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Mettler-Toledo International Inc (NYSE:MTD)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

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

Mettler-Toledo International Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

MTD' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 8

4
9

During the past 13 years, the highest Piotroski F-Score of Mettler-Toledo International Inc was 9. The lowest was 4. And the median was 7.


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 63.051 + 77.557 + 88.861 + 123.351 = $353 Mil.
Cash Flow from Operations was 58.596 + 105.189 + 126.041 + 137.042 = $427 Mil.
Revenue was 535.701 + 582.057 + 604.154 + 673.535 = $2,395 Mil.
Gross Profit was 298.805 + 322.912 + 339.529 + 390.747 = $1,352 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(2009.11 + 1975.665 + 2096.949 + 2053.546 + 2018.485) / 5 = $2030.751 Mil.
Total Assets at the begining of this year (Dec14) was $2,009 Mil.
Long-Term Debt was $577 Mil.
Total Current Assets was $863 Mil.
Total Current Liabilities was $595 Mil.
Net Income was 58.051 + 74.022 + 84.996 + 121.172 = $338 Mil.

Revenue was 550.621 + 608.834 + 629.1 + 697.428 = $2,486 Mil.
Gross Profit was 292.641 + 328.176 + 343.551 + 394.382 = $1,359 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(2152.819 + 2135.137 + 2143.42 + 2107.455 + 2009.11) / 5 = $2109.5882 Mil.
Total Assets at the begining of last year (Dec13) was $2,153 Mil.
Long-Term Debt was $336 Mil.
Total Current Assets was $849 Mil.
Total Current Liabilities was $679 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.

Mettler-Toledo International Inc's current net income (TTM) was 353. ==> 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.

Mettler-Toledo International Inc's current cash flow from operations (TTM) was 427. ==> 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)
=352.82/2009.11
=0.1756101

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=338.241/2152.819
=0.15711539

Mettler-Toledo International Inc's return on assets of this year was 0.1756101. Mettler-Toledo International Inc's return on assets of last year was 0.15711539. ==> This year is higher. ==> Score 1.

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.

Mettler-Toledo International Inc's current net income (TTM) was 353. Mettler-Toledo International Inc's current cash flow from operations (TTM) was 427. ==> 427 > 353 ==> 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
=576.984/2030.751
=0.28412346

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=335.79/2109.5882
=0.15917325

Mettler-Toledo International Inc's gearing of this year was 0.28412346. Mettler-Toledo International Inc's gearing of last year was 0.15917325. ==> Last year is lower than this year ==> Score 0.

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
=862.815/595.127
=1.44979979

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=849.43/678.89
=1.25120417

Mettler-Toledo International Inc's current ratio of this year was 1.44979979. Mettler-Toledo International Inc's current ratio of last year was 1.25120417. ==> This year's current ratio is higher. ==> Score 1.

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.

Mettler-Toledo International Inc's number of shares in issue this year was 28.3. Mettler-Toledo International Inc's number of shares in issue last year was 29.6. ==> 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
=1351.993/2395.447
=0.56440113

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1358.75/2485.983
=0.54656448

Mettler-Toledo International Inc's gross margin of this year was 0.56440113. Mettler-Toledo International Inc's gross margin of last year was 0.54656448. ==> 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)
=2395.447/2009.11
=1.19229261

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=2485.983/2152.819
=1.15475709

Mettler-Toledo International Inc's asset turnover of this year was 1.19229261. Mettler-Toledo International Inc's asset turnover of last year was 1.15475709. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

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

Mettler-Toledo International Inc 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.

Mettler-Toledo International Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1110101111
Question 4 1111111111
Question 5 1001011010
Question 6 0010100101
Question 7 1111111111
Question 8 1111111111
Question 9 0110101101
F-score 7786868878

Mettler-Toledo International Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1111111111
Question 4 1111111111
Question 5 0001111000
Question 6 1110000111
Question 7 1111111111
Question 8 1111111111
Question 9 1111100001
F-score 8888877778
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