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ONEOK Partners, L.P. (NYSE:OKS)
Piotroski F-Score
2 (As of Today)

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

ONEOK Partners, L.P. has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

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

2
8

During the past 13 years, the highest Piotroski F-Score of ONEOK Partners, L.P. 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 685.05 + 648.93 + 202.367 + 156.599 = $1,693 Mil.
Cash Flow from Operations was 353.613 + 270.657 + 202.024 + 181.437 = $1,008 Mil.
Revenue was 3448.914 + 3134.733 + 2768.179 + 2517.447 = $11,869 Mil.
Gross Profit was 440.934 + 423.574 + 411.953 + 370.599 = $1,647 Mil.
Total Assets at the begining of this year (Dec12) was $10,959 Mil.
Total Assets was $12,863 Mil.
Long-Term Debt was $6,045 Mil.
Total Current Assets was $1,583 Mil.
Total Current Liabilities was $1,706 Mil.
Net Income was 631.215 + 696.825 + 206.467 + 238.843 = $1,773 Mil.

Revenue was 2915.797 + 2547.46 + 2124.806 + 2594.088 = $10,182 Mil.
Gross Profit was 399.543 + 419.737 + 401.462 + 421.09 = $1,642 Mil.
Total Assets at the begining of last year (Dec11) was $8,947 Mil.
Total Assets was $10,959 Mil.
Long-Term Debt was $4,804 Mil.
Total Current Assets was $1,892 Mil.
Total Current Liabilities was $1,570 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.

ONEOK Partners, L.P.'s current net income was 1,693. ==> 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.

ONEOK Partners, L.P.'s current cash flow from operations was 1,008. ==> 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)
=1692.946/10959.23
=0.15447673

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=1773.35/8946.676
=0.19821328

ONEOK Partners, L.P.'s return on assets of this year was 0.15447673. ONEOK Partners, L.P.'s return on assets of last year was 0.19821328. ==> 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.

ONEOK Partners, L.P.'s current net income was 1,693. ONEOK Partners, L.P.'s current cash flow from operations was 1,008. ==> 1,008 =< 1,693 ==> CFROA =< ROA ==> Score 0.

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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=6044.867/12862.608
=0.46995656

Gearing (Last Year)=Long-Term Debt/Total Assets
=4803.629/10959.23
=0.43831811

ONEOK Partners, L.P.'s gearing of this year was 0.46995656. ONEOK Partners, L.P.'s gearing of last year was 0.43831811. ==> Last year is lower ==> 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
=1583.103/1706.018
=0.92795211

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1891.708/1570.432
=1.2045781

ONEOK Partners, L.P.'s current ratio of this year was 0.92795211. ONEOK Partners, L.P.'s current ratio of last year was 1.2045781. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

ONEOK Partners, L.P.'s number of shares in issue this year was 231.7. ONEOK Partners, L.P.'s number of shares in issue last year was 219.8. ==> There is more 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)=Gross Profit/Revenue
=1647.06/11869.273
=0.13876671

Gross Margin (Last Year)=Gross Profit/Revenue
=1641.832/10182.151
=0.16124609

ONEOK Partners, L.P.'s gross margin of this year was 0.13876671. ONEOK Partners, L.P.'s gross margin of last year was 0.16124609. ==> Last year's gross margin is higher ==> Score 0.

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)
=11869.273/10959.23
=1.08303895

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=10182.151/8946.676
=1.13809319

ONEOK Partners, L.P.'s asset turnover of this year was 1.08303895. ONEOK Partners, L.P.'s asset turnover of last year was 1.13809319. ==> 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+0+0+0+0+0+0
=2

Good or high score = 8 or 9

Bad or low score = 0 or 1

ONEOK Partners, L.P. has an F-score of 2. 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.

ONEOK Partners, L.P. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1110100110
Q4 1111111100
Q5 1010111000
Q6 1000011110
Q7 0000000000
Q8 0000010110
Q9 1110101100
F-score 7563666752

ONEOK Partners, L.P. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1111111100
Q4 1111000000
Q5 0011000000
Q6 1100110000
Q7 0100000000
Q8 0111111000
Q9 1110000000
F-score 6876554322
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