Switch to:
Prestige Brands Holdings Inc (NYSE:PBH)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Prestige Brands Holdings Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

PBH' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of Prestige Brands Holdings Inc was 8. The lowest was 3. 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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was 23.772 + 26.173 + 31.803 + 27.995 = $109.7 Mil.
Cash Flow from Operations was 75.395 + 43.521 + 47.069 + 45.861 = $211.8 Mil.
Revenue was 190.046 + 192.132 + 206.065 + 200.195 = $788.4 Mil.
Gross Profit was 110.07 + 112.236 + 119.94 + 116.784 = $459.0 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(2680.596 + 2669.405 + 2636.502 + 2626.891 + 2640.999) / 5 = $2650.8786 Mil.
Total Assets at the begining of this year (Dec14) was $2,680.6 Mil.
Long-Term Debt was $1,447.0 Mil.
Total Current Assets was $228.2 Mil.
Total Current Liabilities was $86.7 Mil.
Net Income was 16.001 + 16.732 + 16.463 + 21.293 = $70.5 Mil.

Revenue was 143.053 + 145.702 + 181.269 + 197.606 = $667.6 Mil.
Gross Profit was 78.837 + 81.866 + 102.542 + 111.745 = $375.0 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(1864.846 + 1795.663 + 1853.95 + 2725.67 + 2680.596) / 5 = $2184.145 Mil.
Total Assets at the begining of last year (Dec13) was $1,864.8 Mil.
Long-Term Debt was $1,638.0 Mil.
Total Current Assets was $200.8 Mil.
Total Current Liabilities was $91.0 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.

Prestige Brands Holdings Inc's current net income (TTM) was 109.7. ==> Positive ==> Score 1.

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.

Prestige Brands Holdings Inc's current cash flow from operations (TTM) was 211.8. ==> 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 (Dec14)
=109.743/2680.596
=0.04093978

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=70.489/1864.846
=0.03779883

Prestige Brands Holdings Inc's return on assets of this year was 0.04093978. Prestige Brands Holdings Inc's return on assets of last year was 0.03779883. ==> 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.

Prestige Brands Holdings Inc's current net income (TTM) was 109.7. Prestige Brands Holdings Inc's current cash flow from operations (TTM) was 211.8. ==> 211.8 > 109.7 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=1447.032/2650.8786
=0.54586883

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=1637.961/2184.145
=0.74993235

Prestige Brands Holdings Inc's gearing of this year was 0.54586883. Prestige Brands Holdings Inc's gearing of last year was 0.74993235. ==> This year is lower or equal to last year. ==> Score 1.

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: Dec15)=Total Current Assets/Total Current Liabilities
=228.155/86.721
=2.63090832

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=200.762/91.034
=2.20535185

Prestige Brands Holdings Inc's current ratio of this year was 2.63090832. Prestige Brands Holdings Inc's current ratio of last year was 2.20535185. ==> 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.

Prestige Brands Holdings Inc's number of shares in issue this year was 53.2. Prestige Brands Holdings Inc's number of shares in issue last year was 52.7. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=459.03/788.438
=0.58220177

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=374.99/667.63
=0.56167338

Prestige Brands Holdings Inc's gross margin of this year was 0.58220177. Prestige Brands Holdings Inc's gross margin of last year was 0.56167338. ==> This year's gross margin is higher. ==> Score 1.

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 (Dec14)
=788.438/2680.596
=0.29412787

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=667.63/1864.846
=0.35800811

Prestige Brands Holdings Inc's asset turnover of this year was 0.29412787. Prestige Brands Holdings Inc's asset turnover of last year was 0.35800811. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

Prestige Brands Holdings Inc has an F-score of 7. 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.

Prestige Brands Holdings Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
Question 1 110111111
Question 2 111111111
Question 3 100100111
Question 4 111111111
Question 5 111100110
Question 6 011001010
Question 7 001000000
Question 8 001101111
Question 9 110110001
F-score 666745676

Prestige Brands Holdings Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1010001111
Question 4 1111111111
Question 5 1111000011
Question 6 1111010011
Question 7 0000000000
Question 8 1110001111
Question 9 0000011100
F-score 7675356677
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)

GuruFocus Premium Plus Membership

FEEDBACK