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Perry Ellis International Inc (NAS:PERY)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Perry Ellis International Inc has an F-score of 3 indicating the company's financial situation is typical for a stable company.

PERY' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 3

3
9

During the past 13 years, the highest Piotroski F-Score of Perry Ellis International Inc was 9. The lowest was 3. 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 (Apr14) TTM:Last Year (Apr13) TTM:
Net Income was 7.775 + -28.247 + -3.022 + -2.83 = $-26.3 Mil.
Cash Flow from Operations was -47.307 + 6.585 + -20.416 + 28.297 = $-32.8 Mil.
Revenue was 257.314 + 216.079 + 222.121 + 211.705 = $907.2 Mil.
Gross Profit was 87.665 + 74.197 + 71.364 + 68.546 = $301.8 Mil.
Total Assets at the begining of this year (Apr13) was $737.6 Mil.
Total Assets was $719.1 Mil.
Long-Term Debt was $237.2 Mil.
Total Current Assets was $436.9 Mil.
Total Current Liabilities was $88.6 Mil.
Net Income was 11.32 + 4.387 + 3.18 + -2.442 = $16.4 Mil.

Revenue was 262.319 + 258.345 + 236.248 + 209.437 = $966.3 Mil.
Gross Profit was 88.681 + 84.341 + 75.795 + 69.325 = $318.1 Mil.
Total Assets at the begining of last year (Apr12) was $728.2 Mil.
Total Assets was $737.6 Mil.
Long-Term Debt was $181.7 Mil.
Total Current Assets was $413.1 Mil.
Total Current Liabilities was $122.5 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.

Perry Ellis International Inc's current net income was -26.3. ==> 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.

Perry Ellis International Inc's current cash flow from operations was -32.8. ==> Negative ==> Score 0.

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 (Apr13)
=-26.324/737.642
=-0.03568669

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Apr12)
=16.445/728.157
=0.02258442

Perry Ellis International Inc's return on assets of this year was -0.03568669. Perry Ellis International Inc's return on assets of last year was 0.02258442. ==> 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.

Perry Ellis International Inc's current net income was -26.3. Perry Ellis International Inc's current cash flow from operations was -32.8. ==> -32.8 =< -26.3 ==> CFROA =< ROA ==> Score 0.

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)=Long-Term Debt/Total Assets
=237.218/719.094
=0.32988455

Gearing (Last Year)=Long-Term Debt/Total Assets
=181.725/737.642
=0.24635935

Perry Ellis International Inc's gearing of this year was 0.32988455. Perry Ellis International Inc's gearing of last year was 0.24635935. ==> 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)=Total Current Assets/Total Current Liabilities
=436.92/88.563
=4.93343721

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=413.125/122.452
=3.37377095

Perry Ellis International Inc's current ratio of this year was 4.93343721. Perry Ellis International Inc's current ratio of last year was 3.37377095. ==> 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.

Perry Ellis International Inc's number of shares in issue this year was 15. Perry Ellis International Inc's number of shares in issue last year was 15.3. ==> 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)=Gross Profit/Revenue
=301.772/907.219
=0.33263413

Gross Margin (Last Year)=Gross Profit/Revenue
=318.142/966.349
=0.3292206

Perry Ellis International Inc's gross margin of this year was 0.33263413. Perry Ellis International Inc's gross margin of last year was 0.3292206. ==> 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 (Apr13)
=907.219/737.642
=1.22989065

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Apr12)
=966.349/728.157
=1.32711627

Perry Ellis International Inc's asset turnover of this year was 1.22989065. Perry Ellis International Inc's asset turnover of last year was 1.32711627. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+0+0+0+0+1+1+1+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Perry Ellis International Inc has an F-score of 3 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.

Perry Ellis International Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Q1 1111011110
Q2 1111011111
Q3 1101011000
Q4 1111110011
Q5 1011010110
Q6 0100101101
Q7 0000110011
Q8 0011011001
Q9 0101001100
F-score 5657376555

Perry Ellis International Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Q1 1111111100
Q2 1111111110
Q3 0000001000
Q4 0111110110
Q5 1011111100
Q6 1100000111
Q7 0111000111
Q8 0000011111
Q9 1000010100
F-score 5555465853
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