Switch to:
Pier 1 Imports Inc (NYSE:PIR)
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Pier 1 Imports Inc has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

PIR' s 10-Year Piotroski F-Score Range
Min: 1   Max: 9
Current: 3

1
9

During the past 13 years, the highest Piotroski F-Score of Pier 1 Imports Inc was 9. The lowest was 1. 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 (Nov14) TTM:Last Year (Nov13) TTM:
Net Income was 42.592 + 15.055 + 9.158 + 17.86 = $85 Mil.
Cash Flow from Operations was 98.07 + 27.133 + -97.702 + 24.36 = $52 Mil.
Revenue was 515.786 + 419.059 + 418.622 + 484.501 = $1,838 Mil.
Gross Profit was 214.436 + 167.714 + 162.637 + 204.913 = $750 Mil.
Average Total Assets from the begining of this year (Nov13)
to the end of this year (Nov14) was
(872.315 + 803.623 + 945.673 + 885.309 + 921.383) / 5 = $885.6606 Mil.
Total Assets at the begining of this year (Nov13) was $872 Mil.
Long-Term Debt was $205 Mil.
Total Current Assets was $667 Mil.
Total Current Liabilities was $322 Mil.
Net Income was 61.704 + 20.347 + 17.834 + 26.758 = $127 Mil.

Revenue was 551.625 + 394.853 + 395.641 + 465.462 = $1,808 Mil.
Gross Profit was 254.978 + 167.597 + 161.299 + 202.23 = $786 Mil.
Average Total Assets from the begining of last year (Nov12)
to the end of last year (Nov13) was
(807.43 + 857.215 + 895.946 + 866.263 + 872.315) / 5 = $859.8338 Mil.
Total Assets at the begining of last year (Nov12) was $807 Mil.
Long-Term Debt was $10 Mil.
Total Current Assets was $645 Mil.
Total Current Liabilities was $293 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.

Pier 1 Imports Inc's current net income (TTM) was 85. ==> 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.

Pier 1 Imports Inc's current cash flow from operations (TTM) was 52. ==> 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 (Nov13)
=84.665/872.315
=0.09705783

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Nov12)
=126.643/807.43
=0.15684703

Pier 1 Imports Inc's return on assets of this year was 0.09705783. Pier 1 Imports Inc's return on assets of last year was 0.15684703. ==> 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.

Pier 1 Imports Inc's current net income (TTM) was 85. Pier 1 Imports Inc's current cash flow from operations (TTM) was 52. ==> 52 <= 85 ==> 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: Nov14)=Long-Term Debt/Average Total Assets from Nov13 to Nov14
=205.173/885.6606
=0.23166098

Gearing (Last Year: Nov13)=Long-Term Debt/Average Total Assets from Nov12 to Nov13
=9.5/859.8338
=0.01104865

Pier 1 Imports Inc's gearing of this year was 0.23166098. Pier 1 Imports Inc's gearing of last year was 0.01104865. ==> 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: Nov14)=Total Current Assets/Total Current Liabilities
=666.761/322.005
=2.07065418

Current Ratio (Last Year: Nov13)=Total Current Assets/Total Current Liabilities
=645.456/293.108
=2.2021098

Pier 1 Imports Inc's current ratio of this year was 2.07065418. Pier 1 Imports Inc's current ratio of last year was 2.2021098. ==> Last year's current ratio is higher ==> Score 0.

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.

Pier 1 Imports Inc's number of shares in issue this year was 90.6. Pier 1 Imports Inc's number of shares in issue last year was 104.7. ==> 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
=749.7/1837.968
=0.40789611

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=786.104/1807.581
=0.43489282

Pier 1 Imports Inc's gross margin of this year was 0.40789611. Pier 1 Imports Inc's gross margin of last year was 0.43489282. ==> 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 (Nov13)
=1837.968/872.315
=2.10700034

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Nov12)
=1807.581/807.43
=2.23868447

Pier 1 Imports Inc's asset turnover of this year was 2.10700034. Pier 1 Imports Inc's asset turnover of last year was 2.23868447. ==> 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+0+0+0+1+0+0
=3

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

Pier 1 Imports Inc has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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.

Pier 1 Imports Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
Q1 1000011111
Q2 1000011111
Q3 0001011100
Q4 0011101001
Q5 1000011110
Q6 0100011010
Q7 1100000111
Q8 0000011110
Q9 0001011010
F-score 4213178674

Pier 1 Imports Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
Q1 1111111111
Q2 1111111111
Q3 1100000000
Q4 0001111110
Q5 1111111000
Q6 0110100000
Q7 1111111111
Q8 1111110000
Q9 1111000000
F-score 7877765443
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