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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: 4   Max: 8
Current: 7

4
8

During the past 13 years, the highest Piotroski F-Score of Marvell Technology Group, Ltd. was 8. The lowest was 4. 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 (Jan14) TTM:Last Year (Jan13) TTM:
Net Income was 97.129 + 103.156 + 61.826 + 53.209 = $315 Mil.
Cash Flow from Operations was 100.489 + 177.199 + 86.496 + 83.855 = $448 Mil.
Revenue was 931.749 + 931.226 + 807.056 + 734.369 = $3,404 Mil.
Gross Profit was 454.497 + 466.245 + 420.997 + 398.931 = $1,741 Mil.
Total Assets at the begining of this year (Jan13) was $5,262 Mil.
Total Assets was $5,451 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $2,839 Mil.
Total Current Liabilities was $651 Mil.
Net Income was 50.152 + 68.816 + 93.074 + 94.543 = $307 Mil.

Revenue was 775.294 + 780.881 + 816.104 + 796.351 = $3,169 Mil.
Gross Profit was 404.461 + 406.378 + 434.265 + 430.029 = $1,675 Mil.
Total Assets at the begining of last year (Jan12) was $5,768 Mil.
Total Assets was $5,262 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $2,585 Mil.
Total Current Liabilities was $608 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.

Marvell Technology Group, Ltd.'s current net income was 315. ==> 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.

Marvell Technology Group, Ltd.'s current cash flow from operations was 448. ==> 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 (Jan13)
=315.32/5261.764
=0.05992667

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jan12)
=306.585/5767.619
=0.05315625

Marvell Technology Group, Ltd.'s return on assets of this year was 0.05992667. Marvell Technology Group, Ltd.'s return on assets of last year was 0.05315625. ==> 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 was 315. Marvell Technology Group, Ltd.'s current cash flow from operations was 448. ==> 448 > 315 ==> 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
=0/5451.01
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/5261.764
=0

Marvell Technology Group, Ltd.'s gearing of this year was 0. Marvell Technology Group, Ltd.'s gearing of last year was 0. ==> Last year is lower ==> 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)=Total Current Assets/Total Current Liabilities
=2839.22/651.306
=4.35927199

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2585.346/607.888
=4.25299726

Marvell Technology Group, Ltd.'s current ratio of this year was 4.35927199. Marvell Technology Group, Ltd.'s current ratio of last year was 4.25299726. ==> 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.

Marvell Technology Group, Ltd.'s number of shares in issue this year was 510.4. Marvell Technology Group, Ltd.'s number of shares in issue last year was 528.1. ==> There is the same number of shares in issue this year, or fewer. ==> Score 1.

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
=1740.67/3404.4
=0.51130008

Gross Margin (Last Year)=Gross Profit/Revenue
=1675.133/3168.63
=0.5286616

Marvell Technology Group, Ltd.'s gross margin of this year was 0.51130008. Marvell Technology Group, Ltd.'s gross margin of last year was 0.5286616. ==> Last year's gross margin is higher ==> Score 0.

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 (Jan13)
=3404.4/5261.764
=0.64700735

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jan12)
=3168.63/5767.619
=0.54938268

Marvell Technology Group, Ltd.'s asset turnover of this year was 0.64700735. Marvell Technology Group, Ltd.'s asset turnover of last year was 0.54938268. ==> 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+0+1+1+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


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 1001111000
Q6 1001111001
Q7 0010000111
Q8 0100111000
Q9 1111101011
F-score 7645878457

Marvell Technology Group, Ltd. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
Q1 1111111111
Q2 1111111111
Q3 0000000001
Q4 1111111111
Q5 0000000000
Q6 0000000001
Q7 1111111111
Q8 0000000000
Q9 0000010011
F-score 4444454457
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