Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
BNC Bancorp has an F-score of 6 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for BNC Bancorp's Piotroski F-Score or its related term are showing as below:
BNC Bancorp Piotroski F-Score Historical Data
The historical data trend for BNC Bancorp's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
This Year (Mar17) TTM:
Last Year (Mar16) TTM:
Net Income was 14.647 + 18.14 + 15.691 + 14.431 = $62.9 Mil. Cash Flow from Operations was 1.085 + 24.225 + 2.888 + 46.187 = $74.4 Mil. Revenue was 58.945 + 65.228 + 71.023 + 74.434 = $269.6 Mil.
Average Total Assets from the begining of this year (Mar16)
to the end of this year (Mar17) was
(5699.573 + 6478.373 + 6801.562 + 7401.691 + 7575.342) / 5 = $6791.3082 Mil. Total Assets at the begining of this year (Mar16) was $5,699.6 Mil. Long-Term Debt & Capital Lease Obligation was $191.4 Mil. Total Assets was $7,575.3 Mil. Total Liabilities was $6,658.7 Mil.
Net Income was 11.014 + 11.939 + 12.739 + 14.435 = $50.1 Mil.
Revenue was 47.426 + 55.428 + 57.026 + 56.452 = $216.3 Mil.
Average Total Assets from the begining of last year (Mar15)
to the end of last year (Mar16) was
(4173.463 + 4278.588 + 5201.118 + 5666.956 + 5699.573) / 5 = $5003.9396 Mil. Total Assets at the begining of last year (Mar15) was $4,173.5 Mil. Long-Term Debt & Capital Lease Obligation was $188.3 Mil. Total Assets was $5,699.6 Mil. Total Liabilities was $5,096.0 Mil.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
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.
BNC Bancorp's current Net Income (TTM) was 62.9.
==> 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.
BNC Bancorp's return on assets of this year was 0.01103749. BNC Bancorp's return on assets of last year was 0.01201089.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
BNC Bancorp's gearing of this year was 0.02819015. BNC Bancorp's gearing of last year was 0.03763115.
==> 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
* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.
BNC Bancorp's current ratio of this year was 1.13766012. BNC Bancorp's current ratio of last year was 1.11843615.
==> 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.
BNC Bancorp's number of shares in issue this year was 52.357. BNC Bancorp's number of shares in issue last year was 40.885.
==> 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.
* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.
BNC Bancorp's net margin of this year was 0.23331603. BNC Bancorp's net margin of last year was 0.23171329.
==> This year's net 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
BNC Bancorp's asset turnover of this year was 0.04730705. BNC Bancorp's asset turnover of last year was 0.05183513.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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6
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
BNC Bancorp has an F-score of 6 indicating the company's financial situation is typical for a stable company.
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.
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.
BNC Bancorp Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of BNC Bancorp's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
BNC Bancorp was formed in 2002 to serve as a one-bank holding company for Bank of North Carolina, BNC. BNC is a full service commercial bank, incorporated under the laws of the State of North Carolina on November 15, 1991. The Bank is a full service commercial bank. It is engaged in the business of attracting deposits from the general public and using such deposits, together with other funding from its lines of credit, to make mainly consumer and commercial loans. Specifically, the Bank makes business loans secured by real estate, personal property and accounts receivable; unsecured business loans; consumer loans, which are secured by consumer products, such as automobiles and boats; unsecured consumer loans; commercial real estate loans; and other loans. It also offers a range of banking services, including checking and savings accounts, commercial, installment and personal loans, safe deposit boxes, and other associated services. Deposits are the main source of the Bank's funds for lending and other investment purposes. The Bank attracts both short-term and long-term deposits from the general public locally and out-of-state by offering a number of accounts and rates. It offers statement savings accounts, negotiable order of withdrawal accounts, money market demand accounts, noninterest-bearing accounts, and fixed interest rate certificates with varying maturities. Its operations are managed along two operating segments consisting of banking operations and mortgage origination. The purpose of the mortgage origination operating segment is the origination and subsequent sale of residential mortgage loans, while all other banking activities are performed in the banking operations segment. BNC is also subject to certain regulations of the Federal Reserve governing the reserves to be maintained against deposits and other matters.
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