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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 = 8 or 9
Bad or low score = 0 or 1

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 10-Year Piotroski F-Score Range
Min: 5   Max: 9
Current: 8

5
9

During the past 13 years, the highest Piotroski F-Score of Mettler-Toledo International, Inc. was 9. The lowest was 5. 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 110.162 + 74.326 + 69.062 + 52.544 = $306 Mil.
Cash Flow from Operations was 108.513 + 122.783 + 90.96 + 23.672 = $346 Mil.
Revenue was 684.253 + 591.686 + 578.68 + 524.353 = $2,379 Mil.
Gross Profit was 375.357 + 318.573 + 308.843 + 279.253 = $1,282 Mil.
Total Assets at the begining of this year (Dec12) was $2,022 Mil.
Total Assets was $2,153 Mil.
Long-Term Debt was $396 Mil.
Total Current Assets was $914 Mil.
Total Current Liabilities was $564 Mil.
Net Income was 104.633 + 72.183 + 61.704 + 52.327 = $291 Mil.

Revenue was 657.292 + 578.553 + 570.283 + 535.4 = $2,342 Mil.
Gross Profit was 356.788 + 308.157 + 299.008 + 277.102 = $1,241 Mil.
Total Assets at the begining of last year (Dec11) was $2,203 Mil.
Total Assets was $2,022 Mil.
Long-Term Debt was $347 Mil.
Total Current Assets was $864 Mil.
Total Current Liabilities was $562 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.

Mettler-Toledo International, Inc.'s current net income was 306. ==> 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.

Mettler-Toledo International, Inc.'s current cash flow from operations was 346. ==> 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 (Dec12)
=306.094/2022.288
=0.15136024

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=290.847/2203.474
=0.13199475

Mettler-Toledo International, Inc.'s return on assets of this year was 0.15136024. Mettler-Toledo International, Inc.'s return on assets of last year was 0.13199475. ==> 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.

Mettler-Toledo International, Inc.'s current net income was 306. Mettler-Toledo International, Inc.'s current cash flow from operations was 346. ==> 346 > 306 ==> 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
=395.96/2152.819
=0.18392628

Gearing (Last Year)=Long-Term Debt/Total Assets
=347.131/2022.288
=0.1716526

Mettler-Toledo International, Inc.'s gearing of this year was 0.18392628. Mettler-Toledo International, Inc.'s gearing of last year was 0.1716526. ==> 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
=913.987/564.188
=1.62000432

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=864.237/561.994
=1.53780467

Mettler-Toledo International, Inc.'s current ratio of this year was 1.62000432. Mettler-Toledo International, Inc.'s current ratio of last year was 1.53780467. ==> 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.

Mettler-Toledo International, Inc.'s number of shares in issue this year was 30.4. Mettler-Toledo International, Inc.'s number of shares in issue last year was 31.3. ==> 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
=1282.026/2378.972
=0.53889915

Gross Margin (Last Year)=Gross Profit/Revenue
=1241.055/2341.528
=0.53001929

Mettler-Toledo International, Inc.'s gross margin of this year was 0.53889915. Mettler-Toledo International, Inc.'s gross margin of last year was 0.53001929. ==> This year's gross margin is higher. ==> Score 1.

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 (Dec12)
=2378.972/2022.288
=1.17637646

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=2341.528/2203.474
=1.06265288

Mettler-Toledo International, Inc.'s asset turnover of this year was 1.17637646. Mettler-Toledo International, Inc.'s asset turnover of last year was 1.06265288. ==> 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+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1011101011
Q4 1111111111
Q5 1010010110
Q6 1100101001
Q7 1111111111
Q8 1111111111
Q9 1001101011
F-score 9677868688

Mettler-Toledo International, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1000011111
Q4 0111111111
Q5 0111111110
Q6 1000001111
Q7 1111111111
Q8 1100111111
Q9 1000011111
F-score 7655689998
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