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Nutraceutical International Corp (NAS:NUTR)
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

Nutraceutical International Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

NUTR' 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 Nutraceutical International Corp 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 4.324 + 4.135 + 4.136 + 3.842 = $16.4 Mil.
Cash Flow from Operations was 5.305 + 5.496 + 7.613 + 4.093 = $22.5 Mil.
Revenue was 54.859 + 51.55 + 51.256 + 50.814 = $208.5 Mil.
Gross Profit was 27.16 + 26.062 + 25.709 + 24.879 = $103.8 Mil.
Total Assets at the begining of this year (Mar13) was $182.6 Mil.
Total Assets was $203.6 Mil.
Long-Term Debt was $36.5 Mil.
Total Current Assets was $78.5 Mil.
Total Current Liabilities was $21.0 Mil.
Net Income was 5.536 + 3.494 + 4.174 + 3.352 = $16.6 Mil.

Revenue was 56.583 + 49.744 + 50.261 + 49.607 = $206.2 Mil.
Gross Profit was 28.15 + 24.141 + 24.979 + 24.729 = $102.0 Mil.
Total Assets at the begining of last year (Mar12) was $178.0 Mil.
Total Assets was $182.6 Mil.
Long-Term Debt was $35.0 Mil.
Total Current Assets was $66.6 Mil.
Total Current Liabilities was $18.9 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.

Nutraceutical International Corp's current net income was 16.4. ==> 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.

Nutraceutical International Corp's current cash flow from operations was 22.5. ==> 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)
=16.437/182.606
=0.09001347

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=16.556/178
=0.09301124

Nutraceutical International Corp's return on assets of this year was 0.09001347. Nutraceutical International Corp's return on assets of last year was 0.09301124. ==> 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.

Nutraceutical International Corp's current net income was 16.4. Nutraceutical International Corp's current cash flow from operations was 22.5. ==> 22.5 > 16.4 ==> 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
=36.5/203.612
=0.17926252

Gearing (Last Year)=Long-Term Debt/Total Assets
=35/182.606
=0.1916695

Nutraceutical International Corp's gearing of this year was 0.17926252. Nutraceutical International Corp's gearing of last year was 0.1916695. ==> 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
=78.511/21.026
=3.733996

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=66.576/18.948
=3.51361621

Nutraceutical International Corp's current ratio of this year was 3.733996. Nutraceutical International Corp's current ratio of last year was 3.51361621. ==> 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.

Nutraceutical International Corp's number of shares in issue this year was 9.9. Nutraceutical International Corp's number of shares in issue last year was 9.8. ==> 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
=103.81/208.479
=0.49793984

Gross Margin (Last Year)=Gross Profit/Revenue
=101.999/206.195
=0.49467252

Nutraceutical International Corp's gross margin of this year was 0.49793984. Nutraceutical International Corp's gross margin of last year was 0.49467252. ==> 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)
=208.479/182.606
=1.14168757

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=206.195/178
=1.15839888

Nutraceutical International Corp's asset turnover of this year was 1.14168757. Nutraceutical International Corp's asset turnover of last year was 1.15839888. ==> 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

Nutraceutical International Corp 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.

Nutraceutical International Corp Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Q1 1111101111
Q2 1111110111
Q3 0010001000
Q4 1111110111
Q5 1100011011
Q6 1010100111
Q7 0111111111
Q8 1011100000
Q9 0000001000
F-score 6575645566

Nutraceutical International Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 0000001010
Q4 1111111111
Q5 1001001111
Q6 1001111111
Q7 1111111100
Q8 0000000011
Q9 0100100000
F-score 6546657676
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