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

The zones of discrimination were as such:

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

Prestige Brands Holdings Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

PBH' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 6

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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 3.13 + 32.792 + 20.692 + 19.349 = $76.0 Mil.
Cash Flow from Operations was 25.262 + 32.8 + 22.798 + 36.729 = $117.6 Mil.
Revenue was 146.212 + 168.442 + 142.971 + 154.513 = $612.1 Mil.
Gross Profit was 81.809 + 94.719 + 83.483 + 88.07 = $348.1 Mil.
Total Assets at the begining of this year (Dec12) was $1,731.4 Mil.
Total Assets was $1,864.8 Mil.
Long-Term Debt was $981.5 Mil.
Total Current Assets was $244.5 Mil.
Total Current Liabilities was $134.1 Mil.
Net Income was 12.257 + 19.244 + 14.655 + -0.015 = $46.1 Mil.

Revenue was 160.232 + 161.855 + 146.997 + 133.996 = $603.1 Mil.
Gross Profit was 84.997 + 90.545 + 83.604 + 68.488 = $327.6 Mil.
Total Assets at the begining of last year (Dec11) was $1,045.8 Mil.
Total Assets was $1,731.4 Mil.
Long-Term Debt was $1,000.3 Mil.
Total Current Assets was $151.2 Mil.
Total Current Liabilities was $88.8 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.

Prestige Brands Holdings Inc's current net income was 76.0. ==> 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.

Prestige Brands Holdings Inc's current cash flow from operations was 117.6. ==> 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)
=75.963/1731.389
=0.04387402

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=46.141/1045.847
=0.04411831

Prestige Brands Holdings Inc's return on assets of this year was 0.04387402. Prestige Brands Holdings Inc's return on assets of last year was 0.04411831. ==> 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.

Prestige Brands Holdings Inc's current net income was 76.0. Prestige Brands Holdings Inc's current cash flow from operations was 117.6. ==> 117.6 > 76.0 ==> 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
=981.511/1864.846
=0.52632282

Gearing (Last Year)=Long-Term Debt/Total Assets
=1000.3/1731.389
=0.57774423

Prestige Brands Holdings Inc's gearing of this year was 0.52632282. Prestige Brands Holdings Inc's gearing of last year was 0.57774423. ==> This year is lower. ==> Score 1.

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
=244.501/134.063
=1.82377688

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=151.222/88.75
=1.70390986

Prestige Brands Holdings Inc's current ratio of this year was 1.82377688. Prestige Brands Holdings Inc's current ratio of last year was 1.70390986. ==> 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.

Prestige Brands Holdings Inc's number of shares in issue this year was 52.4. Prestige Brands Holdings Inc's number of shares in issue last year was 51.5. ==> 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
=348.081/612.138
=0.56863158

Gross Margin (Last Year)=Gross Profit/Revenue
=327.634/603.08
=0.54326789

Prestige Brands Holdings Inc's gross margin of this year was 0.56863158. Prestige Brands Holdings Inc's gross margin of last year was 0.54326789. ==> 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 (Dec12)
=612.138/1731.389
=0.35355313

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=603.08/1045.847
=0.57664266

Prestige Brands Holdings Inc's asset turnover of this year was 0.35355313. Prestige Brands Holdings Inc's asset turnover of last year was 0.57664266. ==> 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+1+1+1+0+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Prestige Brands Holdings Inc 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.

Prestige Brands Holdings Inc Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
Q1 111101111
Q2 111111111
Q3 101001001
Q4 111111111
Q5 011101001
Q6 010110010
Q7 000010000
Q8 010011011
Q9 101101100
F-score 566657456

Prestige Brands Holdings Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1100011110
Q4 1111111111
Q5 0100001111
Q6 0011100011
Q7 0000000000
Q8 0011111111
Q9 1001110000
F-score 5556666676
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