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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 (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was 137.915 + 410.287 + 346.876 + 141.918 = $1,037 Mil.
Cash Flow from Operations was 144.921 + 253.744 + 81.532 + 274.357 = $755 Mil.
Revenue was 415.151 + 450.865 + 462.847 + 510.404 = $1,839 Mil.
Gross Profit was 290.385 + 320.441 + 315.552 + 364.69 = $1,291 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(24131.562 + 24072.103 + 25818.223 + 25460.821 + 31602.397) / 5 = $26217.0212 Mil.
Total Assets at the begining of this year (Jun14) was $24,132 Mil.
Long-Term Debt was $12,121 Mil.
Total Current Assets was $351 Mil.
Total Current Liabilities was $537 Mil.
Net Income was -5.399 + 61.192 + 6.801 + 81.18 = $144 Mil.

Revenue was 430.185 + 416.746 + 434.682 + 460.089 = $1,742 Mil.
Gross Profit was 299.25 + 295.739 + 300.002 + 322.676 = $1,218 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(24037.568 + 24789.543 + 24572.307 + 24655.148 + 24131.562) / 5 = $24437.2256 Mil.
Total Assets at the begining of last year (Jun13) was $24,038 Mil.
Long-Term Debt was $8,529 Mil.
Total Current Assets was $391 Mil.
Total Current Liabilities was $616 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 1,037. ==> 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 755. ==> 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 (Jun14)
=1036.996/24131.562
=0.0429726

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=143.774/24037.568
=0.00598122

Prologis Inc's return on assets of this year was 0.0429726. Prologis Inc's return on assets of last year was 0.00598122. ==> 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 1,037. Prologis Inc's current cash flow from operations (TTM) was 755. ==> 755 <= 1,037 ==> 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: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=12121.305/26217.0212
=0.46234486

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=8529.453/24437.2256
=0.34903524

Prologis Inc's gearing of this year was 0.46234486. Prologis Inc's gearing of last year was 0.34903524. ==> 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: Jun15)=Total Current Assets/Total Current Liabilities
=351.025/537.432
=0.6531524

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=391.388/615.849
=0.63552592

Prologis Inc's current ratio of this year was 0.6531524. Prologis Inc's current ratio of last year was 0.63552592. ==> This year's current ratio is higher. ==> Score 1.

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 530.6. Prologis Inc's number of shares in issue last year was 516.6. ==> 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
=1291.068/1839.267
=0.70194703

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1217.667/1741.702
=0.69912476

Prologis Inc's gross margin of this year was 0.70194703. Prologis Inc's gross margin of last year was 0.69912476. ==> 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 (Jun14)
=1839.267/24131.562
=0.07621832

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=1741.702/24037.568
=0.0724575

Prologis Inc's asset turnover of this year was 0.07621832. Prologis Inc's asset turnover of last year was 0.0724575. ==> 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+0+1+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 1110000011
Question 2 1111111111
Question 3 1010101111
Question 4 1101111111
Question 5 1000101110
Question 6 0010001110
Question 7 0001000000
Question 8 0010011101
Question 9 0100010001
F-score 5453446666

Prologis Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 1111111111
Question 2 1111111111
Question 3 0001111111
Question 4 1111111100
Question 5 1111000010
Question 6 1001001001
Question 7 0000000000
Question 8 0000011111
Question 9 0100111111
F-score 5546567666
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