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Rouse Properties Inc (NYSE:RSE)
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

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

RSE' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 7
Current: 7

4
7

During the past 6 years, the highest Piotroski F-Score of Rouse Properties Inc was 7. 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 own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was -12.591 + 44.401 + -0.688 + -1.302 = $29.8 Mil.
Cash Flow from Operations was 19.334 + 18.487 + 22.99 + 20.743 = $81.6 Mil.
Revenue was 81.714 + 74.561 + 72.409 + 73.553 = $302.2 Mil.
Gross Profit was 53.801 + 46.827 + 46.128 + 48.458 = $195.2 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(2266.022 + 2270.4 + 2227.352 + 2277.092 + 2309.605) / 5 = $2270.0942 Mil.
Total Assets at the begining of this year (Sep14) was $2,266.0 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $188.5 Mil.
Total Current Liabilities was $1,761.1 Mil.
Net Income was -24.691 + -4.425 + -8.175 + -26.566 = $-63.9 Mil.

Revenue was 67.352 + 67.839 + 67.79 + 74.783 = $277.8 Mil.
Gross Profit was 44.021 + 41.734 + 41.958 + 46.463 = $174.2 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(1755.646 + 2019.51 + 2060.115 + 2161.937 + 2266.022) / 5 = $2052.646 Mil.
Total Assets at the begining of last year (Sep13) was $1,755.6 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $166.6 Mil.
Total Current Liabilities was $1,710.9 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.

Rouse Properties Inc's current net income (TTM) was 29.8. ==> 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.

Rouse Properties Inc's current cash flow from operations (TTM) was 81.6. ==> 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 (Sep14)
=29.82/2266.022
=0.01315963

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=-63.857/1755.646
=-0.03637237

Rouse Properties Inc's return on assets of this year was 0.01315963. Rouse Properties Inc's return on assets of last year was -0.03637237. ==> 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.

Rouse Properties Inc's current net income (TTM) was 29.8. Rouse Properties Inc's current cash flow from operations (TTM) was 81.6. ==> 81.6 > 29.8 ==> 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: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=0/2270.0942
=0

Gearing (Last Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=0/2052.646
=0

Rouse Properties Inc's gearing of this year was 0. Rouse Properties Inc's gearing of last year was 0. ==> This year is lower or equal to last year. ==> Score 1.

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: Sep15)=Total Current Assets/Total Current Liabilities
=188.506/1761.085
=0.10703969

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=166.606/1710.867
=0.09738104

Rouse Properties Inc's current ratio of this year was 0.10703969. Rouse Properties Inc's current ratio of last year was 0.09738104. ==> 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.

Rouse Properties Inc's number of shares in issue this year was 57.9. Rouse Properties Inc's number of shares in issue last year was 57.5. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=195.214/302.237
=0.64589709

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=174.176/277.764
=0.6270647

Rouse Properties Inc's gross margin of this year was 0.64589709. Rouse Properties Inc's gross margin of last year was 0.6270647. ==> This year's gross margin is higher. ==> Score 1.

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 (Sep14)
=302.237/2266.022
=0.13337779

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=277.764/1755.646
=0.15821185

Rouse Properties Inc's asset turnover of this year was 0.13337779. Rouse Properties Inc's asset turnover of last year was 0.15821185. ==> Last year's asset turnover is higher ==> Score 0.

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+1+1+0+1+0
=7

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

Rouse Properties Inc 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.

Rouse Properties Inc Annual Data

Dec12Dec13Dec14
Question 1 000
Question 2 111
Question 3 011
Question 4 111
Question 5 111
Question 6 101
Question 7 000
Question 8 101
Question 9 101
F-score 647

Rouse Properties Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Question 1 0000000011
Question 2 1111111111
Question 3 1111101111
Question 4 1111111111
Question 5 1111111111
Question 6 0000011001
Question 7 0000000000
Question 8 1100001111
Question 9 0001111100
F-score 5545557667
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