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EchoStar Corp (NAS:SATS)
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

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

SATS' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 7

4
9

During the past 9 years, the highest Piotroski F-Score of EchoStar Corp was 9. The lowest was 4. 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 (Mar15) TTM:Last Year (Mar14) TTM:
Net Income was 30.805 + 60.168 + 49.847 + 29.398 = $170 Mil.
Cash Flow from Operations was 170.502 + 290.46 + 177.697 + 221.562 = $860 Mil.
Revenue was 879.828 + 895.84 + 843.887 + 798.653 = $3,418 Mil.
Gross Profit was 338.183 + 343.383 + 340.836 + 330.19 = $1,353 Mil.
Average Total Assets from the begining of this year (Mar14)
to the end of this year (Mar15) was
(7238.592 + 7172.138 + 7312.681 + 7253.998 + 7316.631) / 5 = $7258.808 Mil.
Total Assets at the begining of this year (Mar14) was $7,239 Mil.
Long-Term Debt was $2,320 Mil.
Total Current Assets was $2,370 Mil.
Total Current Liabilities was $555 Mil.
Net Income was -9.759 + 4.32 + 4.506 + 12.055 = $11 Mil.

Revenue was 830.003 + 848.908 + 808.087 + 826.023 = $3,313 Mil.
Gross Profit was 275.636 + 266.975 + 270.638 + 295.26 = $1,109 Mil.
Average Total Assets from the begining of last year (Mar13)
to the end of last year (Mar14) was
(6549.952 + 6506.327 + 6664.459 + 6701.963 + 7238.592) / 5 = $6732.2586 Mil.
Total Assets at the begining of last year (Mar13) was $6,550 Mil.
Long-Term Debt was $2,345 Mil.
Total Current Assets was $2,449 Mil.
Total Current Liabilities was $634 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.

EchoStar Corp's current net income (TTM) was 170. ==> 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.

EchoStar Corp's current cash flow from operations (TTM) was 860. ==> 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 (Mar14)
=170.218/7238.592
=0.02351535

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=11.122/6549.952
=0.00169803

EchoStar Corp's return on assets of this year was 0.02351535. EchoStar Corp's return on assets of last year was 0.00169803. ==> 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.

EchoStar Corp's current net income (TTM) was 170. EchoStar Corp's current cash flow from operations (TTM) was 860. ==> 860 > 170 ==> 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: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=2320.078/7258.808
=0.31962245

Gearing (Last Year: Mar14)=Long-Term Debt/Average Total Assets from Mar13 to Mar14
=2345.199/6732.2586
=0.34835248

EchoStar Corp's gearing of this year was 0.31962245. EchoStar Corp's gearing of last year was 0.34835248. ==> 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: Mar15)=Total Current Assets/Total Current Liabilities
=2370.14/555.27
=4.26844598

Current Ratio (Last Year: Mar14)=Total Current Assets/Total Current Liabilities
=2449.236/634.482
=3.86021353

EchoStar Corp's current ratio of this year was 4.26844598. EchoStar Corp's current ratio of last year was 3.86021353. ==> 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.

EchoStar Corp's number of shares in issue this year was 93.4. EchoStar Corp's number of shares in issue last year was 92.3. ==> 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
=1352.592/3418.208
=0.39570208

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1108.509/3313.021
=0.3345916

EchoStar Corp's gross margin of this year was 0.39570208. EchoStar Corp's gross margin of last year was 0.3345916. ==> 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 (Mar14)
=3418.208/7238.592
=0.47222001

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=3313.021/6549.952
=0.50580844

EchoStar Corp's asset turnover of this year was 0.47222001. EchoStar Corp's asset turnover of last year was 0.50580844. ==> 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

EchoStar 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 own currency.

EchoStar Corp Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 111111
Question 2 111111
Question 3 100101
Question 4 011111
Question 5 010111
Question 6 110011
Question 7 100001
Question 8 111101
Question 9 011011
F-score 675669

EchoStar Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Question 1 1111111111
Question 2 1111111111
Question 3 1000001111
Question 4 1111111111
Question 5 1111111111
Question 6 0111101011
Question 7 0000000010
Question 8 1100011111
Question 9 0000111110
F-score 6655668797
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