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Phoenix Companies Inc (NYSE:PNX)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

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

Phoenix Companies Inc has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

PNX' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Dec12) TTM:Last Year (Dec11) TTM:
Net Income was -20.8 + -98.8 + -13.2 + -8.1 = $-141 Mil.
Cash Flow from Operations was -117.4 + -332.2 + -37.3 + -33.9 = $-521 Mil.
Revenue was 438.7 + 478.1 + 451.5 + 439.1 = $1,807 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Total Assets at the begining of this year (Dec11) was $21,488 Mil.
Total Assets was $21,630 Mil.
Long-Term Debt was $379 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Net Income was -19.6 + 8 + 15.2 + 3.6 = $7 Mil.

Revenue was 447 + 451.8 + 478.2 + 449.4 = $1,826 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Total Assets at the begining of last year (Dec10) was $21,082 Mil.
Total Assets was $21,488 Mil.
Long-Term Debt was $427 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 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.

Phoenix Companies Inc's current net income was -141. ==> 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.

Phoenix Companies Inc's current cash flow from operations was -521. ==> 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 (Dec11)
=-140.9/21488
=-0.00655715

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec10)
=7.2/21082.3
=0.00034152

Phoenix Companies Inc's return on assets of this year was -0.00655715. Phoenix Companies Inc's return on assets of last year was 0.00034152. ==> 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.

Phoenix Companies Inc's current net income was -141. Phoenix Companies Inc's current cash flow from operations was -521. ==> -521 =< -141 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=378.8/21629.8
=0.01751288

Gearing (Last Year)=Long-Term Debt/Total Assets
=426.9/21488
=0.0198669

Phoenix Companies Inc's gearing of this year was 0.01751288. Phoenix Companies Inc's gearing of last year was 0.0198669. ==> This year is lower. ==> Score 1.

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
=0/0
=

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=0/0
=

Phoenix Companies Inc's current ratio of this year was . Phoenix Companies Inc's current ratio of last year was . ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Phoenix Companies Inc's number of shares in issue this year was 5.7. Phoenix Companies Inc's number of shares in issue last year was 5.8. ==> There is the same number of shares in issue this year, or fewer. ==> 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
=0/1807.4
=0

Gross Margin (Last Year)=Gross Profit/Revenue
=0/1826.4
=0

Phoenix Companies Inc's gross margin of this year was 0. Phoenix Companies Inc's gross margin of last year was 0. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec11)
=1807.4/21488
=0.08411206

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec10)
=1826.4/21082.3
=0.08663191

Phoenix Companies Inc's asset turnover of this year was 0.08411206. Phoenix Companies Inc's asset turnover of last year was 0.08663191. ==> 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+1+0+1+0+0
=2

Good or high score = 8 or 9

Bad or low score = 0 or 1

Phoenix Companies Inc has an F-score of 2. 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.

Phoenix Companies Inc Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
Q1 111100000
Q2 111110000
Q3 110101100
Q4 011110000
Q5 001111011
Q6 000000000
Q7 000010111
Q8 000000000
Q9 001001110
F-score 345543332

Phoenix Companies Inc Quarterly Data

Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12
Q1 0000110000
Q2 0000000000
Q3 1111111000
Q4 0000000000
Q5 0001011011
Q6 0000000000
Q7 1100011111
Q8 0000000000
Q9 1101111000
F-score 1112344000
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