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Portland General Electric Company (NYSE:POR)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

Portland General Electric Company has an F-score of 5 indicating the company's financial situation is typical for a stable company.

POR' s 10-Year Piotroski F-Score Range
Min: 4   Max: 7
Current: 5

4
7

During the past 13 years, the highest Piotroski F-Score of Portland General Electric Company was 7. The lowest was 4. 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 47 + 31 + -22 + 49 = $105 Mil.
Cash Flow from Operations was 85 + 180 + 114 + 165 = $544 Mil.
Revenue was 499 + 435 + 403 + 473 = $1,810 Mil.
Gross Profit was 224 + 191 + 183 + 230 = $828 Mil.
Total Assets at the begining of this year (Dec12) was $5,670 Mil.
Total Assets was $6,101 Mil.
Long-Term Debt was $1,916 Mil.
Total Current Assets was $591 Mil.
Total Current Liabilities was $393 Mil.
Net Income was 28 + 38 + 26 + 49 = $141 Mil.

Revenue was 463 + 450 + 413 + 479 = $1,805 Mil.
Gross Profit was 212 + 219 + 206 + 231 = $868 Mil.
Total Assets at the begining of last year (Dec11) was $5,733 Mil.
Total Assets was $5,670 Mil.
Long-Term Debt was $1,536 Mil.
Total Current Assets was $622 Mil.
Total Current Liabilities was $521 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.

Portland General Electric Company's current net income was 105. ==> 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.

Portland General Electric Company's current cash flow from operations was 544. ==> 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/Total Assets at the beginning of this year (Dec12)
=105/5670
=0.01851852

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=141/5733
=0.02459445

Portland General Electric Company's return on assets of this year was 0.01851852. Portland General Electric Company's return on assets of last year was 0.02459445. ==> 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.

Portland General Electric Company's current net income was 105. Portland General Electric Company's current cash flow from operations was 544. ==> 544 > 105 ==> CFROA > ROA ==> Score 1.

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
=1916/6101
=0.31404688

Gearing (Last Year)=Long-Term Debt/Total Assets
=1536/5670
=0.27089947

Portland General Electric Company's gearing of this year was 0.31404688. Portland General Electric Company's gearing of last year was 0.27089947. ==> Last year is lower ==> 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)=Total Current Assets/Total Current Liabilities
=591/393
=1.50381679

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=622/521
=1.19385797

Portland General Electric Company's current ratio of this year was 1.50381679. Portland General Electric Company's current ratio of last year was 1.19385797. ==> This year's current ratio is higher. ==> Score 1.

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.

Portland General Electric Company's number of shares in issue this year was 79.4. Portland General Electric Company's number of shares in issue last year was 76.1. ==> There is more number of shares in issue this year. ==> Score 0.

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
=828/1810
=0.45745856

Gross Margin (Last Year)=Gross Profit/Revenue
=868/1805
=0.48088643

Portland General Electric Company's gross margin of this year was 0.45745856. Portland General Electric Company's gross margin of last year was 0.48088643. ==> 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 (Dec12)
=1810/5670
=0.31922399

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=1805/5733
=0.31484389

Portland General Electric Company's asset turnover of this year was 0.31922399. Portland General Electric Company's asset turnover of last year was 0.31484389. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+1+0+0+1
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Portland General Electric Company has an F-score of 5 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.

Portland General Electric Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1011001100
Q4 1111111111
Q5 0100100110
Q6 1001011011
Q7 1010000000
Q8 1000001110
Q9 0001000001
F-score 7456446665

Portland General Electric Company Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1100001000
Q4 1111111111
Q5 1111111000
Q6 1000010111
Q7 0000000000
Q8 1101111000
Q9 0000100001
F-score 7645666445
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