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Nu Skin Enterprises Inc (NYSE:NUS)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

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

NUS' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 7

4
9

During the past 13 years, the highest Piotroski F-Score of Nu Skin Enterprises Inc was 9. The lowest was 4. And the median was 7.


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 110.9 + 125.271 + 54.854 + 19.507 = $311 Mil.
Cash Flow from Operations was 295.286 + 46.033 + -160.6 + -24.265 = $156 Mil.
Revenue was 927.612 + 1016.085 + 671.061 + 650.027 = $3,265 Mil.
Gross Profit was 787.796 + 851.413 + 564.417 + 494.017 = $2,698 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(1392.707 + 1688.487 + 1821.062 + 1642.473 + 1603.614) / 5 = $1,630 Mil.
Total Assets was $1,604 Mil.
Long-Term Debt was $112 Mil.
Total Current Assets was $846 Mil.
Total Current Liabilities was $519 Mil.
Net Income was 54.176 + 59.233 + 54.282 + 74.435 = $242 Mil.

Revenue was 526.182 + 550.838 + 541.305 + 671.328 = $2,290 Mil.
Gross Profit was 439.414 + 455.794 + 451.26 + 560.055 = $1,907 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(1134.971 + 1115.723 + 1124.807 + 1207.793 + 1392.707) / 5 = $1,195 Mil.
Total Assets was $1,393 Mil.
Long-Term Debt was $129 Mil.
Total Current Assets was $766 Mil.
Total Current Liabilities was $474 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.

Nu Skin Enterprises Inc's current net income (ttm) was 311. ==> 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.

Nu Skin Enterprises Inc's current cash flow from operations (ttm) was 156. ==> 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
=310.532/1629.6686
=0.19054917

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=242.126/1195.2002
=0.20258196

Nu Skin Enterprises Inc's return on assets of this year was 0.19054917. Nu Skin Enterprises Inc's return on assets of last year was 0.20258196. ==> 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.

Nu Skin Enterprises Inc's current net income (ttm) was 311. Nu Skin Enterprises Inc's current cash flow from operations (ttm) was 156. ==> 156 =< 311 ==> CFROA =< ROA ==> Score 0.

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
=111.621/1603.614
=0.0696059

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=128.664/1392.707
=0.09238411

Nu Skin Enterprises Inc's gearing of this year was 0.0696059. Nu Skin Enterprises Inc's gearing of last year was 0.09238411. ==> 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: Jun14)=Total Current Assets/Total Current Liabilities
=846.047/518.676
=1.63116666

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=765.796/473.63
=1.61686549

Nu Skin Enterprises Inc's current ratio of this year was 1.63116666. Nu Skin Enterprises Inc's current ratio of last year was 1.61686549. ==> 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.

Nu Skin Enterprises Inc's number of shares in issue this year was 61.1. Nu Skin Enterprises Inc's number of shares in issue last year was 61.1. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=2697.643/3264.785
=0.82628504

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1906.523/2289.653
=0.83266897

Nu Skin Enterprises Inc's gross margin of this year was 0.82628504. Nu Skin Enterprises Inc's gross margin of last year was 0.83266897. ==> 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
=3264.785/1629.6686
=2.00334289

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=2289.653/1195.2002
=1.91570667

Nu Skin Enterprises Inc's asset turnover of this year was 2.00334289. Nu Skin Enterprises Inc's asset turnover of last year was 1.91570667. ==> 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+0+1+1+1+0+1
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Nu Skin Enterprises 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, 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.

Nu Skin Enterprises Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1001111111
Q4 1111111111
Q5 1100111101
Q6 0100111100
Q7 1111100111
Q8 1000011011
Q9 1100111111
F-score 8745888878

Nu Skin Enterprises Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 1111101110
Q4 1111111100
Q5 1000011111
Q6 1000000001
Q7 0011111001
Q8 1111001110
Q9 1111101111
F-score 8677658767
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