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Orbit International Corp (OTCPK:ORBT)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

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


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 (Sep15) TTM:Last Year (Dec13) TTM:
Net Income was -1.062 + -0.171 + -0.115 + 0.314 = $-1.03 Mil.
Cash Flow from Operations was -0.855 + 1.338 + 0.042 + 0 = $0.53 Mil.
Revenue was 5.007 + 5.396 + 4.8 + 5.217 = $20.42 Mil.
Gross Profit was 1.5 + 2.237 + 1.763 + 1.955 = $7.46 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Sep15) was
(19.731 + 18.685 + 18.364 + 0 + 17.03) / 5 = $14.762 Mil.
Total Assets at the begining of this year (Dec13) was $19.73 Mil.
Long-Term Debt was $1.50 Mil.
Total Current Assets was $15.65 Mil.
Total Current Liabilities was $1.62 Mil.
Net Income was -0.08 + 0.109 + 0.127 + -2.726 = $-2.57 Mil.

Revenue was 6.447 + 6.475 + 6.109 + 5.807 = $24.84 Mil.
Gross Profit was 2.491 + 2.497 + 2.366 + 1.989 = $9.34 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(24.976 + 23.941 + 23.491 + 22.893 + 19.731) / 5 = $23.0064 Mil.
Total Assets at the begining of last year (Dec12) was $24.98 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $17.85 Mil.
Total Current Liabilities was $3.84 Mil.

Profitability

Question 1. 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.

Orbit International Corp's current net income (TTM) was -1.03. ==> Negative ==> Score 0.

Question 2. 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.

Orbit International Corp's current cash flow from operations (TTM) was 0.53. ==> Positive ==> Score 1.

Question 3. 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)/Total Assets at the Beginning of This Year (Dec13)
=-1.034/19.731
=-0.05240485

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=-2.57/24.976
=-0.10289878

Orbit International Corp's return on assets of this year was -0.05240485. Orbit International Corp's return on assets of last year was -0.10289878. ==> This year is higher. ==> Score 1.

Question 4. 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.

Orbit International Corp's current net income (TTM) was -1.03. Orbit International Corp's current cash flow from operations (TTM) was 0.53. ==> 0.53 > -1.03 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

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

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

Gearing (This Year: Sep15)=Long-Term Debt/Average Total Assets from Dec13 to Sep15
=1.495/14.762
=0.10127354

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=0/23.0064
=0

Orbit International Corp's gearing of this year was 0.10127354. Orbit International Corp's gearing of last year was 0. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Sep15)=Total Current Assets/Total Current Liabilities
=15.653/1.622
=9.65043157

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=17.853/3.837
=4.65285379

Orbit International Corp's current ratio of this year was 9.65043157. Orbit International Corp's current ratio of last year was 4.65285379. ==> This year's current ratio is higher. ==> Score 1.

Question 7. 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.

Orbit International Corp's number of shares in issue this year was 4.3. Orbit International Corp's number of shares in issue last year was 4.5. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. 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
=7.455/20.42
=0.36508325

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=9.343/24.838
=0.3761575

Orbit International Corp's gross margin of this year was 0.36508325. Orbit International Corp's gross margin of last year was 0.3761575. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year 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 (TTM)/Total Assets at the Beginning of This Year (Dec13)
=20.42/19.731
=1.03491967

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=24.838/24.976
=0.9944747

Orbit International Corp's asset turnover of this year was 1.03491967. Orbit International Corp's asset turnover of last year was 0.9944747. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+1+1+0+1+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Orbit International Corp 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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Orbit International Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Question 1 1111000100
Question 2 1111011101
Question 3 1100010100
Question 4 0110111001
Question 5 0010101111
Question 6 1000110101
Question 7 0000110011
Question 8 0101000100
Question 9 1100011100
F-score 5643464725

Orbit International Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Sep15
Question 1 101110000
Question 2 001111111
Question 3 100100001
Question 4 000111111
Question 5 111001010
Question 6 000111111
Question 7 111111111
Question 8 100000000
Question 9 100000001
F-score 624655456
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