Switch to:
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 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 (Nov15) TTM:Last Year (Nov14) TTM:
Net Income was 22.8 + 20 + 37.2 + 35.6 = $116 Mil.
Cash Flow from Operations was 76.7 + -35.8 + 89.5 + 76.8 = $207 Mil.
Revenue was 749.9 + 705.5 + 819 + 787.6 = $3,062 Mil.
Gross Profit was 227.6 + 216.6 + 266.8 + 253.5 = $965 Mil.
Average Total Assets from the begining of this year (Nov14)
to the end of this year (Nov15) was
(1735.8 + 1721.8 + 1648 + 1734.4 + 1791.4) / 5 = $1726.28 Mil.
Total Assets at the begining of this year (Nov14) was $1,736 Mil.
Long-Term Debt was $297 Mil.
Total Current Assets was $914 Mil.
Total Current Liabilities was $566 Mil.
Net Income was 23.9 + 21 + 30.5 + 11.8 = $87 Mil.

Revenue was 779.4 + 723.1 + 786.7 + 800 = $3,089 Mil.
Gross Profit was 248.4 + 229.1 + 244.4 + 214.9 = $937 Mil.
Average Total Assets from the begining of last year (Nov13)
to the end of last year (Nov14) was
(1775.8 + 1726.7 + 1656.2 + 1702.8 + 1735.8) / 5 = $1719.46 Mil.
Total Assets at the begining of last year (Nov13) was $1,776 Mil.
Long-Term Debt was $283 Mil.
Total Current Assets was $868 Mil.
Total Current Liabilities was $571 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 116. ==> 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 207. ==> 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 (Nov14)
=115.6/1735.8
=0.06659753

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Nov13)
=87.2/1775.8
=0.04910463

Steelcase Inc's return on assets of this year was 0.06659753. Steelcase Inc's return on assets of last year was 0.04910463. ==> 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 116. Steelcase Inc's current cash flow from operations (TTM) was 207. ==> 207 > 116 ==> 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: Nov15)=Long-Term Debt/Average Total Assets from Nov14 to Nov15
=297.1/1726.28
=0.17210418

Gearing (Last Year: Nov14)=Long-Term Debt/Average Total Assets from Nov13 to Nov14
=282.5/1719.46
=0.16429577

Steelcase Inc's gearing of this year was 0.17210418. Steelcase Inc's gearing of last year was 0.16429577. ==> 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: Nov15)=Total Current Assets/Total Current Liabilities
=913.7/566.3
=1.61345577

Current Ratio (Last Year: Nov14)=Total Current Assets/Total Current Liabilities
=867.5/570.9
=1.51953057

Steelcase Inc's current ratio of this year was 1.61345577. Steelcase Inc's current ratio of last year was 1.51953057. ==> 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 123.4. Steelcase Inc's number of shares in issue last year was 122.9. ==> 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
=964.5/3062
=0.3149902

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=936.8/3089.2
=0.30325003

Steelcase Inc's gross margin of this year was 0.3149902. Steelcase Inc's gross margin of last year was 0.30325003. ==> 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 (Nov14)
=3062/1735.8
=1.76402811

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Nov13)
=3089.2/1775.8
=1.73961032

Steelcase Inc's asset turnover of this year was 1.76402811. Steelcase Inc's asset turnover of last year was 1.73961032. ==> 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+1+0+1+0+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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
Question 1 1110011111
Question 2 1111011111
Question 3 1110011010
Question 4 1111111110
Question 5 1000011011
Question 6 0101101110
Question 7 0011110111
Question 8 1110011110
Question 9 1111010111
F-score 7775387795

Steelcase Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
Question 1 1111111111
Question 2 1111111111
Question 3 0011110001
Question 4 1111110111
Question 5 1111111110
Question 6 0111100001
Question 7 1111111110
Question 8 1111100001
Question 9 1111111001
F-score 7899975557
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)

GuruFocus Premium Plus Membership

FEEDBACK