Switch to:
Sycamore Networks Inc (OTCPK:SCMR)
Piotroski F-Score
0 (As of Today)

The zones of discrimination were as such:

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

Sycamore Networks Inc has an F-score of 1. It is a bad or low score, which usually implies poor business operation.

SCMR' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Jan13) TTM:Last Year (Jan12) TTM:
Net Income was -5.24 + -6.756 + -2.525 + -5.091 = $-19.61 Mil.
Cash Flow from Operations was -8.828 + -5.013 + -0.362 + -0.059 = $-14.26 Mil.
Revenue was 9.47 + 12.064 + 16.799 + 11.922 = $50.26 Mil.
Gross Profit was 5.449 + 7.161 + 9.62 + 6.467 = $28.70 Mil.
Total Assets at the begining of this year (Jan12) was $468.50 Mil.
Total Assets was $87.09 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $83.41 Mil.
Total Current Liabilities was $13.02 Mil.
Net Income was -3.694 + -1.614 + -3.618 + -4.136 = $-13.06 Mil.

Revenue was 13.184 + 15.38 + 12.959 + 11.863 = $53.39 Mil.
Gross Profit was 7.749 + 9.118 + 7.332 + 6.982 = $31.18 Mil.
Total Assets at the begining of last year (Jan11) was $474.91 Mil.
Total Assets was $468.50 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $388.65 Mil.
Total Current Liabilities was $18.50 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.

Sycamore Networks Inc's current net income was -19.61. ==> Negative ==> Score 0.

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.

Sycamore Networks Inc's current cash flow from operations was -14.26. ==> Negative ==> Score 0.

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 (Jan12)
=-19.612/468.495
=-0.04186171

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jan11)
=-13.062/474.907
=-0.02750433

Sycamore Networks Inc's return on assets of this year was -0.04186171. Sycamore Networks Inc's return on assets of last year was -0.02750433. ==> Last year is higher ==> Score 0.

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.

Sycamore Networks Inc's current net income was -19.61. Sycamore Networks Inc's current cash flow from operations was -14.26. ==> -14.26 > -19.61 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=0/87.093
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/468.495
=0

Sycamore Networks Inc's gearing of this year was 0. Sycamore Networks Inc's gearing of last year was 0. ==> Last year is lower ==> Score 0.

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
=83.414/13.015
=6.40906646

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=388.645/18.5
=21.00783784

Sycamore Networks Inc's current ratio of this year was 6.40906646. Sycamore Networks Inc's current ratio of last year was 21.00783784. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Sycamore Networks Inc's number of shares in issue this year was 28.9. Sycamore Networks Inc's number of shares in issue last year was 28.8. ==> There is more 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
=28.697/50.255
=0.57102776

Gross Margin (Last Year)=Gross Profit/Revenue
=31.181/53.386
=0.58406698

Sycamore Networks Inc's gross margin of this year was 0.57102776. Sycamore Networks Inc's gross margin of last year was 0.58406698. ==> Last year's gross margin is higher ==> Score 0.

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 (Jan12)
=50.255/468.495
=0.10726902

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jan11)
=53.386/474.907
=0.11241359

Sycamore Networks Inc's asset turnover of this year was 0.10726902. Sycamore Networks Inc's asset turnover of last year was 0.11241359. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Sycamore Networks Inc has an F-score of 1. 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.

Sycamore Networks Inc Annual Data

Jul03Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12
Q1 0001000000
Q2 0001110000
Q3 1011010100
Q4 1111111111
Q5 0000000010
Q6 1010010100
Q7 0010100000
Q8 1111010101
Q9 0111100111
F-score 4366451533

Sycamore Networks Inc Quarterly Data

Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13
Q1 0000000000
Q2 1000000000
Q3 1110000000
Q4 1111011111
Q5 1100000000
Q6 1110000000
Q7 0000000000
Q8 1110111100
Q9 1111111110
F-score 7652233321
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide