Switch to:
Oil-Dri Corp of America (NYSE:ODC)
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

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

ODC' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of Oil-Dri Corp of America 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 (Apr16) TTM:Last Year (Apr15) TTM:
Net Income was 5.066 + 5.423 + 3.821 + -0.892 = $13.4 Mil.
Cash Flow from Operations was 10.708 + 8.516 + 8.535 + 2.358 = $30.1 Mil.
Revenue was 65.519 + 67.795 + 65.367 + 64.235 = $262.9 Mil.
Gross Profit was 16.722 + 20.653 + 19.062 + 18.568 = $75.0 Mil.
Average Total Assets from the begining of this year (Apr15)
to the end of this year (Apr16) was
(185.426 + 190.031 + 192.086 + 199.055 + 196.149) / 5 = $192.5494 Mil.
Total Assets at the begining of this year (Apr15) was $185.4 Mil.
Long-Term Debt was $12.3 Mil.
Total Current Assets was $89.9 Mil.
Total Current Liabilities was $30.6 Mil.
Net Income was 0.466 + 2.12 + 2.797 + 1.385 = $6.8 Mil.

Revenue was 66.045 + 66.044 + 64.643 + 65.196 = $261.9 Mil.
Gross Profit was 12.373 + 13.769 + 15.233 + 14.433 = $55.8 Mil.
Average Total Assets from the begining of last year (Apr14)
to the end of last year (Apr15) was
(184.637 + 186.204 + 180.727 + 184.314 + 185.426) / 5 = $184.2616 Mil.
Total Assets at the begining of last year (Apr14) was $184.6 Mil.
Long-Term Debt was $15.4 Mil.
Total Current Assets was $78.5 Mil.
Total Current Liabilities was $28.7 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.

Oil-Dri Corp of America's current net income (TTM) was 13.4. ==> 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.

Oil-Dri Corp of America's current cash flow from operations (TTM) was 30.1. ==> 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 (Apr15)
=13.418/185.426
=0.0723631

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Apr14)
=6.768/184.637
=0.03665571

Oil-Dri Corp of America's return on assets of this year was 0.0723631. Oil-Dri Corp of America's return on assets of last year was 0.03665571. ==> 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.

Oil-Dri Corp of America's current net income (TTM) was 13.4. Oil-Dri Corp of America's current cash flow from operations (TTM) was 30.1. ==> 30.1 > 13.4 ==> 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: Apr16)=Long-Term Debt/Average Total Assets from Apr15 to Apr16
=12.333/192.5494
=0.0640511

Gearing (Last Year: Apr15)=Long-Term Debt/Average Total Assets from Apr14 to Apr15
=15.417/184.2616
=0.08366909

Oil-Dri Corp of America's gearing of this year was 0.0640511. Oil-Dri Corp of America's gearing of last year was 0.08366909. ==> This year is lower or equal to last year. ==> Score 1.

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: Apr16)=Total Current Assets/Total Current Liabilities
=89.945/30.647
=2.93487128

Current Ratio (Last Year: Apr15)=Total Current Assets/Total Current Liabilities
=78.491/28.729
=2.73211737

Oil-Dri Corp of America's current ratio of this year was 2.93487128. Oil-Dri Corp of America's current ratio of last year was 2.73211737. ==> 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.

Oil-Dri Corp of America's number of shares in issue this year was 7. Oil-Dri Corp of America's number of shares in issue last year was 7. ==> 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
=75.005/262.916
=0.28528123

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=55.808/261.928
=0.21306619

Oil-Dri Corp of America's gross margin of this year was 0.28528123. Oil-Dri Corp of America's gross margin of last year was 0.21306619. ==> 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 (Apr15)
=262.916/185.426
=1.41790256

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Apr14)
=261.928/184.637
=1.41861057

Oil-Dri Corp of America's asset turnover of this year was 1.41790256. Oil-Dri Corp of America's asset turnover of last year was 1.41861057. ==> Last year's asset turnover is higher ==> Score 0.

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+1+1+1+1+0
=8

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

Oil-Dri Corp of America 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.

Oil-Dri Corp of America Annual Data

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
Question 1 1111111111
Question 2 1111111111
Question 3 0111000101
Question 4 1111111111
Question 5 0111101111
Question 6 0101010101
Question 7 1100011100
Question 8 0101101101
Question 9 1010010110
F-score 5867566957

Oil-Dri Corp of America Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
Question 1 1111111111
Question 2 1111111111
Question 3 1100001111
Question 4 0111111111
Question 5 1111111111
Question 6 0000001111
Question 7 0000000001
Question 8 0000001111
Question 9 1111000000
F-score 5655447778
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK