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Prologis Inc (NYSE:PLD)
Piotroski F-Score
6 (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

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

PLD' 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 Prologis 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 (Mar15) TTM:Last Year (Mar14) TTM:
Net Income was 81.18 + 137.915 + 410.287 + 346.876 = $976 Mil.
Cash Flow from Operations was 233.623 + 144.921 + 253.744 + 81.532 = $714 Mil.
Revenue was 460.089 + 415.151 + 450.865 + 462.847 = $1,789 Mil.
Gross Profit was 322.676 + 290.385 + 320.441 + 315.552 = $1,249 Mil.
Average Total Assets from the begining of this year (Mar14)
to the end of this year (Mar15) was
(24655.148 + 24131.562 + 24072.103 + 25818.223 + 25460.821) / 5 = $24827.5714 Mil.
Total Assets at the begining of this year (Mar14) was $24,655 Mil.
Long-Term Debt was $8,641 Mil.
Total Current Assets was $192 Mil.
Total Current Liabilities was $460 Mil.
Net Income was 2.299 + -5.399 + 61.192 + 6.801 = $65 Mil.

Revenue was 419.474 + 430.185 + 416.746 + 434.682 = $1,701 Mil.
Gross Profit was 281.887 + 299.25 + 295.739 + 300.002 = $1,177 Mil.
Average Total Assets from the begining of last year (Mar13)
to the end of last year (Mar14) was
(24075.299 + 24037.568 + 24789.543 + 24572.307 + 24655.148) / 5 = $24425.973 Mil.
Total Assets at the begining of last year (Mar13) was $24,075 Mil.
Long-Term Debt was $8,871 Mil.
Total Current Assets was $314 Mil.
Total Current Liabilities was $573 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.

Prologis Inc's current net income (TTM) was 976. ==> Positive ==> Score 1.

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.

Prologis Inc's current cash flow from operations (TTM) was 714. ==> 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 (Mar14)
=976.258/24655.148
=0.03959652

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=64.893/24075.299
=0.00269542

Prologis Inc's return on assets of this year was 0.03959652. Prologis Inc's return on assets of last year was 0.00269542. ==> This year is higher. ==> Score 1.

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.

Prologis Inc's current net income (TTM) was 976. Prologis Inc's current cash flow from operations (TTM) was 714. ==> 714 <= 976 ==> CFROA <= ROA ==> Score 0.

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: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=8641.421/24827.5714
=0.34805744

Gearing (Last Year: Mar14)=Long-Term Debt/Average Total Assets from Mar13 to Mar14
=8870.635/24425.973
=0.36316404

Prologis Inc's gearing of this year was 0.34805744. Prologis Inc's gearing of last year was 0.36316404. ==> This year is lower or equal to last year. ==> Score 1.

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: Mar15)=Total Current Assets/Total Current Liabilities
=192.013/459.845
=0.41756026

Current Ratio (Last Year: Mar14)=Total Current Assets/Total Current Liabilities
=313.516/572.754
=0.54738334

Prologis Inc's current ratio of this year was 0.41756026. Prologis Inc's current ratio of last year was 0.54738334. ==> 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.

Prologis Inc's number of shares in issue this year was 529. Prologis Inc's number of shares in issue last year was 504.4. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=1249.054/1788.952
=0.69820431

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1176.878/1701.087
=0.69183881

Prologis Inc's gross margin of this year was 0.69820431. Prologis Inc's gross margin of last year was 0.69183881. ==> 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 (Mar14)
=1788.952/24655.148
=0.07255896

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=1701.087/24075.299
=0.07065694

Prologis Inc's asset turnover of this year was 0.07255896. Prologis Inc's asset turnover of last year was 0.07065694. ==> 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
=1+1+1+0+1+0+0+1+1
=6

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

Prologis 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.

Prologis Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1110010011
Question 2 1111111111
Question 3 1010110111
Question 4 1101111111
Question 5 1010100110
Question 6 0010010110
Question 7 0001000000
Question 8 1001011101
Question 9 0100011001
F-score 6454474666

Prologis Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Question 1 0111111111
Question 2 1111111111
Question 3 1000111111
Question 4 1111111110
Question 5 1111100001
Question 6 1100100100
Question 7 0000000000
Question 8 1000001111
Question 9 0000011111
F-score 6544656766
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