Switch to:
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: 3   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of Mettler-Toledo International Inc was 9. The lowest was 3. 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 (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was 77.557 + 88.861 + 123.351 + 65.674 = $355 Mil.
Cash Flow from Operations was 105.189 + 126.041 + 137.042 + 35.7 = $404 Mil.
Revenue was 582.057 + 604.154 + 673.535 + 539.674 = $2,399 Mil.
Gross Profit was 322.912 + 339.529 + 390.747 + 299.907 = $1,353 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(1975.665 + 2096.949 + 2053.546 + 2018.485 + 2035.273) / 5 = $2035.9836 Mil.
Total Assets at the begining of this year (Mar15) was $1,976 Mil.
Long-Term Debt was $682 Mil.
Total Current Assets was $867 Mil.
Total Current Liabilities was $545 Mil.
Net Income was 74.022 + 84.996 + 121.172 + 63.051 = $343 Mil.

Revenue was 608.834 + 629.1 + 697.428 + 535.701 = $2,471 Mil.
Gross Profit was 328.176 + 343.551 + 394.382 + 298.805 = $1,365 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(2135.137 + 2143.42 + 2107.455 + 2009.11 + 1975.665) / 5 = $2074.1574 Mil.
Total Assets at the begining of last year (Mar14) was $2,135 Mil.
Long-Term Debt was $409 Mil.
Total Current Assets was $815 Mil.
Total Current Liabilities was $638 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 355. ==> 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 404. ==> 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 (Mar15)
=355.443/1975.665
=0.17991056

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=343.241/2135.137
=0.1607583

Mettler-Toledo International Inc's return on assets of this year was 0.17991056. Mettler-Toledo International Inc's return on assets of last year was 0.1607583. ==> 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 355. Mettler-Toledo International Inc's current cash flow from operations (TTM) was 404. ==> 404 > 355 ==> 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: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=681.872/2035.9836
=0.33491036

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=409.179/2074.1574
=0.19727481

Mettler-Toledo International Inc's gearing of this year was 0.33491036. Mettler-Toledo International Inc's gearing of last year was 0.19727481. ==> 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: Mar16)=Total Current Assets/Total Current Liabilities
=866.699/544.792
=1.59088056

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=814.85/637.703
=1.27778919

Mettler-Toledo International Inc's current ratio of this year was 1.59088056. Mettler-Toledo International Inc's current ratio of last year was 1.27778919. ==> 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 27.4. Mettler-Toledo International Inc's number of shares in issue last year was 28.8. ==> 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
=1353.095/2399.42
=0.56392587

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1364.914/2471.063
=0.55235905

Mettler-Toledo International Inc's gross margin of this year was 0.56392587. Mettler-Toledo International Inc's gross margin of last year was 0.55235905. ==> 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 (Mar15)
=2399.42/1975.665
=1.21448727

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=2471.063/2135.137
=1.15733229

Mettler-Toledo International Inc's asset turnover of this year was 1.21448727. Mettler-Toledo International Inc's asset turnover of last year was 1.15733229. ==> 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

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 1111111111
Question 4 1111111111
Question 5 0011110000
Question 6 1100001111
Question 7 1111111111
Question 8 1111111111
Question 9 1111000011
F-score 8888777788
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK