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Eversource Energy (NYSE:NU)
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

Eversource Energy has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

NU' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 6

2
8

During the past 13 years, the highest Piotroski F-Score of Eversource Energy was 8. The lowest was 2. 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 (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was 221.609 + 253.254 + 207.507 + 235.92 = $918 Mil.
Cash Flow from Operations was 231.456 + 481.815 + 373.741 + 486.035 = $1,573 Mil.
Revenue was 1881.12 + 2513.431 + 1817.061 + 1933.105 = $8,145 Mil.
Gross Profit was 1178.563 + 1351.382 + 1131.943 + 1230.465 = $4,892 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(27982.311 + 29777.975 + 29951.765 + 29879.939 + 30046.026) / 5 = $29527.6032 Mil.
Total Assets at the begining of this year (Sep14) was $27,982 Mil.
Long-Term Debt was $8,757 Mil.
Total Current Assets was $2,368 Mil.
Total Current Liabilities was $2,972 Mil.
Net Income was 177.397 + 235.957 + 127.367 + 234.614 = $775 Mil.

Revenue was 1777.729 + 2290.59 + 1677.614 + 1892.532 = $7,638 Mil.
Gross Profit was 1482.777 + 1312.44 + 1053.403 + 1175.901 = $5,025 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(28444.318 + 27795.537 + 28096.87 + 27790.445 + 27982.311) / 5 = $28021.8962 Mil.
Total Assets at the begining of last year (Sep13) was $28,444 Mil.
Long-Term Debt was $8,167 Mil.
Total Current Assets was $2,102 Mil.
Total Current Liabilities was $2,930 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.

Eversource Energy's current net income (TTM) was 918. ==> 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.

Eversource Energy's current cash flow from operations (TTM) was 1,573. ==> 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 (Sep14)
=918.29/27982.311
=0.0328168

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=775.335/28444.318
=0.02725799

Eversource Energy's return on assets of this year was 0.0328168. Eversource Energy's return on assets of last year was 0.02725799. ==> 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.

Eversource Energy's current net income (TTM) was 918. Eversource Energy's current cash flow from operations (TTM) was 1,573. ==> 1,573 > 918 ==> CFROA > ROA ==> Score 1.

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: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=8757.498/29527.6032
=0.29658682

Gearing (Last Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=8166.985/28021.8962
=0.29145012

Eversource Energy's gearing of this year was 0.29658682. Eversource Energy's gearing of last year was 0.29145012. ==> Last year is lower than this year ==> Score 0.

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: Sep15)=Total Current Assets/Total Current Liabilities
=2367.688/2971.693
=0.79674717

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=2101.55/2929.676
=0.71733188

Eversource Energy's current ratio of this year was 0.79674717. Eversource Energy's current ratio of last year was 0.71733188. ==> 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.

Eversource Energy's number of shares in issue this year was 0. Eversource Energy's number of shares in issue last year was 0. ==> 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
=4892.353/8144.717
=0.60067808

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5024.521/7638.465
=0.65779198

Eversource Energy's gross margin of this year was 0.60067808. Eversource Energy's gross margin of last year was 0.65779198. ==> 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 (Sep14)
=8144.717/27982.311
=0.29106663

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=7638.465/28444.318
=0.26854098

Eversource Energy's asset turnover of this year was 0.29106663. Eversource Energy's asset turnover of last year was 0.26854098. ==> 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+1+0+1+1+0+1
=7

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

Eversource Energy has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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.

Eversource Energy Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 111111111
Question 2 111111111
Question 3 101110101
Question 4 001111111
Question 5 001011010
Question 6 100100011
Question 7 111111111
Question 8 101111100
Question 9 000000101
F-score 637776767

Eversource Energy Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 111111111
Question 2 111111111
Question 3 000001111
Question 4 111111111
Question 5 110000000
Question 6 111111111
Question 7 111111111
Question 8 101010000
Question 9 000111111
F-score 766677777
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