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Quanta Services Inc (NYSE:PWR)
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

Quanta Services Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

PWR' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 5

3
8

During the past 13 years, the highest Piotroski F-Score of Quanta Services Inc was 8. The lowest was 3. 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 own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 54.408 + 166.697 + 92.906 + 70.237 = $384 Mil.
Cash Flow from Operations was -60.533 + 201.492 + 83.192 + 117.776 = $342 Mil.
Revenue was 1762.574 + 1817.623 + 1645.132 + 1474.377 = $6,700 Mil.
Gross Profit was 272.071 + 302.843 + 273.053 + 241.284 = $1,089 Mil.
Total Assets at the begining of this year (Mar13) was $5,155 Mil.
Total Assets was $5,827 Mil.
Long-Term Debt was $5 Mil.
Total Current Assets was $2,214 Mil.
Total Current Liabilities was $982 Mil.
Net Income was 72.081 + 98.986 + 96.398 + 65.538 = $333 Mil.

Revenue was 1585.71 + 1673.342 + 1532.001 + 1386.162 = $6,177 Mil.
Gross Profit was 238.273 + 286.739 + 252 + 212.904 = $990 Mil.
Total Assets at the begining of last year (Mar12) was $4,755 Mil.
Total Assets was $5,155 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $2,186 Mil.
Total Current Liabilities was $830 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.

Quanta Services Inc's current net income was 384. ==> 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.

Quanta Services Inc's current cash flow from operations was 342. ==> 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 (Mar13)
=384.248/5154.818
=0.07454153

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=333.003/4755.334
=0.07002726

Quanta Services Inc's return on assets of this year was 0.07454153. Quanta Services Inc's return on assets of last year was 0.07002726. ==> 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.

Quanta Services Inc's current net income was 384. Quanta Services Inc's current cash flow from operations was 342. ==> 342 =< 384 ==> CFROA =< ROA ==> Score 0.

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
=4.556/5826.62
=0.00078193

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/5154.818
=0

Quanta Services Inc's gearing of this year was 0.00078193. Quanta Services Inc's gearing of last year was 0. ==> 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
=2214.457/982.475
=2.25395761

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2185.665/829.886
=2.63369306

Quanta Services Inc's current ratio of this year was 2.25395761. Quanta Services Inc's current ratio of last year was 2.63369306. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Quanta Services Inc's number of shares in issue this year was 219.1. Quanta Services Inc's number of shares in issue last year was 213.5. ==> 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
=1089.251/6699.706
=0.16258191

Gross Margin (Last Year)=Gross Profit/Revenue
=989.916/6177.215
=0.1602528

Quanta Services Inc's gross margin of this year was 0.16258191. Quanta Services Inc's gross margin of last year was 0.1602528. ==> 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 (Mar13)
=6699.706/5154.818
=1.29969787

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=6177.215/4755.334
=1.2990076

Quanta Services Inc's asset turnover of this year was 1.29969787. Quanta Services Inc's asset turnover of last year was 1.2990076. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Quanta Services Inc 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.

Quanta Services Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0111111111
Q2 1111111111
Q3 1101000011
Q4 1111111101
Q5 1111111000
Q6 0100110010
Q7 0000010010
Q8 0111110011
Q9 0111000111
F-score 4867674476

Quanta Services Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 0111111111
Q4 1000000110
Q5 0000001100
Q6 0000111000
Q7 1110000000
Q8 0111111111
Q9 1111111111
F-score 5665667765
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