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

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: 5   Max: 6
Current: 5

5
6

During the past 5 years, the highest Piotroski F-Score of NGL Energy Partners LP was 6. The lowest was 5. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was -0.941 + 23.898 + 42.331 + -39.975 = $25 Mil.
Cash Flow from Operations was -73.874 + 113.517 + 20.06 + 9.206 = $69 Mil.
Revenue was 1593.937 + 2743.445 + 3975.935 + 3648.614 = $11,962 Mil.
Gross Profit was 105.087 + 167.416 + 211.191 + 114.561 = $598 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(2353.301 + 3026.493 + 4476.978 + 4167.223 + 4265.502) / 5 = $3,658 Mil.
Total Assets was $4,266 Mil.
Long-Term Debt was $1,442 Mil.
Total Current Assets was $1,376 Mil.
Total Current Liabilities was $1,034 Mil.
Net Income was 10.073 + 40.176 + 22.341 + -17.633 = $55 Mil.

Revenue was 1135.51 + 1338.208 + 1617.613 + 1385.957 = $5,477 Mil.
Gross Profit was 81.82 + 133.663 + 135.723 + 82.881 = $434 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(1900.21 + 2029.419 + 2437.469 + 2291.618 + 2353.301) / 5 = $2,202 Mil.
Total Assets was $2,353 Mil.
Long-Term Debt was $782 Mil.
Total Current Assets was $813 Mil.
Total Current Liabilities was $722 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

NGL Energy Partners LP's current net income (ttm) was 25. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

NGL Energy Partners LP's current cash flow from operations (ttm) was 69. ==> 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)/Average Total Assets from Jun13 to Jun14
=25.313/3657.8994
=0.00692009

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=54.957/2202.4034
=0.02495319

NGL Energy Partners LP's return on assets of this year was 0.00692009. NGL Energy Partners LP's return on assets of last year was 0.02495319. ==> 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 25. NGL Energy Partners LP's current cash flow from operations (ttm) was 69. ==> 69 > 25 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun14)=Long-Term Debt/Total Assets
=1441.875/4265.502
=0.33803173

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=781.816/2353.301
=0.332221

NGL Energy Partners LP's gearing of this year was 0.33803173. NGL Energy Partners LP's gearing of last year was 0.332221. ==> 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: Jun14)=Total Current Assets/Total Current Liabilities
=1376.046/1034.335
=1.33036782

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=812.533/722.22
=1.12504915

NGL Energy Partners LP's current ratio of this year was 1.33036782. NGL Energy Partners LP's current ratio of last year was 1.12504915. ==> 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 74.1. NGL Energy Partners LP's number of shares in issue last year was 47.7. ==> 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
=598.255/11961.931
=0.05001325

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=434.087/5477.288
=0.07925218

NGL Energy Partners LP's gross margin of this year was 0.05001325. NGL Energy Partners LP's gross margin of last year was 0.07925218. ==> 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 average total assets throughout 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)/Average Total Assets from Jun13 to Jun14
=11961.931/3657.8994
=3.27016402

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=5477.288/2202.4034
=2.48695947

NGL Energy Partners LP's asset turnover of this year was 3.27016402. NGL Energy Partners LP's asset turnover of last year was 2.48695947. ==> 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 = 8 or 9

Bad or low score = 0 or 1

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, Altman Z-Score, Beneish M-Score


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 1
F-score 5

NGL Energy Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 11111111
Q2 11111111
Q3 11111000
Q4 11111111
Q5 00000100
Q6 01011011
Q7 00000000
Q8 11100000
Q9 00011111
F-score 0056566555
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