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

Good Sign:

Piotroski F-Score of 9 is 9, indicating very healthy situation.

The zones of discrimination were as such:

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

Parexel International Corp has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

PRXL' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Max: 9
Current: 9

1
9

During the past 13 years, the highest Piotroski F-Score of Parexel International Corp was 9. The lowest was 1. 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 (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 39.4 + 47.9 + 42.7 + 37.8 = $168 Mil.
Cash Flow from Operations was 31.5 + 44.4 + 131.2 + 65.4 = $273 Mil.
Revenue was 604.2 + 611.4 + 625.5 + 576.5 = $2,418 Mil.
Gross Profit was 186 + 189.3 + 189.8 + 169 = $734 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(1800.1 + 1845.5 + 2092.6 + 2036.2 + 2081) / 5 = $1971.08 Mil.
Total Assets at the begining of this year (Sep15) was $1,800 Mil.
Long-Term Debt was $502 Mil.
Total Current Assets was $1,229 Mil.
Total Current Liabilities was $746 Mil.
Net Income was 38.8 + 37.7 + 34.2 + 24.9 = $136 Mil.

Revenue was 575 + 576.4 + 605.2 + 585.2 = $2,342 Mil.
Gross Profit was 172 + 164 + 162.9 + 168.9 = $668 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(1818.601 + 1769.228 + 1798.809 + 1865 + 1800.1) / 5 = $1810.3476 Mil.
Total Assets at the begining of last year (Sep14) was $1,819 Mil.
Long-Term Debt was $470 Mil.
Total Current Assets was $1,005 Mil.
Total Current Liabilities was $704 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.

Parexel International Corp's current net income (TTM) was 168. ==> 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.

Parexel International Corp's current cash flow from operations (TTM) was 273. ==> 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 (Sep15)
=167.8/1800.1
=0.09321704

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=135.6/1818.601
=0.07456281

Parexel International Corp's return on assets of this year was 0.09321704. Parexel International Corp's return on assets of last year was 0.07456281. ==> 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.

Parexel International Corp's current net income (TTM) was 168. Parexel International Corp's current cash flow from operations (TTM) was 273. ==> 273 > 168 ==> 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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=502.1/1971.08
=0.25473345

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=470.2/1810.3476
=0.25972913

Parexel International Corp's gearing of this year was 0.25473345. Parexel International Corp's gearing of last year was 0.25972913. ==> 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: Sep16)=Total Current Assets/Total Current Liabilities
=1229.4/746.3
=1.64732681

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=1005.2/703.5
=1.42885572

Parexel International Corp's current ratio of this year was 1.64732681. Parexel International Corp's current ratio of last year was 1.42885572. ==> 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.

Parexel International Corp's number of shares in issue this year was 53.7. Parexel International Corp's number of shares in issue last year was 55.9. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=734.1/2417.6
=0.30364825

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=667.8/2341.8
=0.28516526

Parexel International Corp's gross margin of this year was 0.30364825. Parexel International Corp's gross margin of last year was 0.28516526. ==> 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 (Sep15)
=2417.6/1800.1
=1.3430365

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=2341.8/1818.601
=1.28769312

Parexel International Corp's asset turnover of this year was 1.3430365. Parexel International Corp's asset turnover of last year was 1.28769312. ==> 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+1+1+1+1+1+1
=9

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

Parexel International Corp has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.


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.

Parexel International Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Question 1 1111111111
Question 2 1111011111
Question 3 1100111111
Question 4 1011011111
Question 5 1001010100
Question 6 0010100011
Question 7 0000001111
Question 8 1111001101
Question 9 1100101001
F-score 7555457768

Parexel International Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1111111111
Question 2 1111111111
Question 3 1111110011
Question 4 1111111111
Question 5 1110000001
Question 6 0001100011
Question 7 1111101111
Question 8 1111000011
Question 9 0000011111
F-score 7777655589
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