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Enpro Industries Inc (NYSE:NPO)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

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

NPO' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 6

3
8

During the past 13 years, the highest Piotroski F-Score of Enpro Industries Inc was 8. The lowest was 3. 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 1.3 + 5.2 + 5.6 + 8 = $20 Mil.
Cash Flow from Operations was -25 + 31.8 + 32.6 + 23.3 = $63 Mil.
Revenue was 287.2 + 275.5 + 276 + 305.8 = $1,145 Mil.
Gross Profit was 96.5 + 85.8 + 92.1 + 109.2 = $384 Mil.
Total Assets at the begining of this year (Mar13) was $1,382 Mil.
Total Assets was $1,429 Mil.
Long-Term Debt was $304 Mil.
Total Current Assets was $484 Mil.
Total Current Liabilities was $354 Mil.
Net Income was 8.6 + 5.7 + 11.3 + 10.2 = $36 Mil.

Revenue was 286.9 + 279.3 + 291.7 + 301.7 = $1,160 Mil.
Gross Profit was 94.2 + 91.1 + 98.8 + 103 = $387 Mil.
Total Assets at the begining of last year (Mar12) was $1,281 Mil.
Total Assets was $1,382 Mil.
Long-Term Debt was $305 Mil.
Total Current Assets was $410 Mil.
Total Current Liabilities was $368 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.

Enpro Industries Inc's current net income was 20. ==> 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.

Enpro Industries Inc's current cash flow from operations was 63. ==> 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/Total Assets at the beginning of this year (Mar13)
=20.1/1382
=0.01454414

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=35.8/1280.9
=0.0279491

Enpro Industries Inc's return on assets of this year was 0.01454414. Enpro Industries Inc's return on assets of last year was 0.0279491. ==> 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.

Enpro Industries Inc's current net income was 20. Enpro Industries Inc's current cash flow from operations was 63. ==> 63 > 20 ==> 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)=Long-Term Debt/Total Assets
=303.6/1428.5
=0.21253063

Gearing (Last Year)=Long-Term Debt/Total Assets
=305.2/1382
=0.22083936

Enpro Industries Inc's gearing of this year was 0.21253063. Enpro Industries Inc's gearing of last year was 0.22083936. ==> This year is lower or equal to last year. ==> 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
=483.6/354
=1.36610169

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=409.7/368.2
=1.11271048

Enpro Industries Inc's current ratio of this year was 1.36610169. Enpro Industries Inc's current ratio of last year was 1.11271048. ==> 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.

Enpro Industries Inc's number of shares in issue this year was 25.1. Enpro Industries Inc's number of shares in issue last year was 22.3. ==> 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)=Gross Profit/Revenue
=383.6/1144.5
=0.3351682

Gross Margin (Last Year)=Gross Profit/Revenue
=387.1/1159.6
=0.33382201

Enpro Industries Inc's gross margin of this year was 0.3351682. Enpro Industries Inc's gross margin of last year was 0.33382201. ==> This year's gross margin is higher. ==> Score 1.

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 (Mar13)
=1144.5/1382
=0.82814761

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=1159.6/1280.9
=0.90530096

Enpro Industries Inc's asset turnover of this year was 0.82814761. Enpro Industries Inc's asset turnover of last year was 0.90530096. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+1+0+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Enpro Industries 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.

Enpro Industries Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 101101111
Q2 111111111
Q3 101101000
Q4 111110111
Q5 011100101
Q6 010011010
Q7 010110000
Q8 111101000
Q9 011001100
F-score 577746544

Enpro Industries Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 0000000000
Q4 1111111111
Q5 1000011111
Q6 0011100001
Q7 1111000000
Q8 0000001001
Q9 1111000000
F-score 6566445446
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