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Sandstorm Gold Ltd (AMEX:SAND)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Sandstorm Gold Ltd has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

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

3
7

During the past 9 years, the highest Piotroski F-Score of Sandstorm Gold Ltd was 7. The lowest was 3. 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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was 0.825 + -13.451 + -5.47 + -24.959 = $-43.06 Mil.
Cash Flow from Operations was 8.119 + 9.479 + 8.234 + 4.988 = $30.82 Mil.
Revenue was 15.285 + 15.429 + 12.086 + 9.863 = $52.66 Mil.
Gross Profit was 2.468 + 1.291 + 0.709 + -0.683 = $3.79 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(431.07 + 425.154 + 415.944 + 408.17 + 496.873) / 5 = $435.4422 Mil.
Total Assets at the begining of this year (Dec14) was $431.07 Mil.
Long-Term Debt was $83.50 Mil.
Total Current Assets was $9.22 Mil.
Total Current Liabilities was $7.44 Mil.
Net Income was 3.792 + 3.039 + 2.076 + 2.608 = $11.52 Mil.

Revenue was 15.295 + 13.153 + 15.559 + 12.488 = $56.50 Mil.
Gross Profit was 4.945 + 3.308 + 3.57 + 2.376 = $14.20 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(379.703 + 400.299 + 456.05 + 445.368 + 431.07) / 5 = $422.498 Mil.
Total Assets at the begining of last year (Dec13) was $379.70 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $92.97 Mil.
Total Current Liabilities was $3.63 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.

Sandstorm Gold Ltd's current net income (TTM) was -43.06. ==> Negative ==> Score 0.

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.

Sandstorm Gold Ltd's current cash flow from operations (TTM) was 30.82. ==> 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 (Dec14)
=-43.055/431.07
=-0.09987937

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=11.515/379.703
=0.03032633

Sandstorm Gold Ltd's return on assets of this year was -0.09987937. Sandstorm Gold Ltd's return on assets of last year was 0.03032633. ==> 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.

Sandstorm Gold Ltd's current net income (TTM) was -43.06. Sandstorm Gold Ltd's current cash flow from operations (TTM) was 30.82. ==> 30.82 > -43.06 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=83.5/435.4422
=0.19175909

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=0/422.498
=0

Sandstorm Gold Ltd's gearing of this year was 0.19175909. Sandstorm Gold Ltd'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: Dec15)=Total Current Assets/Total Current Liabilities
=9.222/7.443
=1.23901653

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=92.97/3.631
=25.60451666

Sandstorm Gold Ltd's current ratio of this year was 1.23901653. Sandstorm Gold Ltd's current ratio of last year was 25.60451666. ==> 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.

Sandstorm Gold Ltd's number of shares in issue this year was 119.6. Sandstorm Gold Ltd's number of shares in issue last year was 121.4. ==> 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
=3.785/52.663
=0.07187209

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=14.199/56.495
=0.25133198

Sandstorm Gold Ltd's gross margin of this year was 0.07187209. Sandstorm Gold Ltd's gross margin of last year was 0.25133198. ==> 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 (Dec14)
=52.663/431.07
=0.12216809

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=56.495/379.703
=0.14878734

Sandstorm Gold Ltd's asset turnover of this year was 0.12216809. Sandstorm Gold Ltd's asset turnover of last year was 0.14878734. ==> 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
=0+1+0+1+0+0+1+0+0
=3

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

Sandstorm Gold Ltd has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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.

Sandstorm Gold Ltd Annual Data

Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 011010
Question 2 111111
Question 3 011010
Question 4 111111
Question 5 111110
Question 6 001100
Question 7 000001
Question 8 100000
Question 9 111000
F-score 567453

Sandstorm Gold Ltd Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 00001000
Question 2 11111111
Question 3 00111110
Question 4 11111111
Question 5 11111110
Question 6 11000000
Question 7 00000011
Question 8 00000000
Question 9 00000000
F-score 44445453
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