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NGL Energy Partners LP (NYSE:NGL)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

NGL Energy Partners LP has an F-score of 5 indicating the company's financial situation is typical for a stable company.

NGL' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 7
Current: 5

3
7

During the past 8 years, the highest Piotroski F-Score of NGL Energy Partners LP was 7. The lowest was 3. And the median was 5.


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 (Jun16) TTM:Last Year (Jun15) TTM:
Net Income was -27.043 + 23.481 + -340.063 + 176.92 = $-167 Mil.
Cash Flow from Operations was 92.266 + 119.039 + 58.361 + -71.422 = $198 Mil.
Revenue was 3193.195 + 2685.006 + 2325.44 + 2721.97 = $10,926 Mil.
Gross Profit was 187.369 + 251.506 + 248.28 + 155.53 = $843 Mil.
Average Total Assets from the begining of this year (Jun15)
to the end of this year (Jun16) was
(6642.651 + 6449.837 + 6564.471 + 5560.155 + 6002.782) / 5 = $6243.9792 Mil.
Total Assets at the begining of this year (Jun15) was $6,643 Mil.
Long-Term Debt was $2,867 Mil.
Total Current Assets was $1,269 Mil.
Total Current Liabilities was $870 Mil.
Net Income was -19.224 + -10.918 + 157.616 + -29.357 = $98 Mil.

Revenue was 5380.526 + 4552.146 + 3220.771 + 3538.469 = $16,692 Mil.
Gross Profit was 201.061 + 240.478 + 287.75 + 215.918 = $945 Mil.
Average Total Assets from the begining of last year (Jun14)
to the end of last year (Jun15) was
(4265.502 + 6551.679 + 6905.902 + 6655.792 + 6642.651) / 5 = $6204.3052 Mil.
Total Assets at the begining of last year (Jun14) was $4,266 Mil.
Long-Term Debt was $2,968 Mil.
Total Current Assets was $1,587 Mil.
Total Current Liabilities was $1,089 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.

NGL Energy Partners LP's current net income (TTM) was -167. ==> Negative ==> Score 0.

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.

NGL Energy Partners LP's current cash flow from operations (TTM) was 198. ==> 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 (Jun15)
=-166.705/6642.651
=-0.02509616

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=98.117/4265.502
=0.02300245

NGL Energy Partners LP's return on assets of this year was -0.02509616. NGL Energy Partners LP's return on assets of last year was 0.02300245. ==> 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.

NGL Energy Partners LP's current net income (TTM) was -167. NGL Energy Partners LP's current cash flow from operations (TTM) was 198. ==> 198 > -167 ==> 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: Jun16)=Long-Term Debt/Average Total Assets from Jun15 to Jun16
=2866.85/6243.9792
=0.4591383

Gearing (Last Year: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=2968.069/6204.3052
=0.47838862

NGL Energy Partners LP's gearing of this year was 0.4591383. NGL Energy Partners LP's gearing of last year was 0.47838862. ==> 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: Jun16)=Total Current Assets/Total Current Liabilities
=1269.097/869.645
=1.45932766

Current Ratio (Last Year: Jun15)=Total Current Assets/Total Current Liabilities
=1587.395/1088.7
=1.45806466

NGL Energy Partners LP's current ratio of this year was 1.45932766. NGL Energy Partners LP's current ratio of last year was 1.45806466. ==> 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.

NGL Energy Partners LP's number of shares in issue this year was 128.5. NGL Energy Partners LP's number of shares in issue last year was 103.9. ==> 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
=842.685/10925.611
=0.07712932

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=945.207/16691.912
=0.05662665

NGL Energy Partners LP's gross margin of this year was 0.07712932. NGL Energy Partners LP's gross margin of last year was 0.05662665. ==> 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 (Jun15)
=10925.611/6642.651
=1.64476668

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=16691.912/4265.502
=3.91323507

NGL Energy Partners LP's asset turnover of this year was 1.64476668. NGL Energy Partners LP's asset turnover of last year was 3.91323507. ==> 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
=0+1+0+1+1+1+0+1+0
=5

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

NGL Energy Partners LP has an F-score of 5 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.

NGL Energy Partners LP Annual Data

Mar12Mar13Mar14Mar15Mar16
Question 1 11110
Question 2 11111
Question 3 01000
Question 4 11011
Question 5 11011
Question 6 00110
Question 7 00000
Question 8 11001
Question 9 00000
F-score 56354

NGL Energy Partners LP Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Question 1 1111111100
Question 2 1111111111
Question 3 0100000100
Question 4 0011111111
Question 5 0000101111
Question 6 1111111101
Question 7 0000000000
Question 8 0000011111
Question 9 0111000000
F-score 3555556745
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