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MOD-PAC Corporation (NAS:MPAC)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

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

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

MPAC' 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 (Jun13) TTM:Last Year (Jun12) TTM:
Net Income was 0.019 + 0.325 + 1.037 + 0.895 = $2.28 Mil.
Cash Flow from Operations was 0.389 + 0.752 + 2.731 + 2.224 = $6.10 Mil.
Revenue was 14.294 + 14.42 + 16.617 + 15.374 = $60.71 Mil.
Gross Profit was 2.43 + 2.641 + 3.867 + 3.302 = $12.24 Mil.
Total Assets at the begining of this year (Jun12) was $30.65 Mil.
Total Assets was $33.12 Mil.
Long-Term Debt was $1.80 Mil.
Total Current Assets was $17.79 Mil.
Total Current Liabilities was $2.68 Mil.
Net Income was -0.12 + -0.123 + 0.41 + 0.625 = $0.79 Mil.

Revenue was 13.49 + 13.801 + 14.559 + 14.36 = $56.21 Mil.
Gross Profit was 1.786 + 1.775 + 2.506 + 2.828 = $8.90 Mil.
Total Assets at the begining of last year (Jun11) was $29.92 Mil.
Total Assets was $30.65 Mil.
Long-Term Debt was $1.80 Mil.
Total Current Assets was $14.43 Mil.
Total Current Liabilities was $3.06 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.

MOD-PAC Corporation's current net income was 2.28. ==> Positive ==> Score 1.

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.

MOD-PAC Corporation's current cash flow from operations was 6.10. ==> 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/Total Assets at the beginning of this year (Jun12)
=2.276/30.65
=0.07425775

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun11)
=0.792/29.921
=0.0264697

MOD-PAC Corporation's return on assets of this year was 0.07425775. MOD-PAC Corporation's return on assets of last year was 0.0264697. ==> 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.

MOD-PAC Corporation's current net income was 2.28. MOD-PAC Corporation's current cash flow from operations was 6.10. ==> 6.10 > 2.28 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=1.8/33.118
=0.05435111

Gearing (Last Year)=Long-Term Debt/Total Assets
=1.8/30.65
=0.05872757

MOD-PAC Corporation's gearing of this year was 0.05435111. MOD-PAC Corporation's gearing of last year was 0.05872757. ==> This year is lower. ==> 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)=Total Current Assets/Total Current Liabilities
=17.794/2.677
=6.6469929

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=14.431/3.057
=4.72064115

MOD-PAC Corporation's current ratio of this year was 6.6469929. MOD-PAC Corporation's current ratio of last year was 4.72064115. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

MOD-PAC Corporation's number of shares in issue this year was 3.5. MOD-PAC Corporation's number of shares in issue last year was 3.2. ==> There is more 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)=Gross Profit/Revenue
=12.24/60.705
=0.20163084

Gross Margin (Last Year)=Gross Profit/Revenue
=8.895/56.21
=0.15824586

MOD-PAC Corporation's gross margin of this year was 0.20163084. MOD-PAC Corporation's gross margin of last year was 0.15824586. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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 (Jun12)
=60.705/30.65
=1.98058728

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun11)
=56.21/29.921
=1.87861368

MOD-PAC Corporation's asset turnover of this year was 1.98058728. MOD-PAC Corporation's asset turnover of last year was 1.87861368. ==> 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+1+0+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

MOD-PAC Corporation 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


Historical Data

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

MOD-PAC Corporation Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
Q1 110000111
Q2 101011111
Q3 110010110
Q4 101111111
Q5 100001111
Q6 110011101
Q7 111011011
Q8 110011110
Q9 000111110
F-score 853277886

MOD-PAC Corporation Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13
Q1 1111111111
Q2 1111111111
Q3 1001000011
Q4 1111111111
Q5 1111111111
Q6 0100101111
Q7 1111111100
Q8 1001000011
Q9 1111110011
F-score 8768766688
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