Switch to:
ONEOK Partners LP (NYSE:OKS)
Piotroski F-Score
4 (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 Partners LP has an F-score of 4 indicating the company's financial situation is typical for a stable company.

OKS' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 4

2
8

During the past 13 years, the highest Piotroski F-Score of ONEOK Partners LP was 8. The lowest was 2. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 648.93 + 685.05 + 265.392 + 214.434 = $1,814 Mil.
Cash Flow from Operations was 475.77 + 353.613 + 459.156 + 74.922 = $1,363 Mil.
Revenue was 3134.733 + 3448.914 + 3162.303 + 3065.735 = $12,812 Mil.
Gross Profit was 423.574 + 440.934 + 509.634 + 494.333 = $1,868 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(11179.821 + 12863.326 + 12862.608 + 12939.52 + 13748.515) / 5 = $12,719 Mil.
Total Assets was $13,749 Mil.
Long-Term Debt was $6,042 Mil.
Total Current Assets was $1,884 Mil.
Total Current Liabilities was $1,750 Mil.
Net Income was 232.275 + 210.405 + 156.599 + 202.367 = $802 Mil.

Revenue was 2547.46 + 2915.797 + 2517.447 + 2768.179 = $10,749 Mil.
Gross Profit was 419.737 + 399.543 + 370.599 + 411.953 = $1,602 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(9376.537 + 10792.593 + 10959.23 + 10696.007 + 11179.821) / 5 = $10,601 Mil.
Total Assets was $11,180 Mil.
Long-Term Debt was $4,800 Mil.
Total Current Assets was $1,310 Mil.
Total Current Liabilities was $1,835 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 Partners LP's current net income (ttm) was 1,814. ==> 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 Partners LP's current cash flow from operations (ttm) was 1,363. ==> 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
=1813.806/12718.758
=0.14260874

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=801.646/10600.8376
=0.07562101

ONEOK Partners LP's return on assets of this year was 0.14260874. ONEOK Partners LP's return on assets of last year was 0.07562101. ==> 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 Partners LP's current net income (ttm) was 1,814. ONEOK Partners LP's current cash flow from operations (ttm) was 1,363. ==> 1,363 =< 1,814 ==> CFROA =< ROA ==> Score 0.

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
=6041.618/13748.515
=0.43943786

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=4800.317/11179.821
=0.42937333

ONEOK Partners LP's gearing of this year was 0.43943786. ONEOK Partners LP's gearing of last year was 0.42937333. ==> 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
=1884.406/1750.369
=1.07657642

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=1310.368/1834.877
=0.71414487

ONEOK Partners LP's current ratio of this year was 1.07657642. ONEOK Partners LP's current ratio of last year was 0.71414487. ==> 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 Partners LP's number of shares in issue this year was 240.5. ONEOK Partners LP's number of shares in issue last year was 220.1. ==> 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
=1868.475/12811.685
=0.14584147

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1601.832/10748.883
=0.14902311

ONEOK Partners LP's gross margin of this year was 0.14584147. ONEOK Partners LP's gross margin of last year was 0.14902311. ==> 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
=12811.685/12718.758
=1.0073063

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=10748.883/10600.8376
=1.01396544

ONEOK Partners LP's asset turnover of this year was 1.0073063. ONEOK Partners LP's asset turnover of last year was 1.01396544. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+0+0+1+0+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

ONEOK Partners LP has an F-score of 4 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 Partners LP Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1010100111
Q4 1111111110
Q5 1010111000
Q6 1000011110
Q7 0000000000
Q8 0000010110
Q9 1111101101
F-score 7464666764

ONEOK Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 1110001111
Q4 1111110000
Q5 1100000000
Q6 0011000001
Q7 0000000000
Q8 1111100000
Q9 1000000010
F-score 7665434344
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