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NuStar GP Holdings LLC (NYSE:NSH)
Piotroski F-Score
6 (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

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

NSH' s 10-Year Piotroski F-Score Range
Min: 1   Max: 6
Current: 6

1
6

During the past 13 years, the highest Piotroski F-Score of NuStar GP Holdings LLC was 6. The lowest was 1. 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 (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 13.646 + 15.768 + 17.639 + 14.374 = $61.43 Mil.
Cash Flow from Operations was 14.153 + 16.795 + 25.174 + 2.671 = $58.79 Mil.
Revenue was 14.39 + 16.739 + 17.77 + 16.481 = $65.38 Mil.
Gross Profit was 14.39 + 16.739 + 17.77 + 16.481 = $65.38 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(412.382 + 405.318 + 401.82 + 402.124 + 385.15) / 5 = $401.3588 Mil.
Total Assets at the begining of this year (Dec13) was $412.38 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $21.06 Mil.
Total Current Liabilities was $38.75 Mil.
Net Income was 11.075 + 12.559 + 12.035 + -46.703 = $-11.03 Mil.

Revenue was 12.144 + 13.417 + 13.462 + -45.764 = $-6.74 Mil.
Gross Profit was 12.144 + 13.417 + 13.462 + -45.764 = $-6.74 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(517.716 + 512.205 + 504.357 + 504.665 + 412.382) / 5 = $490.265 Mil.
Total Assets at the begining of last year (Dec12) was $517.72 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $13.79 Mil.
Total Current Liabilities was $40.42 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.

NuStar GP Holdings LLC's current net income (TTM) was 61.43. ==> 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.

NuStar GP Holdings LLC's current cash flow from operations (TTM) was 58.79. ==> 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 (Dec13)
=61.427/412.382
=0.14895655

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=-11.034/517.716
=-0.02131284

NuStar GP Holdings LLC's return on assets of this year was 0.14895655. NuStar GP Holdings LLC's return on assets of last year was -0.02131284. ==> 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.

NuStar GP Holdings LLC's current net income (TTM) was 61.43. NuStar GP Holdings LLC's current cash flow from operations (TTM) was 58.79. ==> 58.79 <= 61.43 ==> 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: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=0/401.3588
=0

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=0/490.265
=0

NuStar GP Holdings LLC's gearing of this year was 0. NuStar GP Holdings LLC's gearing of last year was 0. ==> 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: Dec14)=Total Current Assets/Total Current Liabilities
=21.061/38.752
=0.54348163

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=13.787/40.418
=0.3411104

NuStar GP Holdings LLC's current ratio of this year was 0.54348163. NuStar GP Holdings LLC's current ratio of last year was 0.3411104. ==> 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.

NuStar GP Holdings LLC's number of shares in issue this year was 42.9. NuStar GP Holdings LLC's number of shares in issue last year was 42.6. ==> 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
=65.38/65.38
=1

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=-6.741/-6.741
=1

NuStar GP Holdings LLC's gross margin of this year was 1. NuStar GP Holdings LLC's gross margin of last year was 1. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec13)
=65.38/412.382
=0.15854232

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=-6.741/517.716
=-0.01302065

NuStar GP Holdings LLC's asset turnover of this year was 0.15854232. NuStar GP Holdings LLC's asset turnover of last year was -0.01302065. ==> 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+1+1+0+1+1+0+0+1
=6

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

NuStar GP Holdings LLC 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.

NuStar GP Holdings LLC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 111111101
Question 2 111111101
Question 3 111110001
Question 4 110000100
Question 5 101111111
Question 6 100100001
Question 7 001000000
Question 8 010000000
Question 9 101000001
F-score 756543416

NuStar GP Holdings LLC Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Question 1 1111100011
Question 2 1111100011
Question 3 0001100001
Question 4 1110000010
Question 5 1111111111
Question 6 0000100001
Question 7 0000000000
Question 8 0000000000
Question 9 0001100001
F-score 4445611146
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