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Marvell Technology Group Ltd (NAS:MRVL)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, 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

Marvell Technology Group Ltd has an F-score of 7 indicating the company's financial situation is typical for a stable company.

MRVL' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of Marvell Technology Group Ltd 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 (Oct14) TTM:Last Year (Oct13) TTM:
Net Income was 106.629 + 99.479 + 138.87 + 115.304 = $460 Mil.
Cash Flow from Operations was 100.489 + 235.137 + 156.954 + 194.644 = $687 Mil.
Revenue was 931.749 + 957.83 + 961.545 + 930.136 = $3,781 Mil.
Gross Profit was 463.997 + 463.97 + 483.804 + 475.162 = $1,887 Mil.
Average Total Assets from the begining of this year (Oct13)
to the end of this year (Oct14) was
(5347.956 + 5451.01 + 5682.972 + 5865.694 + 5848.807) / 5 = $5,639 Mil.
Total Assets as of Oct13 was $5,348 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $3,286 Mil.
Total Current Liabilities was $705 Mil.
Net Income was 50.152 + 53.209 + 61.826 + 103.156 = $268 Mil.

Revenue was 775.294 + 734.369 + 807.056 + 931.226 = $3,248 Mil.
Gross Profit was 404.461 + 398.931 + 420.997 + 466.245 = $1,691 Mil.
Average Total Assets from the begining of last year (Oct12)
to the end of last year (Oct13) was
(5425.954 + 5261.764 + 5121.167 + 5204.244 + 5347.956) / 5 = $5,272 Mil.
Total Assets as of Oct12 was $5,426 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $2,718 Mil.
Total Current Liabilities was $757 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Marvell Technology Group Ltd's current net income (ttm) was 460. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Marvell Technology Group Ltd's current cash flow from operations (ttm) was 687. ==> 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)/Beginning of This Year Total Assets (Oct13)
=460.282/5347.956
=0.0860669

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Oct12)
=268.343/5425.954
=0.04945545

Marvell Technology Group Ltd's return on assets of this year was 0.0860669. Marvell Technology Group Ltd's return on assets of last year was 0.04945545. ==> 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.

Marvell Technology Group Ltd's current net income (ttm) was 460. Marvell Technology Group Ltd's current cash flow from operations (ttm) was 687. ==> 687 > 460 ==> 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: Oct14)=Long-Term Debt/Average Total Assets from Oct13 to Oct14
=0/5639.2878
=0

Gearing (Last Year: Oct13)=Long-Term Debt/Average Total Assets from Oct12 to Oct13
=0/5272.217
=0

Marvell Technology Group Ltd's gearing of this year was 0. Marvell Technology Group Ltd's gearing of last year was 0. ==> 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: Oct14)=Total Current Assets/Total Current Liabilities
=3286.362/705.408
=4.65881022

Current Ratio (Last Year: Oct13)=Total Current Assets/Total Current Liabilities
=2717.659/756.972
=3.5901711

Marvell Technology Group Ltd's current ratio of this year was 4.65881022. Marvell Technology Group Ltd's current ratio of last year was 3.5901711. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Marvell Technology Group Ltd's number of shares in issue this year was 519.9. Marvell Technology Group Ltd's number of shares in issue last year was 501.2. ==> 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
=1886.933/3781.26
=0.49902228

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1690.634/3247.945
=0.52052421

Marvell Technology Group Ltd's gross margin of this year was 0.49902228. Marvell Technology Group Ltd's gross margin of last year was 0.52052421. ==> 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 begining of the year total assets) 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)/Beginning of This Year Total Assets (Oct13)
=3781.26/5347.956
=0.7070477

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Oct12)
=3247.945/5425.954
=0.59859427

Marvell Technology Group Ltd's asset turnover of this year was 0.7070477. Marvell Technology Group Ltd's asset turnover of last year was 0.59859427. ==> 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+0+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Marvell Technology Group Ltd has an F-score of 7 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, 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.

Marvell Technology Group Ltd Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Q1 1100111111
Q2 1111111111
Q3 1100111001
Q4 1111111111
Q5 1001111111
Q6 1001111001
Q7 0010000111
Q8 0100111000
Q9 1111101011
F-score 7645878568

Marvell Technology Group Ltd Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Q1 1111111111
Q2 1111111111
Q3 0000001111
Q4 1111111111
Q5 1111111111
Q6 0000001011
Q7 1111111000
Q8 0000000000
Q9 0010011111
F-score 5565568677
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