Switch to:
GuruFocus has detected 3 Warning Signs with Parexel International Corp $PRXL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Parexel International Corp has an F-score of 7. 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: 7

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 (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was 47.9 + 42.7 + 37.8 + 21.8 = $150 Mil.
Cash Flow from Operations was 44.4 + 131.2 + 65.4 + 46.1 = $287 Mil.
Revenue was 611.4 + 625.5 + 576.5 + 612.2 = $2,426 Mil.
Gross Profit was 189.3 + 189.8 + 169 + 183.5 = $732 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(1845.5 + 2092.6 + 2036.2 + 2081 + 2246.4) / 5 = $2060.34 Mil.
Total Assets at the begining of this year (Dec15) was $1,846 Mil.
Long-Term Debt was $757 Mil.
Total Current Assets was $1,274 Mil.
Total Current Liabilities was $801 Mil.
Net Income was 37.7 + 34.2 + 24.9 + 39.4 = $136 Mil.

Revenue was 576.4 + 605.2 + 585.2 + 604.2 = $2,371 Mil.
Gross Profit was 164 + 162.9 + 168.9 + 186 = $682 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(1769.228 + 1798.809 + 1865 + 1800.1 + 1845.5) / 5 = $1815.7274 Mil.
Total Assets at the begining of last year (Dec14) was $1,769 Mil.
Long-Term Debt was $458 Mil.
Total Current Assets was $1,056 Mil.
Total Current Liabilities was $729 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 150. ==> 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 287. ==> 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 (Dec15)
=150.2/1845.5
=0.08138716

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=136.2/1769.228
=0.07698273

Parexel International Corp's return on assets of this year was 0.08138716. Parexel International Corp's return on assets of last year was 0.07698273. ==> 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 150. Parexel International Corp's current cash flow from operations (TTM) was 287. ==> 287 > 150 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=756.9/2060.34
=0.36736655

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=457.9/1815.7274
=0.25218543

Parexel International Corp's gearing of this year was 0.36736655. Parexel International Corp's gearing of last year was 0.25218543. ==> Last year is lower than this year ==> Score 0.

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: Dec16)=Total Current Assets/Total Current Liabilities
=1274.1/801.3
=1.59004118

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=1055.6/728.8
=1.44840834

Parexel International Corp's current ratio of this year was 1.59004118. Parexel International Corp's current ratio of last year was 1.44840834. ==> 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 52.7. Parexel International Corp's number of shares in issue last year was 54. ==> 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
=731.6/2425.6
=0.30161609

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=681.8/2371
=0.28755799

Parexel International Corp's gross margin of this year was 0.30161609. Parexel International Corp's gross margin of last year was 0.28755799. ==> 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 (Dec15)
=2425.6/1845.5
=1.31433216

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=2371/1769.228
=1.34013253

Parexel International Corp's asset turnover of this year was 1.31433216. Parexel International Corp's asset turnover of last year was 1.34013253. ==> 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+1+1+0+1+1+1+0
=7

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

Parexel International Corp has an F-score of 7. 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

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 1111111111
Question 2 1111111111
Question 3 1111100111
Question 4 1111111111
Question 5 1100000010
Question 6 0011000111
Question 7 1111011111
Question 8 1110000111
Question 9 0000111110
F-score 7776555897
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK