Switch to:
Pep Boys - Manny Moe & Jack (NYSE:PBY)
Piotroski F-Score
5 (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

Pep Boys - Manny Moe & Jack has an F-score of 5 indicating the company's financial situation is typical for a stable company.

PBY' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 5

2
8

During the past 13 years, the highest Piotroski F-Score of Pep Boys - Manny Moe & Jack was 8. The lowest was 2. And the median was 5.


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 (Oct14) TTM:Last Year (Oct13) TTM:
Net Income was -3.331 + 1.608 + -0.273 + -1.964 = $-4 Mil.
Cash Flow from Operations was -3.45 + 11.454 + 4.104 + -3.933 = $8 Mil.
Revenue was 495.733 + 538.821 + 525.773 + 517.584 = $2,078 Mil.
Gross Profit was 104.016 + 133.126 + 124.297 + 118.334 = $480 Mil.
Average Total Assets from the begining of this year (Oct13)
to the end of this year (Oct14) was
(1589.247 + 1605.481 + 1592.951 + 1580.732 + 1572.401) / 5 = $1588.1624 Mil.
Total Assets at the begining of this year (Oct13) was $1,589 Mil.
Long-Term Debt was $230 Mil.
Total Current Assets was $807 Mil.
Total Current Liabilities was $642 Mil.
Net Income was -14.541 + 3.863 + 5.368 + 0.964 = $-4 Mil.

Revenue was 530.847 + 536.173 + 527.619 + 507.042 = $2,102 Mil.
Gross Profit was 117.207 + 121.84 + 138.708 + 122.812 = $501 Mil.
Average Total Assets from the begining of last year (Oct12)
to the end of last year (Oct13) was
(1603.777 + 1603.949 + 1595.928 + 1583.329 + 1589.247) / 5 = $1595.246 Mil.
Total Assets at the begining of last year (Oct12) was $1,604 Mil.
Long-Term Debt was $197 Mil.
Total Current Assets was $815 Mil.
Total Current Liabilities was $675 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.

Pep Boys - Manny Moe & Jack's current net income (TTM) was -4. ==> Negative ==> Score 0.

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.

Pep Boys - Manny Moe & Jack's current cash flow from operations (TTM) was 8. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Oct13)
=-3.96/1589.247
=-0.00249175

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=-4.346/1603.777
=-0.00270985

Pep Boys - Manny Moe & Jack's return on assets of this year was -0.00249175. Pep Boys - Manny Moe & Jack's return on assets of last year was -0.00270985. ==> 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.

Pep Boys - Manny Moe & Jack's current net income (TTM) was -4. Pep Boys - Manny Moe & Jack's current cash flow from operations (TTM) was 8. ==> 8 > -4 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct14)=Long-Term Debt/Average Total Assets from Oct13 to Oct14
=229.5/1588.1624
=0.14450663

Gearing (Last Year: Oct13)=Long-Term Debt/Average Total Assets from Oct12 to Oct13
=196.5/1595.246
=0.12317849

Pep Boys - Manny Moe & Jack's gearing of this year was 0.14450663. Pep Boys - Manny Moe & Jack's gearing of last year was 0.12317849. ==> Last year is lower than this year ==> 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: Oct14)=Total Current Assets/Total Current Liabilities
=806.91/642.251
=1.25637796

Current Ratio (Last Year: Oct13)=Total Current Assets/Total Current Liabilities
=815.191/675.225
=1.20728794

Pep Boys - Manny Moe & Jack's current ratio of this year was 1.25637796. Pep Boys - Manny Moe & Jack's current ratio of last year was 1.20728794. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Pep Boys - Manny Moe & Jack's number of shares in issue this year was 53.6. Pep Boys - Manny Moe & Jack's number of shares in issue last year was 53.9. ==> There is smaller number of shares in issue this year, or the same. ==> 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: TTM)=Gross Profit/Revenue
=479.773/2077.911
=0.23089199

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=500.567/2101.681
=0.23817459

Pep Boys - Manny Moe & Jack's gross margin of this year was 0.23089199. Pep Boys - Manny Moe & Jack's gross margin of last year was 0.23817459. ==> Last year's gross margin is higher ==> Score 0.

Q9. 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 (Oct13)
=2077.911/1589.247
=1.30748147

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=2101.681/1603.777
=1.31045713

Pep Boys - Manny Moe & Jack's asset turnover of this year was 1.30748147. Pep Boys - Manny Moe & Jack's asset turnover of last year was 1.31045713. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+1+1+0+1+1+0+0
=5

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

Pep Boys - Manny Moe & Jack has an F-score of 5 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.

Pep Boys - Manny Moe & Jack Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Q1 1000011111
Q2 1011011111
Q3 1010111000
Q4 1011011111
Q5 0011111110
Q6 1101010001
Q7 0111000000
Q8 0010111001
Q9 1010111001
F-score 6275487446

Pep Boys - Manny Moe & Jack Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Q1 1111001100
Q2 1111111111
Q3 0000000011
Q4 1111111111
Q5 1111100000
Q6 1000011011
Q7 0100001011
Q8 0000011100
Q9 0000011110
F-score 5544357565
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