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Regis Corporation (NYSE:RGS)
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

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

RGS' 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 Regis Corporation 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was -109.085 + -0.136 + 0.675 + 2.361 = $-106 Mil.
Cash Flow from Operations was 33.473 + 15.756 + -12.592 + 22.771 = $59 Mil.
Revenue was 468.367 + 468.583 + 502.251 + 504.937 = $1,944 Mil.
Gross Profit was 194.493 + 199.544 + 205.573 + 217.34 = $817 Mil.
Total Assets at the begining of this year (Dec12) was $1,541 Mil.
Total Assets was $1,434 Mil.
Long-Term Debt was $120 Mil.
Total Current Assets was $589 Mil.
Total Current Liabilities was $370 Mil.
Net Income was -12.266 + 38.424 + -63.634 + -1.369 = $-39 Mil.

Revenue was 506.165 + 505.36 + 528.842 + 535.901 = $2,076 Mil.
Gross Profit was 216.836 + 219.7 + 238.9 + 239.624 = $915 Mil.
Total Assets at the begining of last year (Dec11) was $1,697 Mil.
Total Assets was $1,541 Mil.
Long-Term Debt was $240 Mil.
Total Current Assets was $467 Mil.
Total Current Liabilities was $245 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.

Regis Corporation's current net income was -106. ==> Negative ==> Score 0.

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.

Regis Corporation's current cash flow from operations was 59. ==> 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 (Dec12)
=-106.185/1540.903
=-0.06891089

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=-38.845/1696.961
=-0.02289092

Regis Corporation's return on assets of this year was -0.06891089. Regis Corporation's return on assets of last year was -0.02289092. ==> 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.

Regis Corporation's current net income was -106. Regis Corporation's current cash flow from operations was 59. ==> 59 > -106 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=120.01/1434.066
=0.08368513

Gearing (Last Year)=Long-Term Debt/Total Assets
=240.033/1540.903
=0.15577424

Regis Corporation's gearing of this year was 0.08368513. Regis Corporation's gearing of last year was 0.15577424. ==> This year is lower. ==> 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
=588.528/369.586
=1.59239798

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=466.958/245.087
=1.90527445

Regis Corporation's current ratio of this year was 1.59239798. Regis Corporation's current ratio of last year was 1.90527445. ==> 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.

Regis Corporation's number of shares in issue this year was 56.4. Regis Corporation's number of shares in issue last year was 56.8. ==> There is the same number of shares in issue this year, or fewer. ==> 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
=816.95/1944.138
=0.42021194

Gross Margin (Last Year)=Gross Profit/Revenue
=915.06/2076.268
=0.44072345

Regis Corporation's gross margin of this year was 0.42021194. Regis Corporation's gross margin of last year was 0.44072345. ==> 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 (Dec12)
=1944.138/1540.903
=1.26168747

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=2076.268/1696.961
=1.22352134

Regis Corporation's asset turnover of this year was 1.26168747. Regis Corporation's asset turnover of last year was 1.22352134. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Regis Corporation 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.

Regis Corporation Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Q1 1111101001
Q2 1111111111
Q3 1010001001
Q4 1111111111
Q5 1011001101
Q6 1000011010
Q7 0001110101
Q8 1001001010
Q9 0000001011
F-score 7356448457

Regis Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 0000000100
Q2 1111111111
Q3 0000011110
Q4 1111111111
Q5 1110001111
Q6 0001111000
Q7 1000011111
Q8 0001000000
Q9 0001111111
F-score 4335467765
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