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Steelcase Inc (NYSE:SCS)
Piotroski F-Score
9 (As of Today)

Good Sign:

Piotroski F-Score of 9 is 9, 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

Steelcase Inc has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

SCS' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 9

3
9

During the past 13 years, the highest Piotroski F-Score of Steelcase Inc was 9. The lowest was 3. 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 (May14) TTM:Last Year (May13) TTM:
Net Income was 21 + 23.9 + 23 + 27.6 = $96 Mil.
Cash Flow from Operations was -72.6 + 81.8 + 79.9 + 56.4 = $146 Mil.
Revenue was 723.1 + 779.4 + 784.8 + 757.6 = $3,045 Mil.
Gross Profit was 229.1 + 248.4 + 242.8 + 244.3 = $965 Mil.
Total Assets at the begining of this year (May13) was $1,618 Mil.
Total Assets was $1,656 Mil.
Long-Term Debt was $284 Mil.
Total Current Assets was $824 Mil.
Total Current Liabilities was $473 Mil.
Net Income was 13.2 + -27.5 + 23.6 + 29.5 = $39 Mil.

Revenue was 667.1 + 721.4 + 727.2 + 744.9 = $2,861 Mil.
Gross Profit was 209.7 + 216 + 225.9 + 228.1 = $880 Mil.
Total Assets at the begining of last year (May12) was $1,663 Mil.
Total Assets was $1,618 Mil.
Long-Term Debt was $286 Mil.
Total Current Assets was $693 Mil.
Total Current Liabilities was $457 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.

Steelcase Inc's current net income was 96. ==> 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.

Steelcase Inc's current cash flow from operations was 146. ==> 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 (May13)
=95.5/1618.2
=0.05901619

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (May12)
=38.8/1663.4
=0.02332572

Steelcase Inc's return on assets of this year was 0.05901619. Steelcase Inc's return on assets of last year was 0.02332572. ==> 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.

Steelcase Inc's current net income was 96. Steelcase Inc's current cash flow from operations was 146. ==> 146 > 96 ==> 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
=283.8/1656.2
=0.17135612

Gearing (Last Year)=Long-Term Debt/Total Assets
=285.8/1618.2
=0.17661599

Steelcase Inc's gearing of this year was 0.17135612. Steelcase Inc's gearing of last year was 0.17661599. ==> 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
=824.1/472.8
=1.7430203

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=692.7/456.5
=1.51741512

Steelcase Inc's current ratio of this year was 1.7430203. Steelcase Inc's current ratio of last year was 1.51741512. ==> 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.

Steelcase Inc's number of shares in issue this year was 124.4. Steelcase Inc's number of shares in issue last year was 126.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=964.6/3044.9
=0.31679201

Gross Margin (Last Year)=Gross Profit/Revenue
=879.7/2860.6
=0.3075229

Steelcase Inc's gross margin of this year was 0.31679201. Steelcase Inc's gross margin of last year was 0.3075229. ==> 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 (May13)
=3044.9/1618.2
=1.88165863

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (May12)
=2860.6/1663.4
=1.71973067

Steelcase Inc's asset turnover of this year was 1.88165863. Steelcase Inc's asset turnover of last year was 1.71973067. ==> 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+1+1+1
=9

Good or high score = 8 or 9

Bad or low score = 0 or 1

Steelcase Inc has an F-score of 9. 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.

Steelcase Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
Q1 1111001111
Q2 1111101111
Q3 1111001101
Q4 1111111111
Q5 1100001011
Q6 0010110111
Q7 1001111111
Q8 1111001111
Q9 1111101011
F-score 8777538789

Steelcase Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
Q1 1111111111
Q2 1111111111
Q3 1111000011
Q4 1111111111
Q5 0001101111
Q6 1111110111
Q7 0111111111
Q8 1111111111
Q9 0011111111
F-score 6789877899
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