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Nutraceutical International Corp (NAS:NUTR)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

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

Nutraceutical International Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

NUTR' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 8

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 (Jun16) TTM:Last Year (Jun15) TTM:
Net Income was 3.374 + 4.241 + 4.618 + 6.029 = $18.3 Mil.
Cash Flow from Operations was 3.863 + 6.942 + 10.362 + 6.155 = $27.3 Mil.
Revenue was 53.649 + 55.959 + 59.492 + 60.836 = $229.9 Mil.
Gross Profit was 26.687 + 28.108 + 30.329 + 31.42 = $116.5 Mil.
Average Total Assets from the begining of this year (Jun15)
to the end of this year (Jun16) was
(210.905 + 212.449 + 229.216 + 234.515 + 236.595) / 5 = $224.736 Mil.
Total Assets at the begining of this year (Jun15) was $210.9 Mil.
Long-Term Debt was $46.0 Mil.
Total Current Assets was $92.7 Mil.
Total Current Liabilities was $21.2 Mil.
Net Income was 3.433 + 3.351 + 4.096 + 4.45 = $15.3 Mil.

Revenue was 52.44 + 53.044 + 55.404 + 54.382 = $215.3 Mil.
Gross Profit was 25.931 + 25.855 + 27.255 + 26.427 = $105.5 Mil.
Average Total Assets from the begining of last year (Jun14)
to the end of last year (Jun15) was
(211.669 + 214.778 + 211.9 + 212.213 + 210.905) / 5 = $212.293 Mil.
Total Assets at the begining of last year (Jun14) was $211.7 Mil.
Long-Term Debt was $32.0 Mil.
Total Current Assets was $82.4 Mil.
Total Current Liabilities was $20.1 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.

Nutraceutical International Corp's current net income (TTM) was 18.3. ==> 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.

Nutraceutical International Corp's current cash flow from operations (TTM) was 27.3. ==> 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 (Jun15)
=18.262/210.905
=0.08658875

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=15.33/211.669
=0.0724244

Nutraceutical International Corp's return on assets of this year was 0.08658875. Nutraceutical International Corp's return on assets of last year was 0.0724244. ==> 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.

Nutraceutical International Corp's current net income (TTM) was 18.3. Nutraceutical International Corp's current cash flow from operations (TTM) was 27.3. ==> 27.3 > 18.3 ==> 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: Jun16)=Long-Term Debt/Average Total Assets from Jun15 to Jun16
=46/224.736
=0.20468461

Gearing (Last Year: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=32/212.293
=0.15073507

Nutraceutical International Corp's gearing of this year was 0.20468461. Nutraceutical International Corp's gearing of last year was 0.15073507. ==> 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: Jun16)=Total Current Assets/Total Current Liabilities
=92.741/21.215
=4.37148244

Current Ratio (Last Year: Jun15)=Total Current Assets/Total Current Liabilities
=82.425/20.07
=4.10687593

Nutraceutical International Corp's current ratio of this year was 4.37148244. Nutraceutical International Corp's current ratio of last year was 4.10687593. ==> 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.

Nutraceutical International Corp's number of shares in issue this year was 9.3. Nutraceutical International Corp's number of shares in issue last year was 9.6. ==> 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
=116.544/229.936
=0.50685408

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=105.468/215.27
=0.48993357

Nutraceutical International Corp's gross margin of this year was 0.50685408. Nutraceutical International Corp's gross margin of last year was 0.48993357. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun15)
=229.936/210.905
=1.09023494

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=215.27/211.669
=1.01701241

Nutraceutical International Corp's asset turnover of this year was 1.09023494. Nutraceutical International Corp's asset turnover of last year was 1.01701241. ==> 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+1+1
=8

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

Nutraceutical International Corp has an F-score of 8. 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.

Nutraceutical International Corp Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
Question 1 1110111111
Question 2 1111111111
Question 3 1000100000
Question 4 1111111111
Question 5 0001101101
Question 6 1010011111
Question 7 1111111111
Question 8 1110000010
Question 9 0000100000
F-score 7564756666

Nutraceutical International Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Question 1 1111111111
Question 2 1111111111
Question 3 0000000111
Question 4 1111111111
Question 5 1000111000
Question 6 1111111101
Question 7 0011111111
Question 8 1110000111
Question 9 0100000001
F-score 6665666768
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