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RPX Corp (NAS:RPXC)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

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

RPXC' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 8
Current: 5

4
8

During the past 7 years, the highest Piotroski F-Score of RPX Corp was 8. The lowest was 4. 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 local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 5.527 + 4.237 + 4.15 + 8.115 = $22.0 Mil.
Cash Flow from Operations was 34.691 + 55.129 + 34.102 + 30.568 = $154.5 Mil.
Revenue was 72.831 + 79.735 + 83.109 + 88.461 = $324.1 Mil.
Gross Profit was 33.356 + 32.069 + 34.039 + 37.631 = $137.1 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(669.228 + 658.561 + 769.776 + 737.101 + 713.456) / 5 = $709.6244 Mil.
Total Assets at the begining of this year (Sep15) was $669.2 Mil.
Long-Term Debt was $89.9 Mil.
Total Current Assets was $243.2 Mil.
Total Current Liabilities was $120.5 Mil.
Net Income was 9.249 + 18.031 + 8.03 + 7.834 = $43.1 Mil.

Revenue was 67.747 + 83.287 + 67.551 + 68.212 = $286.8 Mil.
Gross Profit was 34.218 + 48.528 + 30.566 + 30.573 = $143.9 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(624.96 + 642.064 + 690.967 + 686.171 + 669.228) / 5 = $662.678 Mil.
Total Assets at the begining of last year (Sep14) was $625.0 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $393.0 Mil.
Total Current Liabilities was $133.8 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.

RPX Corp's current net income (TTM) was 22.0. ==> 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.

RPX Corp's current cash flow from operations (TTM) was 154.5. ==> 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 (Sep15)
=22.029/669.228
=0.03291703

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=43.144/624.96
=0.06903482

RPX Corp's return on assets of this year was 0.03291703. RPX Corp's return on assets of last year was 0.06903482. ==> Last year is higher ==> Score 0.

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.

RPX Corp's current net income (TTM) was 22.0. RPX Corp's current cash flow from operations (TTM) was 154.5. ==> 154.5 > 22.0 ==> 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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=89.885/709.6244
=0.1266656

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=0/662.678
=0

RPX Corp's gearing of this year was 0.1266656. RPX Corp's gearing of last year was 0. ==> 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: Sep16)=Total Current Assets/Total Current Liabilities
=243.193/120.498
=2.01823267

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=392.964/133.781
=2.93736779

RPX Corp's current ratio of this year was 2.01823267. RPX Corp's current ratio of last year was 2.93736779. ==> Last year's current ratio is higher ==> Score 0.

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.

RPX Corp's number of shares in issue this year was 50.2. RPX Corp's number of shares in issue last year was 55.7. ==> 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
=137.095/324.136
=0.42295518

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=143.885/286.797
=0.50169632

RPX Corp's gross margin of this year was 0.42295518. RPX Corp's gross margin of last year was 0.50169632. ==> 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 (Sep15)
=324.136/669.228
=0.48434315

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=286.797/624.96
=0.45890457

RPX Corp's asset turnover of this year was 0.48434315. RPX Corp's asset turnover of last year was 0.45890457. ==> 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+0+1+0+0+1+0+1
=5

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

RPX Corp 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 local exchange's currency.

RPX Corp Annual Data

Dec12Dec13Dec14Dec15
Question 1 1111
Question 2 1111
Question 3 0000
Question 4 1111
Question 5 1111
Question 6 1001
Question 7 0000
Question 8 1000
Question 9 0101
F-score 6546

RPX Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1111111111
Question 2 1111111111
Question 3 0001110000
Question 4 1111111111
Question 5 1111111000
Question 6 0001111000
Question 7 0000000111
Question 8 0001100000
Question 9 0001111001
F-score 4448876445
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