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EchoStar Corp (NAS:SATS)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

EchoStar Corp has an F-score of 8. 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: 8
Current: 8

4
8

During the past 8 years, the highest Piotroski F-Score of EchoStar Corp was 8. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 30.805 + 12.055 + 4.506 + 4.32 = $52 Mil.
Cash Flow from Operations was 170.502 + 201.472 + 59.163 + 198.069 = $629 Mil.
Revenue was 879.828 + 826.023 + 808.087 + 848.908 = $3,363 Mil.
Gross Profit was 338.183 + 295.26 + 270.638 + 266.975 = $1,171 Mil.
Total Assets at the begining of this year (Jun13) was $6,506 Mil.
Total Assets was $7,172 Mil.
Long-Term Debt was $2,339 Mil.
Total Current Assets was $2,383 Mil.
Total Current Liabilities was $523 Mil.
Net Income was -9.759 + 3.458 + 26.224 + 22.554 = $42 Mil.

Revenue was 830.003 + 795.454 + 786.199 + 764.721 = $3,176 Mil.
Gross Profit was 275.636 + 262.305 + 256.396 + 247.145 = $1,041 Mil.
Total Assets at the begining of last year (Jun12) was $6,638 Mil.
Total Assets was $6,506 Mil.
Long-Term Debt was $2,380 Mil.
Total Current Assets was $2,283 Mil.
Total Current Liabilities was $509 Mil.

Profitability

Q1. 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 was 52. ==> Positive ==> Score 1.

Q2. 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 was 629. ==> Positive ==> Score 1.

Q3. 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/Total Assets at the beginning of this year (Jun13)
=51.686/6506.327
=0.00794396

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=42.477/6638.108
=0.00639896

EchoStar Corp's return on assets of this year was 0.00794396. EchoStar Corp's return on assets of last year was 0.00639896. ==> This year is higher. ==> Score 1.

Q4. 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 was 52. EchoStar Corp's current cash flow from operations was 629. ==> 629 > 52 ==> CFROA > ROA ==> Score 1.

Funding

Q5. 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)=Long-Term Debt/Total Assets
=2339.338/7172.138
=0.32617024

Gearing (Last Year)=Long-Term Debt/Total Assets
=2380.172/6506.327
=0.36582422

EchoStar Corp's gearing of this year was 0.32617024. EchoStar Corp's gearing of last year was 0.36582422. ==> This year is lower or equal to last year. ==> Score 1.

Q6. 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)=Total Current Assets/Total Current Liabilities
=2383.046/523.175
=4.55496918

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2283.335/509.349
=4.48284968

EchoStar Corp's current ratio of this year was 4.55496918. EchoStar Corp's current ratio of last year was 4.48284968. ==> This year's current ratio is higher. ==> Score 1.

Q7. 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 92.7. EchoStar Corp's number of shares in issue last year was 88.2. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. 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)=Gross Profit/Revenue
=1171.056/3362.846
=0.34823361

Gross Margin (Last Year)=Gross Profit/Revenue
=1041.482/3176.377
=0.32788362

EchoStar Corp's gross margin of this year was 0.34823361. EchoStar Corp's gross margin of last year was 0.32788362. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Jun13)
=3362.846/6506.327
=0.51685782

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=3176.377/6638.108
=0.47850638

EchoStar Corp's asset turnover of this year was 0.51685782. EchoStar Corp's asset turnover of last year was 0.47850638. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

EchoStar Corp has an F-score of 8. 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111
Q2 1111
Q3 0010
Q4 1111
Q5 1011
Q6 1001
Q7 1000
Q8 1110
Q9 1101
F-score 8566

EchoStar Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0001000001
Q4 1111111111
Q5 0001111111
Q6 0110111101
Q7 1000000000
Q8 1111100011
Q9 1000000111
F-score 6556655668
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