Switch to:
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 10-Year Piotroski F-Score Range
Min: 4   Max: 6
Current: 5

4
6

During the past 5 years, the highest Piotroski F-Score of NGL Energy Partners LP was 6. The lowest was 4. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 23.898 + 42.331 + -39.975 + -19.224 = $7 Mil.
Cash Flow from Operations was 113.92 + 20.06 + 9.206 + -70.841 = $72 Mil.
Revenue was 2743.445 + 3975.935 + 3648.614 + 5380.526 = $15,749 Mil.
Gross Profit was 167.416 + 211.191 + 114.561 + 201.061 = $694 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(3026.493 + 4476.978 + 4167.223 + 4265.502 + 6551.679) / 5 = $4497.575 Mil.
Total Assets at the begining of this year (Sep13) was $3,026 Mil.
Long-Term Debt was $2,437 Mil.
Total Current Assets was $2,585 Mil.
Total Current Liabilities was $1,760 Mil.
Net Income was 40.176 + 22.341 + -17.633 + -0.941 = $44 Mil.

Revenue was 1338.208 + 1617.613 + 1385.957 + 1593.937 = $5,936 Mil.
Gross Profit was 133.663 + 135.723 + 82.881 + 105.087 = $457 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(2029.419 + 2437.469 + 2291.618 + 2353.301 + 3026.493) / 5 = $2427.66 Mil.
Total Assets at the begining of last year (Sep12) was $2,029 Mil.
Long-Term Debt was $906 Mil.
Total Current Assets was $1,014 Mil.
Total Current Liabilities was $801 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.

NGL Energy Partners LP's current net income (TTM) was 7. ==> Positive ==> Score 1.

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.

NGL Energy Partners LP's current cash flow from operations (TTM) was 72. ==> Positive ==> Score 1.

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 (TTM)/Total Assets at the Beginning of This Year (Sep13)
=7.03/3026.493
=0.00232282

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=43.943/2029.419
=0.021653

NGL Energy Partners LP's return on assets of this year was 0.00232282. NGL Energy Partners LP's return on assets of last year was 0.021653. ==> Last year is higher ==> Score 0.

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.

NGL Energy Partners LP's current net income (TTM) was 7. NGL Energy Partners LP's current cash flow from operations (TTM) was 72. ==> 72 > 7 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=2437.351/4497.575
=0.54192559

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=906.066/2427.66
=0.37322607

NGL Energy Partners LP's gearing of this year was 0.54192559. NGL Energy Partners LP's gearing of last year was 0.37322607. ==> Last year is lower than this year ==> Score 0.

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: Sep14)=Total Current Assets/Total Current Liabilities
=2585.053/1759.98
=1.4687968

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=1013.859/800.658
=1.26628223

NGL Energy Partners LP's current ratio of this year was 1.4687968. NGL Energy Partners LP's current ratio of last year was 1.26628223. ==> This year's current ratio is higher. ==> Score 1.

Q7. 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 88.3. NGL Energy Partners LP's number of shares in issue last year was 58.9. ==> There is larger 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: TTM)=Gross Profit/Revenue
=694.229/15748.52
=0.04408217

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=457.354/5935.715
=0.07705121

NGL Energy Partners LP's gross margin of this year was 0.04408217. NGL Energy Partners LP's gross margin of last year was 0.07705121. ==> Last year's gross margin is higher ==> Score 0.

Q9. 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 (Sep13)
=15748.52/3026.493
=5.20355408

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=5935.715/2029.419
=2.92483464

NGL Energy Partners LP's asset turnover of this year was 5.20355408. NGL Energy Partners LP's asset turnover of last year was 2.92483464. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Mar09Mar10Mar12Mar13Mar14
Q1 1
Q2 1
Q3 0
Q4 1
Q5 0
Q6 1
Q7 0
Q8 0
Q9 0
F-score 4

NGL Energy Partners LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 111111111
Q2 111111111
Q3 111110000
Q4 111111111
Q5 001111000
Q6 010110111
Q7 000000000
Q8 111000000
Q9 100000011
F-score 0666664455
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK