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Parexel International Corp (NAS:PRXL)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Parexel International Corp has an F-score of 7 indicating the company's financial situation is typical for a stable company.

PRXL' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 7

2
8

During the past 13 years, the highest Piotroski F-Score of Parexel International Corp was 8. The lowest was 2. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 40.072 + 34.739 + 28.329 + 25.954 = $129 Mil.
Cash Flow from Operations was 98.502 + 76.362 + 149.474 + -37.137 = $287 Mil.
Revenue was 585.124 + 577.918 + 574.236 + 529.064 = $2,266 Mil.
Gross Profit was 182.267 + 169.226 + 162.638 + 146.051 = $660 Mil.
Total Assets at the begining of this year (Jun13) was $1,780 Mil.
Total Assets was $1,834 Mil.
Long-Term Debt was $334 Mil.
Total Current Assets was $1,122 Mil.
Total Current Liabilities was $771 Mil.
Net Income was 30.041 + 29.524 + 21.343 + 15.064 = $96 Mil.

Revenue was 526.858 + 523.451 + 483.137 + 462.52 = $1,996 Mil.
Gross Profit was 148.238 + 142.576 + 120.743 + 115.349 = $527 Mil.
Total Assets at the begining of last year (Jun12) was $1,535 Mil.
Total Assets was $1,780 Mil.
Long-Term Debt was $424 Mil.
Total Current Assets was $1,077 Mil.
Total Current Liabilities was $674 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.

Parexel International Corp's current net income was 129. ==> 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.

Parexel International Corp's current cash flow from operations was 287. ==> 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 (Jun13)
=129.094/1779.624
=0.07254004

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=95.972/1535.372
=0.06250733

Parexel International Corp's return on assets of this year was 0.07254004. Parexel International Corp's return on assets of last year was 0.06250733. ==> This year is higher. ==> Score 1.

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.

Parexel International Corp's current net income was 129. Parexel International Corp's current cash flow from operations was 287. ==> 287 > 129 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=334.443/1834
=0.18235714

Gearing (Last Year)=Long-Term Debt/Total Assets
=424.074/1779.624
=0.23829416

Parexel International Corp's gearing of this year was 0.18235714. Parexel International Corp's gearing of last year was 0.23829416. ==> This year is lower or equal to last year. ==> 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
=1122.132/771.232
=1.45498631

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1077.457/674.228
=1.5980603

Parexel International Corp's current ratio of this year was 1.45498631. Parexel International Corp's current ratio of last year was 1.5980603. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Parexel International Corp's number of shares in issue this year was 57.5. Parexel International Corp's number of shares in issue last year was 57.8. ==> There is smaller number of shares in issue this year, or the same. ==> 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
=660.182/2266.342
=0.29129849

Gross Margin (Last Year)=Gross Profit/Revenue
=526.906/1995.966
=0.26398546

Parexel International Corp's gross margin of this year was 0.29129849. Parexel International Corp's gross margin of last year was 0.26398546. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun13)
=2266.342/1779.624
=1.27349485

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=1995.966/1535.372
=1.29998854

Parexel International Corp's asset turnover of this year was 1.27349485. Parexel International Corp's asset turnover of last year was 1.29998854. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+1+1+0
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Parexel International Corp has an F-score of 7 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.

Parexel International Corp Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Q1 1011111111
Q2 1111111011
Q3 1011100111
Q4 1111011011
Q5 1011001010
Q6 1000010100
Q7 0100000001
Q8 1001111001
Q9 0011100101
F-score 7367555457

Parexel International Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0111111111
Q4 1111111111
Q5 0110000011
Q6 1010101100
Q7 0001111111
Q8 0000011111
Q9 0011111110
F-score 4576778887
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