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Perry Ellis International Inc (NAS:PERY)
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

Perry Ellis International Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

PERY' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 5

3
8

During the past 13 years, the highest Piotroski F-Score of Perry Ellis International Inc was 8. 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 (Jan15) TTM:Last Year (Jan14) TTM:
Net Income was 7.775 + -1.616 + -0.437 + -42.897 = $-37.2 Mil.
Cash Flow from Operations was -47.307 + 94.285 + -13.145 + 21.31 = $55.1 Mil.
Revenue was 257.314 + 203.532 + 211.44 + 217.686 = $890.0 Mil.
Gross Profit was 87.665 + 70.464 + 70.307 + 74.568 = $303.0 Mil.
Average Total Assets from the begining of this year (Jan14)
to the end of this year (Jan15) was
(706.735 + 719.094 + 674.537 + 655.61 + 684.989) / 5 = $688.193 Mil.
Total Assets at the begining of this year (Jan14) was $706.7 Mil.
Long-Term Debt was $172.1 Mil.
Total Current Assets was $398.9 Mil.
Total Current Liabilities was $158.8 Mil.
Net Income was 11.32 + -2.83 + -3.022 + -28.247 = $-22.8 Mil.

Revenue was 262.319 + 211.705 + 222.121 + 216.079 = $912.2 Mil.
Gross Profit was 88.681 + 68.546 + 71.364 + 74.197 = $302.8 Mil.
Average Total Assets from the begining of last year (Jan13)
to the end of last year (Jan14) was
(763.129 + 737.642 + 735.083 + 723.08 + 706.735) / 5 = $733.1338 Mil.
Total Assets at the begining of last year (Jan13) was $763.1 Mil.
Long-Term Debt was $181.0 Mil.
Total Current Assets was $424.4 Mil.
Total Current Liabilities was $146.2 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.

Perry Ellis International Inc's current net income (TTM) was -37.2. ==> 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.

Score 1 if positive, 0 if negative.

Perry Ellis International Inc's current cash flow from operations (TTM) was 55.1. ==> 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 (Jan14)
=-37.175/706.735
=-0.05260105

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jan13)
=-22.779/763.129
=-0.02984947

Perry Ellis International Inc's return on assets of this year was -0.05260105. Perry Ellis International Inc's return on assets of last year was -0.02984947. ==> Last year is higher ==> Score 0.

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.

Perry Ellis International Inc's current net income (TTM) was -37.2. Perry Ellis International Inc's current cash flow from operations (TTM) was 55.1. ==> 55.1 > -37.2 ==> 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: Jan15)=Long-Term Debt/Average Total Assets from Jan14 to Jan15
=172.109/688.193
=0.25008827

Gearing (Last Year: Jan14)=Long-Term Debt/Average Total Assets from Jan13 to Jan14
=181.006/733.1338
=0.24689354

Perry Ellis International Inc's gearing of this year was 0.25008827. Perry Ellis International Inc's gearing of last year was 0.24689354. ==> 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

Current Ratio (This Year: Jan15)=Total Current Assets/Total Current Liabilities
=398.942/158.772
=2.51267226

Current Ratio (Last Year: Jan14)=Total Current Assets/Total Current Liabilities
=424.389/146.192
=2.90295639

Perry Ellis International Inc's current ratio of this year was 2.51267226. Perry Ellis International Inc's current ratio of last year was 2.90295639. ==> Last year's current ratio is higher ==> Score 0.

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.

Perry Ellis International Inc's number of shares in issue this year was 14.8. Perry Ellis International Inc's number of shares in issue last year was 14.8. ==> 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.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=303.004/889.972
=0.34046464

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=302.788/912.224
=0.33192286

Perry Ellis International Inc's gross margin of this year was 0.34046464. Perry Ellis International Inc's gross margin of last year was 0.33192286. ==> 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 (Jan14)
=889.972/706.735
=1.25927257

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jan13)
=912.224/763.129
=1.19537326

Perry Ellis International Inc's asset turnover of this year was 1.25927257. Perry Ellis International Inc's asset turnover of last year was 1.19537326. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

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

Perry Ellis International Inc 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.

Perry Ellis International Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Question 1 1110111100
Question 2 1110111111
Question 3 1010110000
Question 4 1111100111
Question 5 0110101100
Question 6 1001011010
Question 7 0001100111
Question 8 0110110011
Question 9 1010011001
F-score 6573765555

Perry Ellis International Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
Question 1 1111000000
Question 2 1111101111
Question 3 0010000000
Question 4 1101101111
Question 5 1111000001
Question 6 0001111100
Question 7 0001111110
Question 8 0111111111
Question 9 0101000011
F-score 4658535550
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