Switch to:
Rite Aid Corp (NYSE:RAD)
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

Rite Aid Corp has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

RAD' s 10-Year Piotroski F-Score Range
Min: 1   Max: 8
Current: 7

1
8

During the past 13 years, the highest Piotroski F-Score of Rite Aid Corp was 8. The lowest was 1. 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 (Nov14) TTM:Last Year (Nov13) TTM:
Net Income was 55.377 + 41.446 + 127.849 + 104.846 = $330 Mil.
Cash Flow from Operations was 194.128 + 239.748 + 122.483 + 111.728 = $668 Mil.
Revenue was 6597.459 + 6465.531 + 6522.584 + 6692.333 = $26,278 Mil.
Gross Profit was 1885.716 + 1802.979 + 1894.579 + 1923.313 = $7,507 Mil.
Average Total Assets from the begining of this year (Nov13)
to the end of this year (Nov14) was
(7138.167 + 6944.871 + 6946.517 + 6959.344 + 7185.986) / 5 = $7034.977 Mil.
Total Assets at the begining of this year (Nov13) was $7,138 Mil.
Long-Term Debt was $5,739 Mil.
Total Current Assets was $4,360 Mil.
Total Current Liabilities was $2,465 Mil.
Net Income was 123.087 + 89.662 + 32.827 + 71.548 = $317 Mil.

Revenue was 6455.245 + 6293.057 + 6278.165 + 6357.732 = $25,384 Mil.
Gross Profit was 2047.763 + 1820.991 + 1816.361 + 1800.666 = $7,486 Mil.
Average Total Assets from the begining of last year (Nov12)
to the end of last year (Nov13) was
(7186.142 + 7078.719 + 6945.438 + 7168.99 + 7138.167) / 5 = $7103.4912 Mil.
Total Assets at the begining of last year (Nov12) was $7,186 Mil.
Long-Term Debt was $5,905 Mil.
Total Current Assets was $4,446 Mil.
Total Current Liabilities was $2,565 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.

Rite Aid Corp's current net income (TTM) was 330. ==> 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.

Rite Aid Corp's current cash flow from operations (TTM) was 668. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Nov13)
=329.518/7138.167
=0.04616283

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Nov12)
=317.124/7186.142
=0.04412994

Rite Aid Corp's return on assets of this year was 0.04616283. Rite Aid Corp's return on assets of last year was 0.04412994. ==> 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.

Rite Aid Corp's current net income (TTM) was 330. Rite Aid Corp's current cash flow from operations (TTM) was 668. ==> 668 > 330 ==> 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: Nov14)=Long-Term Debt/Average Total Assets from Nov13 to Nov14
=5739.074/7034.977
=0.81579144

Gearing (Last Year: Nov13)=Long-Term Debt/Average Total Assets from Nov12 to Nov13
=5904.673/7103.4912
=0.83123535

Rite Aid Corp's gearing of this year was 0.81579144. Rite Aid Corp's gearing of last year was 0.83123535. ==> 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: Nov14)=Total Current Assets/Total Current Liabilities
=4359.967/2464.674
=1.76898324

Current Ratio (Last Year: Nov13)=Total Current Assets/Total Current Liabilities
=4446.253/2565.084
=1.7333752

Rite Aid Corp's current ratio of this year was 1.76898324. Rite Aid Corp's current ratio of last year was 1.7333752. ==> 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.

Rite Aid Corp's number of shares in issue this year was 1020.3. Rite Aid Corp's number of shares in issue last year was 987.8. ==> There is larger 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: TTM)=Gross Profit/Revenue
=7506.587/26277.907
=0.28566153

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7485.781/25384.199
=0.29489924

Rite Aid Corp's gross margin of this year was 0.28566153. Rite Aid Corp's gross margin of last year was 0.29489924. ==> Last year's gross margin is higher ==> Score 0.

Q9. 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 (Nov13)
=26277.907/7138.167
=3.68132421

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Nov12)
=25384.199/7186.142
=3.53238205

Rite Aid Corp's asset turnover of this year was 3.68132421. Rite Aid Corp's asset turnover of last year was 3.53238205. ==> 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+1+1+1+0+0+1
=7

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

Rite Aid 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 own currency.

Rite Aid Corp Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
Q1 1110000011
Q2 1111101111
Q3 1100010111
Q4 1011111111
Q5 1100100011
Q6 0010110000
Q7 0010000000
Q8 1001000010
Q9 0101011101
F-score 6554443466

Rite Aid Corp Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
Q1 0011111111
Q2 1111111111
Q3 1111111001
Q4 1111111111
Q5 0100001111
Q6 0000110001
Q7 0000000000
Q8 1111110000
Q9 1101111101
F-score 5656776547
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)
Free 7-day Trial
FEEDBACK