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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 (Feb14) TTM:Last Year (Feb13) TTM:
Net Income was 23.9 + 23 + 27.6 + 13.2 = $88 Mil.
Cash Flow from Operations was 81.8 + 79.9 + 56.4 + -39.3 = $179 Mil.
Revenue was 779.4 + 784.8 + 757.6 + 667.1 = $2,989 Mil.
Gross Profit was 248.4 + 242.8 + 244.3 + 209.7 = $945 Mil.
Total Assets at the begining of this year (Feb13) was $1,690 Mil.
Total Assets was $1,727 Mil.
Long-Term Debt was $284 Mil.
Total Current Assets was $890 Mil.
Total Current Liabilities was $538 Mil.
Net Income was -27.5 + 23.6 + 29.5 + 13.2 = $39 Mil.

Revenue was 721.4 + 727.2 + 744.9 + 675.2 = $2,869 Mil.
Gross Profit was 216 + 225.9 + 228.1 + 196 = $866 Mil.
Total Assets at the begining of last year (Feb12) was $1,679 Mil.
Total Assets was $1,690 Mil.
Long-Term Debt was $286 Mil.
Total Current Assets was $779 Mil.
Total Current Liabilities was $485 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 88. ==> 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 179. ==> 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 (Feb13)
=87.7/1689.6
=0.05190578

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Feb12)
=38.8/1678.9
=0.02311037

Steelcase Inc's return on assets of this year was 0.05190578. Steelcase Inc's return on assets of last year was 0.02311037. ==> 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 88. Steelcase Inc's current cash flow from operations was 179. ==> 179 > 88 ==> 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
=284.4/1726.7
=0.16470725

Gearing (Last Year)=Long-Term Debt/Total Assets
=286.4/1689.6
=0.16950758

Steelcase Inc's gearing of this year was 0.16470725. Steelcase Inc's gearing of last year was 0.16950758. ==> This year is lower. ==> 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
=889.9/538.2
=1.65347454

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=778.6/484.8
=1.6060231

Steelcase Inc's current ratio of this year was 1.65347454. Steelcase Inc's current ratio of last year was 1.6060231. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Steelcase Inc's number of shares in issue this year was 123.9. Steelcase Inc's number of shares in issue last year was 129.2. ==> There is the same number of shares in issue this year, or fewer. ==> 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
=945.2/2988.9
=0.31623674

Gross Margin (Last Year)=Gross Profit/Revenue
=866/2868.7
=0.3018789

Steelcase Inc's gross margin of this year was 0.31623674. Steelcase Inc's gross margin of last year was 0.3018789. ==> 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 (Feb13)
=2988.9/1689.6
=1.76899858

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Feb12)
=2868.7/1678.9
=1.7086783

Steelcase Inc's asset turnover of this year was 1.76899858. Steelcase Inc's asset turnover of last year was 1.7086783. ==> 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 1001110111
Q8 1111001111
Q9 1111101011
F-score 8777537789

Steelcase Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
Q1 1111111111
Q2 1111111111
Q3 1111100001
Q4 1111111111
Q5 0000110111
Q6 1111111011
Q7 1011111111
Q8 1111111111
Q9 1001111111
F-score 8678987789
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