Switch to:
Mylan Inc (NAS:MYL)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

Mylan Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

MYL' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 6

2
9

During the past 13 years, the highest Piotroski F-Score of Mylan Inc was 9. The lowest was 2. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 180.211 + 115.9 + 125.2 + 499.1 = $920 Mil.
Cash Flow from Operations was 417.863 + 268.1 + 179.4 + 440.7 = $1,306 Mil.
Revenue was 1808.543 + 1715.6 + 1837.3 + 2084 = $7,445 Mil.
Gross Profit was 795.943 + 737.8 + 808.8 + 1012.4 = $3,355 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(12901.574 + 15236.341 + 15355 + 15602.8 + 15174.1) / 5 = $14,854 Mil.
Total Assets as of Sep13 was $12,902 Mil.
Long-Term Debt was $5,724 Mil.
Total Current Assets was $5,818 Mil.
Total Current Liabilities was $4,474 Mil.
Net Income was 161.964 + 106.9 + 177.7 + 158.9 = $605 Mil.

Revenue was 1722.854 + 1631.5 + 1701.7 + 1767.4 = $6,823 Mil.
Gross Profit was 742.316 + 693.5 + 742.4 + 808.5 = $2,987 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(11706.418 + 11931.897 + 11885.032 + 12211.711 + 12901.574) / 5 = $12,127 Mil.
Total Assets as of Sep12 was $11,706 Mil.
Long-Term Debt was $5,779 Mil.
Total Current Assets was $4,343 Mil.
Total Current Liabilities was $2,561 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Mylan Inc's current net income (ttm) was 920. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Mylan Inc's current cash flow from operations (ttm) was 1,306. ==> 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 (TTM)/Beginning of This Year Total Assets (Sep13)
=920.411/12901.574
=0.07134099

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=605.464/11706.418
=0.05172069

Mylan Inc's return on assets of this year was 0.07134099. Mylan Inc's return on assets of last year was 0.05172069. ==> 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.

Mylan Inc's current net income (ttm) was 920. Mylan Inc's current cash flow from operations (ttm) was 1,306. ==> 1,306 > 920 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=5723.5/14853.963
=0.38531805

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=5779.438/12127.3264
=0.47656324

Mylan Inc's gearing of this year was 0.38531805. Mylan Inc's gearing of last year was 0.47656324. ==> This year is lower or equal to last year. ==> Score 1.

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: Sep14)=Total Current Assets/Total Current Liabilities
=5817.8/4473.9
=1.30038669

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=4343.167/2561.423
=1.69560709

Mylan Inc's current ratio of this year was 1.30038669. Mylan Inc's current ratio of last year was 1.69560709. ==> Last year's current ratio is higher ==> Score 0.

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.

Mylan Inc's number of shares in issue this year was 397.3. Mylan Inc's number of shares in issue last year was 395.5. ==> 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: TTM)=Gross Profit/Revenue
=3354.943/7445.443
=0.45060354

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2986.716/6823.454
=0.43771322

Mylan Inc's gross margin of this year was 0.45060354. Mylan Inc's gross margin of last year was 0.43771322. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by begining of the year total assets) 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)/Beginning of This Year Total Assets (Sep13)
=7445.443/12901.574
=0.57709571

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=6823.454/11706.418
=0.58288146

Mylan Inc's asset turnover of this year was 0.57709571. Mylan Inc's asset turnover of last year was 0.58288146. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+0+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Mylan Inc has an F-score of 6 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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mylan Inc Annual Data

Mar04Mar05Mar06Mar07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111011111
Q2 1111111111
Q3 1001011110
Q4 0111111111
Q5 1100010100
Q6 1000001010
Q7 1111000011
Q8 1011010111
Q9 1001101110
F-score 8557366785

Mylan Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 1111100101
Q4 1111111111
Q5 0000000001
Q6 1110100000
Q7 1111111100
Q8 1111111111
Q9 0111100100
F-score 7887855746
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)
Free 7-day Trial
FEEDBACK