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Steelcase Inc (NYSE:SCS)
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

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

SCS' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 7

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 7.


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 (May16) TTM:Last Year (May15) TTM:
Net Income was 37.2 + 35.6 + 77.5 + 19.4 = $170 Mil.
Cash Flow from Operations was 89.5 + 76.8 + 55.9 + -65.7 = $157 Mil.
Revenue was 819 + 787.6 + 747.9 + 718.8 = $3,073 Mil.
Gross Profit was 266.8 + 253.5 + 234.3 + 229.8 = $984 Mil.
Average Total Assets from the begining of this year (May15)
to the end of this year (May16) was
(1648 + 1734.4 + 1791.4 + 1808.6 + 1675.9) / 5 = $1731.66 Mil.
Total Assets at the begining of this year (May15) was $1,648 Mil.
Long-Term Debt was $296 Mil.
Total Current Assets was $720 Mil.
Total Current Liabilities was $436 Mil.
Net Income was 30.5 + 11.8 + 22.8 + 20 = $85 Mil.

Revenue was 786.7 + 800 + 749.9 + 705.5 = $3,042 Mil.
Gross Profit was 244.4 + 214.9 + 227.6 + 216.6 = $904 Mil.
Average Total Assets from the begining of last year (May14)
to the end of last year (May15) was
(1656.2 + 1702.8 + 1735.8 + 1719.6 + 1648) / 5 = $1692.48 Mil.
Total Assets at the begining of last year (May14) was $1,656 Mil.
Long-Term Debt was $279 Mil.
Total Current Assets was $783 Mil.
Total Current Liabilities was $493 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.

Steelcase Inc'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.

Steelcase Inc's current cash flow from operations (TTM) was 157. ==> 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 (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (May14)
=85.1/1656.2
=0.05138268

Steelcase Inc's return on assets of this year was 0.1029733. Steelcase Inc's return on assets of last year was 0.05138268. ==> 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.

Steelcase Inc's current net income (TTM) was 170. Steelcase Inc's current cash flow from operations (TTM) was 157. ==> 157 <= 170 ==> CFROA <= ROA ==> Score 0.

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: May16)=Long-Term Debt/Average Total Assets from May15 to May16
=296.3/1731.66
=0.17110749

Gearing (Last Year: May15)=Long-Term Debt/Average Total Assets from May14 to May15
=279.3/1692.48
=0.16502411

Steelcase Inc's gearing of this year was 0.17110749. Steelcase Inc's gearing of last year was 0.16502411. ==> 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: May16)=Total Current Assets/Total Current Liabilities
=719.9/435.5
=1.65304248

Current Ratio (Last Year: May15)=Total Current Assets/Total Current Liabilities
=783.2/493.1
=1.5883188

Steelcase Inc's current ratio of this year was 1.65304248. Steelcase Inc's current ratio of last year was 1.5883188. ==> 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.

Steelcase Inc's number of shares in issue this year was 120.1. Steelcase Inc's number of shares in issue last year was 122.9. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=984.4/3073.3
=0.32030716

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=903.5/3042.1
=0.29699878

Steelcase Inc's gross margin of this year was 0.32030716. Steelcase Inc's gross margin of last year was 0.29699878. ==> 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 (May15)
=3073.3/1648
=1.8648665

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (May14)
=3042.1/1656.2
=1.83679507

Steelcase Inc's asset turnover of this year was 1.8648665. Steelcase Inc's asset turnover of last year was 1.83679507. ==> This year's asset turnover is higher. ==> Score 1.

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+0+0+1+1+1+1
=7

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

Steelcase Inc 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.

Steelcase Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
Question 1 1100111111
Question 2 1110111111
Question 3 1100110101
Question 4 1111111101
Question 5 0000110110
Question 6 1011011100
Question 7 0111111111
Question 8 1100111101
Question 9 1110101111
F-score 7753887957

Steelcase Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
Question 1 1111111111
Question 2 1111111111
Question 3 1111000111
Question 4 1111011110
Question 5 1111111000
Question 6 1110000101
Question 7 1111111011
Question 8 1110000111
Question 9 1111100111
F-score 9997555777
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