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Marvell Technology Group Ltd (NAS:MRVL)
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

Marvell Technology Group Ltd has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

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

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 (Apr16) TTM:Last Year (Apr15) TTM:
Net Income was -771.94 + -57.75 + 4.2 + -22.679 = $-848 Mil.
Cash Flow from Operations was 26.584 + 66.594 + 53.306 + -609.601 = $-463 Mil.
Revenue was 710.492 + 674.89 + 616.158 + 540.822 = $2,542 Mil.
Gross Profit was 248.773 + 295.636 + 313.548 + 281.612 = $1,140 Mil.
Average Total Assets from the begining of this year (Apr15)
to the end of this year (Apr16) was
(5842.049 + 5665.956 + 5506.524 + 5442.127 + 4657.121) / 5 = $5422.7554 Mil.
Total Assets at the begining of this year (Apr15) was $5,842 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $2,150 Mil.
Total Current Liabilities was $485 Mil.
Net Income was 138.87 + 115.304 + 81.693 + 14.09 = $350 Mil.

Revenue was 961.545 + 930.136 + 857.452 + 724.288 = $3,473 Mil.
Gross Profit was 483.804 + 475.162 + 440.321 + 373.135 = $1,772 Mil.
Average Total Assets from the begining of last year (Apr14)
to the end of last year (Apr15) was
(5682.972 + 5865.694 + 5848.807 + 5884.387 + 5842.049) / 5 = $5824.7818 Mil.
Total Assets at the begining of last year (Apr14) was $5,683 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $3,326 Mil.
Total Current Liabilities was $616 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.

Marvell Technology Group Ltd's current net income (TTM) was -848. ==> 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.

Marvell Technology Group Ltd's current cash flow from operations (TTM) was -463. ==> Negative ==> Score 0.

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 (Apr15)
=-848.169/5842.049
=-0.14518348

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Apr14)
=349.957/5682.972
=0.06157993

Marvell Technology Group Ltd's return on assets of this year was -0.14518348. Marvell Technology Group Ltd's return on assets of last year was 0.06157993. ==> 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.

Marvell Technology Group Ltd's current net income (TTM) was -848. Marvell Technology Group Ltd's current cash flow from operations (TTM) was -463. ==> -463 > -848 ==> 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: Apr16)=Long-Term Debt/Average Total Assets from Apr15 to Apr16
=0/5422.7554
=0

Gearing (Last Year: Apr15)=Long-Term Debt/Average Total Assets from Apr14 to Apr15
=0/5824.7818
=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.

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: Apr16)=Total Current Assets/Total Current Liabilities
=2149.776/484.699
=4.43528045

Current Ratio (Last Year: Apr15)=Total Current Assets/Total Current Liabilities
=3325.739/616.488
=5.39465326

Marvell Technology Group Ltd's current ratio of this year was 4.43528045. Marvell Technology Group Ltd's current ratio of last year was 5.39465326. ==> 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.

Marvell Technology Group Ltd's number of shares in issue this year was 508.8. Marvell Technology Group Ltd's number of shares in issue last year was 527.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=1139.569/2542.362
=0.44823239

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1772.422/3473.421
=0.51028136

Marvell Technology Group Ltd's gross margin of this year was 0.44823239. Marvell Technology Group Ltd's gross margin of last year was 0.51028136. ==> 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 (Apr15)
=2542.362/5842.049
=0.43518327

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Apr14)
=3473.421/5682.972
=0.61119798

Marvell Technology Group Ltd's asset turnover of this year was 0.43518327. Marvell Technology Group Ltd's asset turnover of last year was 0.61119798. ==> 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+0+0+1+1+0+1+0+0
=3

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

Marvell Technology Group Ltd 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.

Marvell Technology Group Ltd Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Question 1 0011111110
Question 2 1111111111
Question 3 0011100110
Question 4 1111111111
Question 5 0111111011
Question 6 0111100110
Question 7 1000011101
Question 8 0011100000
Question 9 1110101110
F-score 4587856774

Marvell Technology Group Ltd Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
Question 1 1111110000
Question 2 1111111110
Question 3 1111100000
Question 4 1111111111
Question 5 0111111111
Question 6 1011110000
Question 7 1000001111
Question 8 0000010000
Question 9 1111100000
F-score 7677764443
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