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MasTec Inc (NYSE:MTZ)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

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

MasTec Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

MTZ' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 4

2
8

During the past 13 years, the highest Piotroski F-Score of MasTec Inc was 8. The lowest was 2. And the median was 5.


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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 32.05 + 16.023 + 41.501 + 46.138 = $136 Mil.
Cash Flow from Operations was 75.713 + -20.394 + 75.411 + 102.134 = $233 Mil.
Revenue was 1104.556 + 964.029 + 1159.13 + 1269.385 = $4,497 Mil.
Gross Profit was 153.667 + 122.975 + 172.05 + 188.253 = $637 Mil.
Total Assets at the begining of this year (Jun13) was $2,821 Mil.
Total Assets was $3,396 Mil.
Long-Term Debt was $1,089 Mil.
Total Current Assets was $1,490 Mil.
Total Current Liabilities was $868 Mil.
Net Income was 34.941 + 18.37 + 36.341 + 26.821 = $116 Mil.

Revenue was 977.624 + 918.648 + 932.358 + 1067.3 = $3,896 Mil.
Gross Profit was 154.969 + 127.149 + 138.219 + 142.996 = $563 Mil.
Total Assets at the begining of last year (Jun12) was $2,227 Mil.
Total Assets was $2,821 Mil.
Long-Term Debt was $806 Mil.
Total Current Assets was $1,272 Mil.
Total Current Liabilities was $799 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.

MasTec Inc's current net income was 136. ==> 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.

MasTec Inc's current cash flow from operations was 233. ==> 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 (Jun13)
=135.712/2820.906
=0.04810937

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=116.473/2227.322
=0.05229284

MasTec Inc's return on assets of this year was 0.04810937. MasTec Inc's return on assets of last year was 0.05229284. ==> Last year is higher ==> Score 0.

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.

MasTec Inc's current net income was 136. MasTec Inc's current cash flow from operations was 233. ==> 233 > 136 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=1088.666/3395.87
=0.3205853

Gearing (Last Year)=Long-Term Debt/Total Assets
=806.497/2820.906
=0.28589999

MasTec Inc's gearing of this year was 0.3205853. MasTec Inc's gearing of last year was 0.28589999. ==> Last year is lower than this year ==> 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
=1489.652/868.474
=1.71525227

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1272.242/798.608
=1.59307445

MasTec Inc's current ratio of this year was 1.71525227. MasTec Inc's current ratio of last year was 1.59307445. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

MasTec Inc's number of shares in issue this year was 86.7. MasTec Inc's number of shares in issue last year was 84.6. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=636.945/4497.1
=0.14163461

Gross Margin (Last Year)=Gross Profit/Revenue
=563.333/3895.93
=0.14459526

MasTec Inc's gross margin of this year was 0.14163461. MasTec Inc's gross margin of last year was 0.14459526. ==> 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 (Jun13)
=4497.1/2820.906
=1.59420413

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=3895.93/2227.322
=1.74915437

MasTec Inc's asset turnover of this year was 1.59420413. MasTec Inc's asset turnover of last year was 1.74915437. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+1+0+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

MasTec Inc has an F-score of 4 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.

MasTec Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0000111111
Q2 1011111111
Q3 1101101001
Q4 1011011011
Q5 0010001100
Q6 1110010011
Q7 0000000110
Q8 0111111001
Q9 1110101101
F-score 5464557557

MasTec Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 0011111111
Q3 0000011110
Q4 0011111111
Q5 1010000000
Q6 0101111101
Q7 0111000000
Q8 0000111110
Q9 1000011000
F-score 3355577654
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