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

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

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 3. It is a bad or low score, which usually implies poor business operation.

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

3
8

During the past 9 years, the highest Piotroski F-Score of Gazprom PJSC 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 (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 3692.78026163 + 3768.35568803 + 1749.89236629 + -6578.07584037 = $2,633 Mil.
Cash Flow from Operations was 11399.6025832 + 0 + 21529.3094883 + 10193.972512 = $43,123 Mil.
Revenue was 25811.1773472 + 21778.3573439 + 18771.1541646 + 26201.1756913 = $92,562 Mil.
Gross Profit was 20812.7007783 + 26776.8339129 + 11563.7191588 + 18158.6520947 = $77,312 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(222491.074681 + 227477.098857 + 0 + 232689.584368 + 251324.225865) / 5 = $186796.396754 Mil.
Total Assets at the begining of this year (Dec13) was $222,491 Mil.
Long-Term Debt was $36,828 Mil.
Total Current Assets was $57,313 Mil.
Total Current Liabilities was $30,733 Mil.
Net Income was 6303.44427885 + 3345.22271899 + 4571.78340785 + 4644.61003477 = $18,865 Mil.

Revenue was 24200.0496771 + 18325.5671469 + 19946.1169068 + 24462.6097036 = $86,934 Mil.
Gross Profit was 19727.2230502 + 22798.3937738 + 13730.4189435 + 17900.1324723 = $74,156 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(197993.641331 + 202266.236132 + 0 + 213047.127008 + 222491.074681) / 5 = $167159.61583 Mil.
Total Assets at the begining of last year (Dec12) was $197,994 Mil.
Long-Term Debt was $24,342 Mil.
Total Current Assets was $47,403 Mil.
Total Current Liabilities was $23,041 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 2,633. ==> 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 43,123. ==> 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 (Dec13)
=2632.95247558/222491.074681
=0.01183397

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=18865.0604405/197993.641331
=0.09528114

Gazprom PJSC's return on assets of this year was 0.01183397. Gazprom PJSC's return on assets of last year was 0.09528114. ==> Last year is higher ==> Score 0.

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 2,633. Gazprom PJSC's current cash flow from operations (TTM) was 43,123. ==> 43,123 > 2,633 ==> 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: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=36827.9847657/186796.396754
=0.19715576

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=24341.8115582/167159.61583
=0.14562017

Gazprom PJSC's gearing of this year was 0.19715576. Gazprom PJSC's gearing of last year was 0.14562017. ==> 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: Dec14)=Total Current Assets/Total Current Liabilities
=57313.3796986/30732.687531
=1.8648997

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=47403.0468621/23041.3147872
=2.05730651

Gazprom PJSC's current ratio of this year was 1.8648997. Gazprom PJSC's current ratio of last year was 2.05730651. ==> Last year's current ratio is higher ==> Score 0.

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 11450. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=77311.9059447/92561.8645471
=0.83524577

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=74156.1682398/86934.3434343
=0.8530135

Gazprom PJSC's gross margin of this year was 0.83524577. Gazprom PJSC's gross margin of last year was 0.8530135. ==> 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 (Dec13)
=92561.8645471/222491.074681
=0.41602507

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=86934.3434343/197993.641331
=0.43907644

Gazprom PJSC's asset turnover of this year was 0.41602507. Gazprom PJSC's asset turnover of last year was 0.43907644. ==> 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+0+1+0+0+0+0+0
=3

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

Gazprom PJSC has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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.

Gazprom PJSC Annual Data

Dec13Dec14
Question 1 11
Question 2 11
Question 3 00
Question 4 11
Question 5 00
Question 6 10
Question 7 10
Question 8 10
Question 9 10
F-score 73

Gazprom PJSC Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Question 1 111
Question 2 111
Question 3 000
Question 4 111
Question 5 000
Question 6 110
Question 7 100
Question 8 100
Question 9 100
F-score 743
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