monro Muffler Brake Inc's gearing of this year was 0.30445303. Monro Muffler Brake Inc's gearing of last year was 0.33350193. ==> 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
=189.787/161.316
=1.1764921

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=184.594/155.372
=1.18807765

Monro Muffler Brake Inc's current ratio of this year was 1.1764921. Monro Muffler Brake Inc's current ratio of last year was 1.18807765. ==> 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.

Monro Muffler Brake Inc's number of shares in issue this year was 33.3. Monro Muffler Brake Inc's number of shares in issue last year was 32.8. ==> 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
=377.469/933.751
=0.40425017

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=346.714/878.603
=0.39461964

Monro Muffler Brake Inc's gross margin of this year was 0.40425017. Monro Muffler Brake Inc's gross margin of last year was 0.39461964. ==> This year's gross 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 (TTM)/Total Assets at the Beginning of This Year (Dec14)
=933.751/909.291
=1.02690008

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=878.603/761.399
=1.15393243

Monro Muffler Brake Inc's asset turnover of this year was 1.02690008. Monro Muffler Brake Inc's asset turnover of last year was 1.15393243. ==> 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
=1+1+0+1+1+0+0+1+0
=5

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

Monro Muffler Brake Inc 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.

Monro Muffler Brake Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 0011110010
Question 4 1111111111
Question 5 0011100101
Question 6 0100010100
Question 7 0110000000
Question 8 0011000111
Question 9 1001010010
F-score 4577563665

Monro Muffler Brake Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 0011110000
Question 4 1111111111
Question 5 1110000111
Question 6 0111000000
Question 7 0000000000
Question 8 0111111111
Question 9 0000010000
F-score 4676564555
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