Switch to:
ON Semiconductor Corp (NAS:ONNN)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, 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

ON Semiconductor Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

ONNN' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 8

2
9

During the past 13 years, the highest Piotroski F-Score of ON Semiconductor Corp was 9. 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 58.4 + 28.7 + 51.8 + 47.7 = $187 Mil.
Cash Flow from Operations was 74.9 + 127 + 59.9 + 55.2 = $317 Mil.
Revenue was 706.5 + 718 + 715.4 + 688.3 = $2,828 Mil.
Gross Profit was 250.8 + 252.9 + 249.2 + 231.8 = $985 Mil.
Total Assets at the begining of this year (Mar13) was $3,233 Mil.
Total Assets was $3,287 Mil.
Long-Term Debt was $747 Mil.
Total Current Assets was $1,737 Mil.
Total Current Liabilities was $824 Mil.
Net Income was 22.6 + -138.2 + 12.5 + 6.9 = $-96 Mil.

Revenue was 661 + 680.2 + 725.5 + 744.8 = $2,812 Mil.
Gross Profit was 204.5 + 210.4 + 238 + 258.3 = $911 Mil.
Total Assets at the begining of last year (Mar12) was $3,829 Mil.
Total Assets was $3,233 Mil.
Long-Term Debt was $707 Mil.
Total Current Assets was $1,618 Mil.
Total Current Liabilities was $874 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.

ON Semiconductor Corp's current net income was 187. ==> 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.

ON Semiconductor Corp's current cash flow from operations was 317. ==> 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 (Mar13)
=186.6/3232.7
=0.05772265

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=-96.2/3829.2
=-0.02512274

ON Semiconductor Corp's return on assets of this year was 0.05772265. ON Semiconductor Corp's return on assets of last year was -0.02512274. ==> 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.

ON Semiconductor Corp's current net income was 187. ON Semiconductor Corp's current cash flow from operations was 317. ==> 317 > 187 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=746.5/3286.7
=0.22712751

Gearing (Last Year)=Long-Term Debt/Total Assets
=706.8/3232.7
=0.21864076

ON Semiconductor Corp's gearing of this year was 0.22712751. ON Semiconductor Corp's gearing of last year was 0.21864076. ==> 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
=1737.3/824.2
=2.10786217

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1617.5/874
=1.8506865

ON Semiconductor Corp's current ratio of this year was 2.10786217. ON Semiconductor Corp's current ratio of last year was 1.8506865. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

ON Semiconductor Corp's number of shares in issue this year was 444.5. ON Semiconductor Corp's number of shares in issue last year was 452.5. ==> There is the same number of shares in issue this year, or fewer. ==> 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
=984.7/2828.2
=0.34817198

Gross Margin (Last Year)=Gross Profit/Revenue
=911.2/2811.5
=0.32409746

ON Semiconductor Corp's gross margin of this year was 0.34817198. ON Semiconductor Corp's gross margin of last year was 0.32409746. ==> 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 (Mar13)
=2828.2/3232.7
=0.8748724

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=2811.5/3829.2
=0.73422647

ON Semiconductor Corp's asset turnover of this year was 0.8748724. ON Semiconductor Corp's asset turnover of last year was 0.73422647. ==> 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+1+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

ON Semiconductor Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


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.

ON Semiconductor Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0111011101
Q2 1111111111
Q3 1110011001
Q4 1111111111
Q5 1111111110
Q6 0011101001
Q7 0001000011
Q8 1110101011
Q9 1110101101
F-score 6786658558

ON Semiconductor Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1101000011
Q2 1111111111
Q3 0000000011
Q4 1111111111
Q5 1111101100
Q6 0000011111
Q7 0010111111
Q8 0001111011
Q9 1000000111
F-score 5445556688
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
Email Hide