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Mylan NV (NAS:MYL)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, 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

Mylan NV has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

MYL' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 9
Current: 7

2
9

During the past 13 years, the highest Piotroski F-Score of Mylan NV was 9. The lowest was 2. And the median was 6.


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 (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was 189.2 + 56.6 + 167.8 + 428.6 = $842 Mil.
Cash Flow from Operations was 126.6 + 267 + 114.7 + 974.8 = $1,483 Mil.
Revenue was 2082.7 + 1871.7 + 2371.7 + 2695.2 = $9,021 Mil.
Gross Profit was 969 + 830.1 + 1008.1 + 1315.3 = $4,123 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(15174.1 + 15886.6 + 22123.8 + 22794.6 + 21316.5) / 5 = $19459.12 Mil.
Total Assets at the begining of this year (Sep14) was $15,174 Mil.
Long-Term Debt was $5,846 Mil.
Total Current Assets was $6,486 Mil.
Total Current Liabilities was $3,684 Mil.
Net Income was 180.2 + 115.9 + 125.2 + 499.1 = $920 Mil.

Revenue was 1808.5 + 1715.6 + 1837.3 + 2084 = $7,445 Mil.
Gross Profit was 795.9 + 737.8 + 808.8 + 1012.4 = $3,355 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(12901.574 + 15294.8 + 15355 + 15602.8 + 15174.1) / 5 = $14865.6548 Mil.
Total Assets at the begining of last year (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.

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.

Mylan NV's current net income (TTM) was 842. ==> 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.

Mylan NV's current cash flow from operations (TTM) was 1,483. ==> 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 (Sep14)
=842.2/15174.1
=0.05550247

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=920.4/12901.574
=0.07134013

Mylan NV's return on assets of this year was 0.05550247. Mylan NV's return on assets of last year was 0.07134013. ==> Last year is higher ==> Score 0.

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.

Mylan NV's current net income (TTM) was 842. Mylan NV's current cash flow from operations (TTM) was 1,483. ==> 1,483 > 842 ==> 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: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=5845.8/19459.12
=0.30041441

Gearing (Last Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=5723.5/14865.6548
=0.38501499

Mylan NV's gearing of this year was 0.30041441. Mylan NV's gearing of last year was 0.38501499. ==> This year is lower or equal to last year. ==> Score 1.

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: Sep15)=Total Current Assets/Total Current Liabilities
=6485.9/3684.1
=1.76051139

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=5817.8/4473.9
=1.30038669

Mylan NV's current ratio of this year was 1.76051139. Mylan NV's current ratio of last year was 1.30038669. ==> 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.

Mylan NV's number of shares in issue this year was 514. Mylan NV's number of shares in issue last year was 397.3. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=4122.5/9021.3
=0.45697405

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3354.9/7445.4
=0.45060037

Mylan NV's gross margin of this year was 0.45697405. Mylan NV's gross margin of last year was 0.45060037. ==> 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 (Sep14)
=9021.3/15174.1
=0.59451961

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=7445.4/12901.574
=0.57709238

Mylan NV's asset turnover of this year was 0.59451961. Mylan NV's asset turnover of last year was 0.57709238. ==> 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+0+1+1+1+0+1+1
=7

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

Mylan NV has an F-score of 7. 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.

Mylan NV Annual Data

Mar06Mar07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1101111111
Question 2 1111111111
Question 3 0111111010
Question 4 1111111111
Question 5 0010110011
Question 6 0010101001
Question 7 1100001100
Question 8 1101011110
Question 9 0101111001
F-score 5756778566

Mylan NV Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0010111100
Question 4 1111111111
Question 5 0000111111
Question 6 0000000011
Question 7 1110000000
Question 8 1111111110
Question 9 0010000011
F-score 5574666676
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