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Power-One, Inc. (NAS:PWER)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

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

Power-One, Inc. has an F-score of 7 indicating the company's financial situation is typical for a stable company.

PWER' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Mar13) TTM:Last Year (Mar12) TTM:
Net Income was -7.161 + -17.152 + 21.123 + 46.712 = $44 Mil.
Cash Flow from Operations was 38.116 + -19.88 + 32.495 + 56.068 = $107 Mil.
Revenue was 204.607 + 191.658 + 283.649 + 321.522 = $1,001 Mil.
Gross Profit was 38.088 + 25.693 + 81.947 + 97.501 = $243 Mil.
Total Assets at the begining of this year (Mar12) was $736 Mil.
Total Assets was $795 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $665 Mil.
Total Current Liabilities was $220 Mil.
Net Income was 4.979 + 32.36 + 41.437 + 31.685 = $110 Mil.

Revenue was 225.749 + 266.833 + 245.031 + 260.304 = $998 Mil.
Gross Profit was 54.984 + 72.26 + 68.808 + 87.378 = $283 Mil.
Total Assets at the begining of last year (Mar11) was $785 Mil.
Total Assets was $736 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $612 Mil.
Total Current Liabilities was $215 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.

Power-One, Inc.'s current net income was 44. ==> 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.

Power-One, Inc.'s current cash flow from operations was 107. ==> 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 (Mar12)
=43.522/735.546
=0.05916965

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar11)
=110.461/784.702
=0.14076809

Power-One, Inc.'s return on assets of this year was 0.05916965. Power-One, Inc.'s return on assets of last year was 0.14076809. ==> 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.

Power-One, Inc.'s current net income was 44. Power-One, Inc.'s current cash flow from operations was 107. ==> 107 > 44 ==> 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
=0/795.104
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/735.546
=0

Power-One, Inc.'s gearing of this year was 0. Power-One, Inc.'s gearing of last year was 0. ==> 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
=664.924/220.244
=3.01903344

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=612.184/215.284
=2.84361123

Power-One, Inc.'s current ratio of this year was 3.01903344. Power-One, Inc.'s current ratio of last year was 2.84361123. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Power-One, Inc.'s number of shares in issue this year was 122.1. Power-One, Inc.'s number of shares in issue last year was 156.2. ==> 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
=243.229/1001.436
=0.24288022

Gross Margin (Last Year)=Gross Profit/Revenue
=283.43/997.917
=0.28402162

Power-One, Inc.'s gross margin of this year was 0.24288022. Power-One, Inc.'s gross margin of last year was 0.28402162. ==> 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 (Mar12)
=1001.436/735.546
=1.36148657

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar11)
=997.917/784.702
=1.27171461

Power-One, Inc.'s asset turnover of this year was 1.36148657. Power-One, Inc.'s asset turnover of last year was 1.27171461. ==> 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+1+1+1+0+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Power-One, Inc. 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.

Power-One, Inc. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
Q1 0000000111
Q2 0000101111
Q3 1001010100
Q4 1110101101
Q5 1110000111
Q6 1000011011
Q7 0000000010
Q8 1000011100
Q9 1101010101
F-score 6322244756

Power-One, Inc. Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
Q1 1111111111
Q2 1111111111
Q3 1110000000
Q4 1100001111
Q5 1111111111
Q6 0011110111
Q7 0011100001
Q8 1110000000
Q9 1110000011
F-score 7785544556
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