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Gazprom PJSC (OTCPK:OGZPY)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

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

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

During the past 12 years, the highest Piotroski F-Score of Gazprom PJSC was 7. The lowest was 0. And the median was 5.


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 local exchange's currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was $12,332 Mil.
Cash Flow from Operations was $31,823 Mil.
Revenue was $95,163 Mil.
Gross Profit was $62,642 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was (237816.82858 + 267189.595738) / 2 = $252503.212159 Mil.
Total Assets at the begining of this year (Dec14) was $237,817 Mil.
Long-Term Debt was $43,808 Mil.
Total Current Assets was $62,578 Mil.
Total Current Liabilities was $33,292 Mil.
Net Income was $2,491 Mil.

Revenue was $87,587 Mil.
Gross Profit was $60,135 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was (210533.312441 + 237816.82858) / 2 = $224175.070511 Mil.
Total Assets at the begining of last year (Dec13) was $210,533 Mil.
Long-Term Debt was $34,849 Mil.
Total Current Assets was $54,233 Mil.
Total Current Liabilities was $29,081 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.

Gazprom PJSC's current net income (TTM) was 12,332. ==> 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.

Gazprom PJSC's current cash flow from operations (TTM) was 31,823. ==> 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 (Dec14)
=12332.4349734/237816.82858
=0.05185686

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=2491.44468819/210533.312441
=0.01183397

Gazprom PJSC's return on assets of this year was 0.05185686. Gazprom PJSC's return on assets of last year was 0.01183397. ==> 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.

Gazprom PJSC's current net income (TTM) was 12,332. Gazprom PJSC's current cash flow from operations (TTM) was 31,823. ==> 31,823 > 12,332 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=43808.2575995/252503.212159
=0.17349584

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=34848.6681291/224175.070511
=0.15545291

Gazprom PJSC's gearing of this year was 0.17349584. Gazprom PJSC's gearing of last year was 0.15545291. ==> 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: Dec15)=Total Current Assets/Total Current Liabilities
=62577.9066123/33292.08712
=1.87966307

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=54233.0774052/29080.9620809
=1.8648997

Gazprom PJSC's current ratio of this year was 1.87966307. Gazprom PJSC's current ratio of last year was 1.8648997. ==> 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.

Gazprom PJSC's number of shares in issue this year was 11500. Gazprom PJSC's number of shares in issue last year was 11500. ==> 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
=62642.0087747/95163.2403635
=0.65825847

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=60135.1457223/87587.1356941
=0.68657509

Gazprom PJSC's gross margin of this year was 0.65825847. Gazprom PJSC's gross margin of last year was 0.68657509. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec14)
=95163.2403635/237816.82858
=0.40015352

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=87587.1356941/210533.312441
=0.41602507

Gazprom PJSC's asset turnover of this year was 0.40015352. Gazprom PJSC's asset turnover of last year was 0.41602507. ==> 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+0+1+1+0+0
=6

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

Gazprom PJSC 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 local exchange's currency.

Gazprom PJSC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1000110001
Question 4 0011111111
Question 5 1010111000
Question 6 1010100101
Question 7 0010111101
Question 8 0100000000
Question 9 1010110100
F-score 6373875636
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