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OAO Gazprom (OTCPK:OGZPY)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

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

OGZPY' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 6

4
8

During the past 8 years, the highest Piotroski F-Score of OAO Gazprom was 8. The lowest was 4. 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 7763.29919734 + 7641.57210075 + 5591.41987268 + 10535.9811791 = $31,532 Mil.
Cash Flow from Operations was 12457.65292 + 21585.8012732 + 0 + 14333.6008857 = $48,377 Mil.
Revenue was 40888.3753114 + 33339.2194852 + 30630.5286466 + 40449.515638 = $145,308 Mil.
Gross Profit was 39851.0379186 + 22949.9031276 + 38977.0274011 + 32103.0168835 = $133,881 Mil.
Total Assets at the begining of this year (Dec12) was $334,020 Mil.
Total Assets was $371,886 Mil.
Long-Term Debt was $40,686 Mil.
Total Current Assets was $79,232 Mil.
Total Current Liabilities was $38,513 Mil.
Net Income was 10210.4622198 + 8443.23277055 + 4174.53639635 + 10002.8508165 = $32,831 Mil.

Revenue was 39111.7630778 + 31025.1037919 + 27829.7259895 + 33913.036258 = $131,880 Mil.
Gross Profit was 28875.4497647 + 22041.0185441 + 20350.3736507 + 26608.1096042 = $97,875 Mil.
Total Assets at the begining of last year (Dec11) was $301,708 Mil.
Total Assets was $334,020 Mil.
Long-Term Debt was $32,603 Mil.
Total Current Assets was $66,669 Mil.
Total Current Liabilities was $41,235 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.

OAO Gazprom's current net income was 31,532. ==> 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.

OAO Gazprom's current cash flow from operations was 48,377. ==> 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 (Dec12)
=31532.2723498/334019.90036
=0.09440238

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=32831.0822032/301707.61406
=0.10881755

OAO Gazprom's return on assets of this year was 0.09440238. OAO Gazprom's return on assets of last year was 0.10881755. ==> Last year is higher ==> Score 0.

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.

OAO Gazprom's current net income was 31,532. OAO Gazprom's current cash flow from operations was 48,377. ==> 48,377 > 31,532 ==> 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
=40686.4655411/371885.856629
=0.10940579

Gearing (Last Year)=Long-Term Debt/Total Assets
=32602.6570717/334019.90036
=0.09760693

OAO Gazprom's gearing of this year was 0.10940579. OAO Gazprom's gearing of last year was 0.09760693. ==> Last year is lower than this year ==> Score 0.

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
=79232.4937725/38512.7318018
=2.05730651

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=66668.8624412/41234.9017437
=1.61680663

OAO Gazprom's current ratio of this year was 2.05730651. OAO Gazprom's current ratio of last year was 1.61680663. ==> This year's current ratio is higher. ==> Score 1.

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.

OAO Gazprom's number of shares in issue this year was 11450. OAO Gazprom's number of shares in issue last year was 11450. ==> 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
=133880.985331/145307.639081
=0.92136233

Gross Margin (Last Year)=Gross Profit/Revenue
=97874.9515638/131879.629117
=0.74215368

OAO Gazprom's gross margin of this year was 0.92136233. OAO Gazprom's gross margin of last year was 0.74215368. ==> 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 (Dec12)
=145307.639081/334019.90036
=0.43502689

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=131879.629117/301707.61406
=0.43711071

OAO Gazprom's asset turnover of this year was 0.43502689. OAO Gazprom's asset turnover of last year was 0.43711071. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+1+1+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

OAO Gazprom 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 own currency.

OAO Gazprom Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111
Q2 1111
Q3 1100
Q4 1111
Q5 1110
Q6 1001
Q7 1111
Q8 0001
Q9 1100
F-score 8756

OAO Gazprom Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1
Q2 1
Q3 0
Q4 1
Q5 0
Q6 1
Q7 1
Q8 1
Q9 0
F-score 0600040006
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