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Neptune Technologies & Bioressources Inc. (NAS:NEPT)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Neptune Technologies & Bioressources Inc. has an F-score of 3 indicating the company's financial situation is typical for a stable company.

NEPT' s 10-Year Piotroski F-Score Range
Min: 2   Max: 6
Current: 3

2
6

During the past 13 years, the highest Piotroski F-Score of Neptune Technologies & Bioressources Inc. was 6. The lowest was 2. And the median was 4.


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 (Nov13) TTM:Last Year (Nov12) TTM:
Net Income was -8.26785714286 + -3.45261121857 + -4.33171677983 + -0.21875 = $-16.27 Mil.
Cash Flow from Operations was -7.60714285714 + 1.75531914894 + -8.74393792435 + 4.982421875 = $-9.61 Mil.
Revenue was 4.13157894737 + 5.17021276596 + 5.90688651794 + 4.4833984375 = $19.69 Mil.
Gross Profit was 0.501879699248 + 0.625725338491 + 0.586808923375 + 0.22265625 = $1.94 Mil.
Total Assets at the begining of this year (Nov12) was $75.64 Mil.
Total Assets was $59.90 Mil.
Long-Term Debt was $1.87 Mil.
Total Current Assets was $31.84 Mil.
Total Current Liabilities was $11.92 Mil.
Net Income was -11.7858585859 + -3.98261758691 + -0.956225680934 + 0.495975855131 = $-16.23 Mil.

Revenue was 7.09797979798 + 8.27914110429 + 5.98054474708 + 5.38631790744 = $26.74 Mil.
Gross Profit was 3.37373737374 + 3.12167689162 + 3.51070038911 + 2.89034205231 = $12.90 Mil.
Total Assets at the begining of last year (Nov11) was $38.86 Mil.
Total Assets was $75.64 Mil.
Long-Term Debt was $4.01 Mil.
Total Current Assets was $57.48 Mil.
Total Current Liabilities was $14.60 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.

Neptune Technologies & Bioressources Inc.'s current net income was -16.27. ==> Negative ==> Score 0.

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.

Neptune Technologies & Bioressources Inc.'s current cash flow from operations was -9.61. ==> Negative ==> Score 0.

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 (Nov12)
=-16.2709351413/75.6353535354
=-0.21512341

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Nov11)
=-16.2287259986/38.85546875
=-0.41766903

Neptune Technologies & Bioressources Inc.'s return on assets of this year was -0.21512341. Neptune Technologies & Bioressources Inc.'s return on assets of last year was -0.41766903. ==> 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.

Neptune Technologies & Bioressources Inc.'s current net income was -16.27. Neptune Technologies & Bioressources Inc.'s current cash flow from operations was -9.61. ==> -9.61 > -16.27 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=1.87312030075/59.8994360902
=0.03127108

Gearing (Last Year)=Long-Term Debt/Total Assets
=4.00909090909/75.6353535354
=0.05300552

Neptune Technologies & Bioressources Inc.'s gearing of this year was 0.03127108. Neptune Technologies & Bioressources Inc.'s gearing of last year was 0.05300552. ==> This year is lower. ==> 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)=Total Current Assets/Total Current Liabilities
=31.837406015/11.9154135338
=2.67195141

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=57.4787878788/14.603030303
=3.93608632

Neptune Technologies & Bioressources Inc.'s current ratio of this year was 2.67195141. Neptune Technologies & Bioressources Inc.'s current ratio of last year was 3.93608632. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Neptune Technologies & Bioressources Inc.'s number of shares in issue this year was 61.1. Neptune Technologies & Bioressources Inc.'s number of shares in issue last year was 56.7. ==> There is more 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
=1.93707021111/19.6920766688
=0.098368

Gross Margin (Last Year)=Gross Profit/Revenue
=12.8964567068/26.7439835568
=0.48221899

Neptune Technologies & Bioressources Inc.'s gross margin of this year was 0.098368. Neptune Technologies & Bioressources Inc.'s gross margin of last year was 0.48221899. ==> 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 (Nov12)
=19.6920766688/75.6353535354
=0.26035545

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Nov11)
=26.7439835568/38.85546875
=0.68829394

Neptune Technologies & Bioressources Inc.'s asset turnover of this year was 0.26035545. Neptune Technologies & Bioressources Inc.'s asset turnover of last year was 0.68829394. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+0+1+1+1+0+0+0+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Neptune Technologies & Bioressources Inc. has an F-score of 3 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.

Neptune Technologies & Bioressources Inc. Annual Data

May03May04May05May06May07May08Feb10Feb11Feb12Feb13
Q1 000000000
Q2 001000000
Q3 111001110
Q4 111111001
Q5 011110111
Q6 011100111
Q7 000000000
Q8 110100100
Q9 111001100
F-score 466423533

Neptune Technologies & Bioressources Inc. Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
Q1 0000000000
Q2 0000000000
Q3 0011100001
Q4 0000011111
Q5 1111111111
Q6 1110001110
Q7 0000000000
Q8 1101000000
Q9 0000000000
F-score 3333223333
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