Switch to:
ONEOK Inc (NYSE:OKE)
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

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

OKE' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 6

2
8

During the past 13 years, the highest Piotroski F-Score of ONEOK Inc was 8. The lowest was 2. 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 own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 62.356 + 90.737 + 93.515 + 61.59 = $308 Mil.
Cash Flow from Operations was 233.265 + 273.221 + 490.383 + 45.924 = $1,043 Mil.
Revenue was 3571.925 + 4140.111 + 3163.296 + 3066.882 = $13,942 Mil.
Gross Profit was 561.188 + 651.654 + 510.627 + 495.48 = $2,219 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(15842.274 + 17610.343 + 17707.558 + 13653.134 + 14384.538) / 5 = $15,840 Mil.
Total Assets was $14,385 Mil.
Long-Term Debt was $7,197 Mil.
Total Current Assets was $2,060 Mil.
Total Current Liabilities was $1,851 Mil.
Net Income was 65.219 + 111.542 + 112.521 + 0.919 = $290 Mil.

Revenue was 3028.775 + 3659.924 + 2517.955 + 2768.984 = $11,976 Mil.
Gross Profit was 553.972 + 604.32 + 371.107 + 412.758 = $1,942 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(13817.191 + 15364.307 + 15855.275 + 15446.219 + 15842.274) / 5 = $15,265 Mil.
Total Assets was $15,842 Mil.
Long-Term Debt was $6,511 Mil.
Total Current Assets was $1,890 Mil.
Total Current Liabilities was $2,649 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.

ONEOK Inc's current net income (ttm) was 308. ==> 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.

ONEOK Inc's current cash flow from operations (ttm) was 1,043. ==> 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 Jun13 to Jun14
=308.198/15839.5694
=0.01945747

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=290.201/15265.0532
=0.01901081

ONEOK Inc's return on assets of this year was 0.01945747. ONEOK Inc's return on assets of last year was 0.01901081. ==> This year is higher. ==> Score 1.

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.

ONEOK Inc's current net income (ttm) was 308. ONEOK Inc's current cash flow from operations (ttm) was 1,043. ==> 1,043 > 308 ==> 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: Jun14)=Long-Term Debt/Total Assets
=7196.988/14384.538
=0.50032806

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=6511.359/15842.274
=0.41101164

ONEOK Inc's gearing of this year was 0.50032806. ONEOK Inc's gearing of last year was 0.41101164. ==> 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: Jun14)=Total Current Assets/Total Current Liabilities
=2059.655/1851.171
=1.11262277

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=1889.589/2648.779
=0.71338115

ONEOK Inc's current ratio of this year was 1.11262277. ONEOK Inc's current ratio of last year was 0.71338115. ==> 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.

ONEOK Inc's number of shares in issue this year was 210.5. ONEOK Inc's number of shares in issue last year was 208.9. ==> 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
=2218.949/13942.214
=0.15915327

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1942.157/11975.638
=0.16217566

ONEOK Inc's gross margin of this year was 0.15915327. ONEOK Inc's gross margin of last year was 0.16217566. ==> Last year's gross margin is higher ==> Score 0.

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 Jun13 to Jun14
=13942.214/15839.5694
=0.88021421

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=11975.638/15265.0532
=0.78451335

ONEOK Inc's asset turnover of this year was 0.88021421. ONEOK Inc's asset turnover of last year was 0.78451335. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

ONEOK Inc 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, 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.

ONEOK Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1011111111
Q3 1100101100
Q4 0011111111
Q5 1001101000
Q6 0110000010
Q7 0001100111
Q8 0010010010
Q9 1100101101
F-score 5455746665

ONEOK Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 1110000001
Q4 1111111111
Q5 1000000000
Q6 0011000011
Q7 1111111000
Q8 0111100000
Q9 1000000011
F-score 7676544356
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)
Free 7-day Trial
FEEDBACK