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GuruFocus has detected 6 Warning Signs with Noble Corp PLC $NE.
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Noble Corp PLC (NYSE:NE)
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

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

NE' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 7

3
9

During the past 13 years, the highest Piotroski F-Score of Noble Corp PLC was 9. The lowest was 3. 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 local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was -152.241 + 105.485 + 322.866 + -55.081 = $221 Mil.
Cash Flow from Operations was 510.126 + 174.801 + 686.756 + 101.118 = $1,473 Mil.
Revenue was 857.684 + 611.973 + 894.783 + 385.153 = $2,750 Mil.
Gross Profit was 544.495 + 344.719 + 636.309 + 168.807 = $1,694 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(13058.018 + 12865.645 + 12454.912 + 12739.444 + 12584.138) / 5 = $12740.4314 Mil.
Total Assets at the begining of this year (Sep15) was $13,058 Mil.
Long-Term Debt was $3,830 Mil.
Total Current Assets was $884 Mil.
Total Current Liabilities was $684 Mil.
Net Income was -609.569 + 178.403 + 159.031 + 325.807 = $54 Mil.

Revenue was 804.74 + 804.342 + 793.555 + 896.671 = $3,299 Mil.
Gross Profit was 400.183 + 462.435 + 456.696 + 585.821 = $1,905 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(13950.197 + 13286.822 + 13157.973 + 13204.716 + 13058.018) / 5 = $13331.5452 Mil.
Total Assets at the begining of last year (Sep14) was $13,950 Mil.
Long-Term Debt was $4,189 Mil.
Total Current Assets was $936 Mil.
Total Current Liabilities was $904 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.

Noble Corp PLC's current net income (TTM) was 221. ==> 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.

Noble Corp PLC's current cash flow from operations (TTM) was 1,473. ==> 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 (Sep15)
=221.029/13058.018
=0.01692669

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=53.672/13950.197
=0.0038474

Noble Corp PLC's return on assets of this year was 0.01692669. Noble Corp PLC's return on assets of last year was 0.0038474. ==> This year is higher. ==> Score 1.

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.

Noble Corp PLC's current net income (TTM) was 221. Noble Corp PLC's current cash flow from operations (TTM) was 1,473. ==> 1,473 > 221 ==> 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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=3830.224/12740.4314
=0.30063535

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=4188.727/13331.5452
=0.31419666

Noble Corp PLC's gearing of this year was 0.30063535. Noble Corp PLC's gearing of last year was 0.31419666. ==> 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: Sep16)=Total Current Assets/Total Current Liabilities
=883.784/684.118
=1.29185901

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=935.877/904.196
=1.03503776

Noble Corp PLC's current ratio of this year was 1.29185901. Noble Corp PLC's current ratio of last year was 1.03503776. ==> 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.

Noble Corp PLC's number of shares in issue this year was 243.2. Noble Corp PLC's number of shares in issue last year was 242. ==> 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
=1694.33/2749.593
=0.6162112

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1905.135/3299.308
=0.57743472

Noble Corp PLC's gross margin of this year was 0.6162112. Noble Corp PLC's gross margin of last year was 0.57743472. ==> 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 (Sep15)
=2749.593/13058.018
=0.21056741

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=3299.308/13950.197
=0.23650619

Noble Corp PLC's asset turnover of this year was 0.21056741. Noble Corp PLC's asset turnover of last year was 0.23650619. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+0
=7

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

Noble Corp PLC 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 local exchange's currency.

Noble Corp PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1110001101
Question 4 1111111111
Question 5 1111000010
Question 6 0111011011
Question 7 1111110011
Question 8 1111001011
Question 9 1100000101
F-score 8987456578

Noble Corp PLC Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1110011111
Question 2 1111111111
Question 3 1000001111
Question 4 1111111111
Question 5 0111100111
Question 6 1110001011
Question 7 0011111000
Question 8 0011111111
Question 9 1100011110
F-score 6675568787
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