Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Coastal Contacts has an F-score of 2. It is a bad or low score, which usually implies poor business operation.
The historical rank and industry rank for Coastal Contacts's Piotroski F-Score or its related term are showing as below:
Coastal Contacts Piotroski F-Score Historical Data
The historical data trend for Coastal Contacts's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
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.
Coastal Contacts's current Net Income (TTM) was -105.
==> 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.
Coastal Contacts's return on assets of this year was -0.19339336. Coastal Contacts's return on assets of last year was -0.10293591.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Coastal Contacts's gearing of this year was 0.04902404. Coastal Contacts's gearing of last year was 0.01903387.
==> 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
Coastal Contacts's current ratio of this year was 1.13168117. Coastal Contacts's current ratio of last year was 1.01226509.
==> 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.
Coastal Contacts's number of shares in issue this year was 0. Coastal Contacts's number of shares in issue last year was 0.
==> 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.
Coastal Contacts's gross margin of this year was 0.42205308. Coastal Contacts's gross margin of last year was 0.43240416.
==> 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
Coastal Contacts's asset turnover of this year was 2.46655367. Coastal Contacts's asset turnover of last year was 2.62487058.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Coastal Contacts has an F-score of 2. It is a bad or low score, which usually implies poor business operation.
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.
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.
Coastal Contacts Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Coastal Contacts's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Coastal Contacts Inc. was incorporated under the Canada Business Corporations Act on December 14, 2000. The Company is an online retailer of vision care products. It is a direct-to-consumer retailer of vision care products and services. The Company sells contact lenses, eyeglasses and related products mainly through the Company's internet websites, although customers may also place orders over the telephone. It has operations and distribution centers in North America, Europe and Australia. The Company sells contact lenses manufactured by multinational companies such as Johnson and Johnson Inc., CIBA Vision Corporation (a division of Alcon), Bausch & Lomb Inc. and Coopervision Inc. It sells eyeglasses, which are mainly assembled in the Company's own laboratories, composed of frames and lenses purchased from a variety of different suppliers. The frames it uses in its eyeglasses include both branded frames and the Company's own private label frames such as Derek Cardigan, Kam Dhillon, Ltede and Joseph Marc. The Company also sells a variety of vision related products such as sunglasses and contact lens solutions including its own Healthy Eyes brand multipurpose contact lens solution for soft contact lenses. It offers substantially all of the soft contact lenses produced by the contact lens manufacturers, including Johnson & Johnson Inc., CIBA Vision Corporation, Bausch & Lomb Inc. and Coopervision Inc. The Company conducts all of its product fulfillment operations from the Company's distribution facilities in Vancouver, British Columbia, Canada; Stockholm, Sweden; Blaine, Washington and Sydney, Australia.
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