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EchoStar Corp (NAS:SATS)
Piotroski F-Score
6 (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

EchoStar Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

SATS' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 8
Current: 6

4
8

During the past 11 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 local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was 49.155 + 55.786 + 36.801 + 38.188 = $180 Mil.
Cash Flow from Operations was 192.849 + 162.785 + 219.075 + 228.634 = $803 Mil.
Revenue was 816.359 + 757.629 + 742.349 + 740.393 = $3,057 Mil.
Gross Profit was 332.334 + 327.266 + 327.742 + 333.782 = $1,321 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(7209.486 + 7336.235 + 7361.393 + 8977.337 + 9008.859) / 5 = $7978.662 Mil.
Total Assets at the begining of this year (Dec15) was $7,209 Mil.
Long-Term Debt was $3,623 Mil.
Total Current Assets was $3,723 Mil.
Total Current Liabilities was $531 Mil.
Net Income was 29.398 + 31.75 + 28.835 + 63.374 = $153 Mil.

Revenue was 798.653 + 793.595 + 760.879 + 790.587 = $3,144 Mil.
Gross Profit was 330.19 + 337.207 + 333.204 + 338.393 = $1,339 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(7253.998 + 7316.631 + 7233.133 + 7289.143 + 7209.486) / 5 = $7260.4782 Mil.
Total Assets at the begining of last year (Dec14) was $7,254 Mil.
Long-Term Debt was $2,157 Mil.
Total Current Assets was $2,134 Mil.
Total Current Liabilities was $527 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 180. ==> 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 803. ==> 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 (Dec15)
=179.93/7209.486
=0.0249574

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=153.357/7253.998
=0.02114103

EchoStar Corp's return on assets of this year was 0.0249574. EchoStar Corp's return on assets of last year was 0.02114103. ==> 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 180. EchoStar Corp's current cash flow from operations (TTM) was 803. ==> 803 > 180 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=3622.879/7978.662
=0.454071

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=2156.667/7260.4782
=0.297042

EchoStar Corp's gearing of this year was 0.454071. EchoStar Corp's gearing of last year was 0.297042. ==> 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: Dec16)=Total Current Assets/Total Current Liabilities
=3723.287/531.438
=7.00606091

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=2133.659/526.831
=4.04998757

EchoStar Corp's current ratio of this year was 7.00606091. EchoStar Corp's current ratio of last year was 4.04998757. ==> 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 94.4. EchoStar Corp's number of shares in issue last year was 93.5. ==> 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
=1321.124/3056.73
=0.43220173

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1338.994/3143.714
=0.42592742

EchoStar Corp's gross margin of this year was 0.43220173. EchoStar Corp's gross margin of last year was 0.42592742. ==> 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 (Dec15)
=3056.73/7209.486
=0.42398723

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=3143.714/7253.998
=0.43337674

EchoStar Corp's asset turnover of this year was 0.42398723. EchoStar Corp's asset turnover of last year was 0.43337674. ==> 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+0+1+0+1+0
=6

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

EchoStar Corp has an F-score of 6 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.

EchoStar Corp Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 011111111
Question 2 111111111
Question 3 010010101
Question 4 101111111
Question 5 001011110
Question 6 011001101
Question 7 111000000
Question 8 111110111
Question 9 001101100
F-score 468566856

EchoStar Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 1111111111
Question 2 1111111111
Question 3 1111101111
Question 4 1111111111
Question 5 1111111100
Question 6 0110100011
Question 7 0000000000
Question 8 1111111111
Question 9 1100000000
F-score 7876756666
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