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

Good Sign:

Piotroski F-Score of 7 is 7, 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

OAO Gazprom has an F-score of 5 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: 5

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 7.


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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 5255.41103018 + 7182.36212279 + 7296.77419355 + 5801.43080125 = $25,536 Mil.
Cash Flow from Operations was 0 + 33760.8740895 + 11709.0270552 + 17909.0010406 = $63,379 Mil.
Revenue was 28789.8283039 + 31335.7440166 + 38431.2434964 + 40549.8699272 = $139,107 Mil.
Gross Profit was 35816.7273673 + 21570.7596254 + 37456.2434964 + 32697.1644121 = $127,541 Mil.
Average Total Assets from the begining of this year (Mar13)
to the end of this year (Mar14) was
(317764.255983 + 0 + 334701.248699 + 349537.877211 + 357371.019771) / 5 = $271,875 Mil.
Total Assets was $357,371 Mil.
Long-Term Debt was $43,211 Mil.
Total Current Assets was $78,892 Mil.
Total Current Liabilities was $31,230 Mil.
Net Income was 3923.67325702 + 8059.07908429 + 10335.2237253 + 9902.83558793 = $32,221 Mil.

Revenue was 26157.3361082 + 29179.396462 + 36776.9771072 + 38018.7565036 = $130,132 Mil.
Gross Profit was 19127.4453694 + 19353.4079084 + 33836.8366285 + 30991.8574402 = $103,310 Mil.
Average Total Assets from the begining of last year (Mar12)
to the end of last year (Mar13) was
(0 + 296903.668054 + 302273.933403 + 311051.925078 + 317764.255983) / 5 = $245,599 Mil.
Total Assets was $317,764 Mil.
Long-Term Debt was $32,497 Mil.
Total Current Assets was $67,400 Mil.
Total Current Liabilities was $30,974 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

OAO Gazprom's current net income (ttm) was 25,536. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

OAO Gazprom's current cash flow from operations (ttm) was 63,379. ==> 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 (TTM)/Average Total Assets from Mar13 to Mar14
=25535.9781478/271874.880333
=0.09392548

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Mar12 to Mar13
=32220.8116545/245598.756504
=0.13119289

OAO Gazprom's return on assets of this year was 0.09392548. OAO Gazprom's return on assets of last year was 0.13119289. ==> 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 (ttm) was 25,536. OAO Gazprom's current cash flow from operations (ttm) was 63,379. ==> 63,379 > 25,536 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar14)=Long-Term Debt/Total Assets
=43210.5098855/357371.019771
=0.12091218

Gearing (Last Year: Mar13)=Long-Term Debt/Total Assets
=32497.1383975/317764.255983
=0.10226807

OAO Gazprom's gearing of this year was 0.12091218. OAO Gazprom's gearing of last year was 0.10226807. ==> 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: Mar14)=Total Current Assets/Total Current Liabilities
=78892.2996878/31229.5525494
=2.52620653

Current Ratio (Last Year: Mar13)=Total Current Assets/Total Current Liabilities
=67400.4682622/30973.7252862
=2.17605301

OAO Gazprom's current ratio of this year was 2.52620653. OAO Gazprom's current ratio of last year was 2.17605301. ==> 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 11500. OAO Gazprom's number of shares in issue last year was 11450. ==> There is larger number of shares in issue this year. ==> Score 0.

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: TTM)=Gross Profit/Revenue
=127540.894901/139106.685744
=0.91685669

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=103309.547347/130132.466181
=0.79387989

OAO Gazprom's gross margin of this year was 0.91685669. OAO Gazprom's gross margin of last year was 0.79387989. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout 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)/Average Total Assets from Mar13 to Mar14
=139106.685744/271874.880333
=0.511657

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Mar12 to Mar13
=130132.466181/245598.756504
=0.529858

OAO Gazprom's asset turnover of this year was 0.511657. OAO Gazprom's asset turnover of last year was 0.529858. ==> 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+0+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

OAO Gazprom has an F-score of 5 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, Altman Z-Score, Beneish M-Score


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
Q4
Q5
Q6
Q7
Q8
Q9
F-score

OAO Gazprom Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1
Q2 1
Q3 0
Q4 1
Q5 0
Q6 1
Q7 1
Q8 1
Q9 1
F-score 6000400775
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