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NII Holdings Inc (NAS:NIHD)
Piotroski F-Score
0 (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

NII Holdings Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

During the past 13 years, the highest Piotroski F-Score of NII Holdings Inc was 7. The lowest was 2. 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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was -309.517 + 2050.033 + -189.421 + -84.582 = $1,467 Mil.
Cash Flow from Operations was -170.855 + -83.902 + -64.891 + -13.594 = $-333 Mil.
Revenue was 763.869 + 420.765 + 284.652 + 244.782 = $1,714 Mil.
Gross Profit was 312.206 + 190.76 + 144.166 + 125.512 = $773 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(5374.034 + 4896.965 + 3504.604 + 2842.79 + 0) / 5 = $3323.6786 Mil.
Total Assets at the begining of this year (Dec14) was $5,374 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Net Income was -376.079 + -623.311 + -443.447 + -514.861 = $-1,958 Mil.

Revenue was 955.781 + 586.914 + 476.264 + 432.005 = $2,451 Mil.
Gross Profit was 374.848 + 239.612 + 216.646 + 168.2 = $999 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(8679.954 + 8189.665 + 7438.786 + 6245.67 + 5374.034) / 5 = $7185.6218 Mil.
Total Assets at the begining of last year (Dec13) was $8,680 Mil.
Long-Term Debt was $208 Mil.
Total Current Assets was $1,663 Mil.
Total Current Liabilities was $1,703 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.

NII Holdings Inc's current net income (TTM) was 1,467. ==> 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.

NII Holdings Inc's current cash flow from operations (TTM) was -333. ==> Negative ==> Score 0.

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 (Dec14)
=1466.513/5374.034
=0.27288867

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=-1957.698/8679.954
=-0.22554244

NII Holdings Inc's return on assets of this year was 0.27288867. NII Holdings Inc's return on assets of last year was -0.22554244. ==> 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.

NII Holdings Inc's current net income (TTM) was 1,467. NII Holdings Inc's current cash flow from operations (TTM) was -333. ==> -333 <= 1,467 ==> CFROA <= ROA ==> Score 0.

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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=0/3323.6786
=0

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=207.844/7185.6218
=0.02892498

NII Holdings Inc's gearing of this year was 0. NII Holdings Inc's gearing of last year was 0.02892498. ==> 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: Dec15)=Total Current Assets/Total Current Liabilities
=0/0
=

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=1662.721/1703.413
=0.97611149

NII Holdings Inc's current ratio of this year was . NII Holdings Inc's current ratio of last year was 0.97611149. ==> Last year's current ratio is higher ==> Score 0.

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.

NII Holdings Inc's number of shares in issue this year was 100. NII Holdings Inc's number of shares in issue last year was 172.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=772.644/1714.068
=0.45076625

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=999.306/2450.964
=0.40771957

NII Holdings Inc's gross margin of this year was 0.45076625. NII Holdings Inc's gross margin of last year was 0.40771957. ==> 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 (Dec14)
=1714.068/5374.034
=0.31895369

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=2450.964/8679.954
=0.28237062

NII Holdings Inc's asset turnover of this year was 0.31895369. NII Holdings Inc's asset turnover of last year was 0.28237062. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

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

NII Holdings Inc has an F-score of 6 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.

NII Holdings Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 111111000
Question 2 111111100
Question 3 000100000
Question 4 111111111
Question 5 101010001
Question 6 010000000
Question 7 011101100
Question 8 100011000
Question 9 010101001
F-score 565656313

NII Holdings Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 000000011
Question 2 000000000
Question 3 000000011
Question 4 111111100
Question 5 000111111
Question 6 100000011
Question 7 000010001
Question 8 000000011
Question 9 000001111
F-score 211233367
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