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Portland General Electric Co (NYSE:POR)
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

Portland General Electric Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

POR' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 5

2
8

During the past 13 years, the highest Piotroski F-Score of Portland General Electric Co was 8. The lowest was 2. 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 local exchange's currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was $172 Mil.
Cash Flow from Operations was $517 Mil.
Revenue was $1,898 Mil.
Gross Profit was $971 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was (7042 + 7210) / 2 = $7126 Mil.
Total Assets at the begining of this year (Dec14) was $7,042 Mil.
Long-Term Debt was $2,060 Mil.
Total Current Assets was $557 Mil.
Total Current Liabilities was $626 Mil.
Net Income was $175 Mil.

Revenue was $1,900 Mil.
Gross Profit was $930 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was (6101 + 7042) / 2 = $6571.5 Mil.
Total Assets at the begining of last year (Dec13) was $6,101 Mil.
Long-Term Debt was $2,126 Mil.
Total Current Assets was $699 Mil.
Total Current Liabilities was $873 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.

Portland General Electric Co's current net income (TTM) was 172. ==> 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.

Portland General Electric Co's current cash flow from operations (TTM) was 517. ==> 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.

Portland General Electric Co's return on assets of this year was 0.02442488. Portland General Electric Co's return on assets of last year was 0.02868382. ==> 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.

Portland General Electric Co's current net income (TTM) was 172. Portland General Electric Co's current cash flow from operations (TTM) was 517. ==> 517 > 172 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=2060/7126
=0.28908223

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=2126/6571.5
=0.32351822

Portland General Electric Co's gearing of this year was 0.28908223. Portland General Electric Co's gearing of last year was 0.32351822. ==> 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: Dec15)=Total Current Assets/Total Current Liabilities
=557/626
=0.88977636

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=699/873
=0.80068729

Portland General Electric Co's current ratio of this year was 0.88977636. Portland General Electric Co's current ratio of last year was 0.80068729. ==> 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.

Portland General Electric Co's number of shares in issue this year was 84.3. Portland General Electric Co's number of shares in issue last year was 80.5. ==> 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
=971/1898
=0.51159115

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=930/1900
=0.48947368

Portland General Electric Co's gross margin of this year was 0.51159115. Portland General Electric Co's gross margin of last year was 0.48947368. ==> 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 (Dec14)
=1898/7042
=0.2695257

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=1900/6101
=0.31142436

Portland General Electric Co's asset turnover of this year was 0.2695257. Portland General Electric Co's asset turnover of last year was 0.31142436. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

Portland General Electric Co 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 local exchange's currency.

Portland General Electric Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1100110010
Question 4 1111111111
Question 5 0010011011
Question 6 0101101101
Question 7 1000000000
Question 8 0000111011
Question 9 0100000100
F-score 5644666566
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