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Newell Rubbermaid Inc (NYSE:NWL)
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 = 8 or 9
Bad or low score = 0 or 1

Newell Rubbermaid Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

NWL' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of Newell Rubbermaid Inc was 9. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 150.6 + 52.9 + 117.3 + 193.3 = $514 Mil.
Cash Flow from Operations was 96.2 + -92.1 + 304.2 + 360.8 = $669 Mil.
Revenue was 1521 + 1232.2 + 1489.8 + 1487.2 = $5,730 Mil.
Gross Profit was 608.4 + 469.3 + 557 + 564.9 = $2,200 Mil.
Total Assets at the begining of this year (Jun13) was $6,403 Mil.
Total Assets was $6,218 Mil.
Long-Term Debt was $1,424 Mil.
Total Current Assets was $2,459 Mil.
Total Current Liabilities was $1,986 Mil.
Net Income was 109.8 + 54.2 + 101.9 + 108.3 = $374 Mil.

Revenue was 1474.7 + 1240.8 + 1518.8 + 1535.3 = $5,770 Mil.
Gross Profit was 582.7 + 473.6 + 555 + 582.3 = $2,194 Mil.
Total Assets at the begining of last year (Jun12) was $6,591 Mil.
Total Assets was $6,403 Mil.
Long-Term Debt was $1,669 Mil.
Total Current Assets was $2,600 Mil.
Total Current Liabilities was $1,841 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.

Newell Rubbermaid Inc's current net income was 514. ==> 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.

Newell Rubbermaid Inc's current cash flow from operations was 669. ==> 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 (Jun13)
=514.1/6402.9
=0.08029174

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=374.2/6590.8
=0.05677611

Newell Rubbermaid Inc's return on assets of this year was 0.08029174. Newell Rubbermaid Inc's return on assets of last year was 0.05677611. ==> This year is higher. ==> Score 1.

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.

Newell Rubbermaid Inc's current net income was 514. Newell Rubbermaid Inc's current cash flow from operations was 669. ==> 669 > 514 ==> 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
=1424.2/6218.1
=0.22904103

Gearing (Last Year)=Long-Term Debt/Total Assets
=1669/6402.9
=0.26066314

Newell Rubbermaid Inc's gearing of this year was 0.22904103. Newell Rubbermaid Inc's gearing of last year was 0.26066314. ==> 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
=2458.6/1986.4
=1.23771647

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2600.2/1841.4
=1.41207777

Newell Rubbermaid Inc's current ratio of this year was 1.23771647. Newell Rubbermaid Inc's current ratio of last year was 1.41207777. ==> Last year's current ratio is higher ==> Score 0.

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.

Newell Rubbermaid Inc's number of shares in issue this year was 279.7. Newell Rubbermaid Inc's number of shares in issue last year was 294.3. ==> 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)=Gross Profit/Revenue
=2199.6/5730.2
=0.38386095

Gross Margin (Last Year)=Gross Profit/Revenue
=2193.6/5769.6
=0.38019967

Newell Rubbermaid Inc's gross margin of this year was 0.38386095. Newell Rubbermaid Inc's gross margin of last year was 0.38019967. ==> 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 (Jun13)
=5730.2/6402.9
=0.89493823

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=5769.6/6590.8
=0.87540208

Newell Rubbermaid Inc's asset turnover of this year was 0.89493823. Newell Rubbermaid Inc's asset turnover of last year was 0.87540208. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Newell Rubbermaid Inc 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.

Newell Rubbermaid Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0111011111
Q2 1111111111
Q3 0111011011
Q4 1111111111
Q5 1011000111
Q6 1000111110
Q7 0000100111
Q8 1111011011
Q9 0111001110
F-score 5677467797

Newell Rubbermaid Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0011111111
Q4 1111111111
Q5 0111100101
Q6 1001111010
Q7 1101100111
Q8 0111111111
Q9 0011110001
F-score 5679976778
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