Switch to:
GuruFocus has detected 2 Warning Signs with Regis Corp $RGS.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Regis Corp (NYSE:RGS)
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

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

RGS' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of Regis Corp 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 local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was -2.084 + 5.562 + 3.281 + -2.219 = $5 Mil.
Cash Flow from Operations was 26.311 + 16.14 + 12.33 + 15.275 = $70 Mil.
Revenue was 442.565 + 447.707 + 431.042 + 424.043 = $1,745 Mil.
Gross Profit was 182.519 + 188.084 + 179.8 + 169.202 = $720 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(1054.832 + 1034.402 + 1036.761 + 1025.913 + 1030.227) / 5 = $1036.427 Mil.
Total Assets at the begining of this year (Dec15) was $1,055 Mil.
Long-Term Debt was $120 Mil.
Total Current Assets was $371 Mil.
Total Current Liabilities was $187 Mil.
Net Income was -4.763 + -2.573 + -0.808 + -13.986 = $-22 Mil.

Revenue was 453.96 + 462.889 + 450.13 + 450.467 = $1,817 Mil.
Gross Profit was 192.013 + 198.274 + 189.326 + 183.411 = $763 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(1190.436 + 1175.323 + 1162.015 + 1120.373 + 1054.832) / 5 = $1140.5958 Mil.
Total Assets at the begining of last year (Dec14) was $1,190 Mil.
Long-Term Debt was $120 Mil.
Total Current Assets was $363 Mil.
Total Current Liabilities was $205 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.

Regis Corp's current net income (TTM) was 5. ==> 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.

Regis Corp's current cash flow from operations (TTM) was 70. ==> 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)
=4.54/1054.832
=0.004304

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=-22.13/1190.436
=-0.01858983

Regis Corp's return on assets of this year was 0.004304. Regis Corp's return on assets of last year was -0.01858983. ==> 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.

Regis Corp's current net income (TTM) was 5. Regis Corp's current cash flow from operations (TTM) was 70. ==> 70 > 5 ==> 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
=120.103/1036.427
=0.11588177

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=120.06/1140.5958
=0.10526078

Regis Corp's gearing of this year was 0.11588177. Regis Corp's gearing of last year was 0.10526078. ==> 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
=370.863/186.973
=1.98351099

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=363.289/204.861
=1.77334388

Regis Corp's current ratio of this year was 1.98351099. Regis Corp's current ratio of last year was 1.77334388. ==> 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.

Regis Corp's number of shares in issue this year was 46.3. Regis Corp's number of shares in issue last year was 48.1. ==> 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
=719.605/1745.357
=0.41229674

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=763.024/1817.446
=0.41983311

Regis Corp's gross margin of this year was 0.41229674. Regis Corp's gross margin of last year was 0.41983311. ==> Last year's gross margin is higher ==> Score 0.

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)
=1745.357/1054.832
=1.65463031

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=1817.446/1190.436
=1.52670618

Regis Corp's asset turnover of this year was 1.65463031. Regis Corp's asset turnover of last year was 1.52670618. ==> This year's asset turnover is higher. ==> Score 1.

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+0+1
=7

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

Regis 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.

Regis Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Question 1 1101001000
Question 2 1111111111
Question 3 0001001011
Question 4 1111111111
Question 5 1001101000
Question 6 0011010110
Question 7 1110101111
Question 8 1001010000
Question 9 0001011101
F-score 6448457555

Regis Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 0000000001
Question 2 1111111111
Question 3 0111111111
Question 4 1111111111
Question 5 0000000000
Question 6 1111000011
Question 7 1111111111
Question 8 0010100000
Question 9 1110111111
F-score 5675655567
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