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Spartech Corporation (NYSE:SEH)
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

Spartech Corporation has an F-score of 7 indicating the company's financial situation is typical for a stable company.

SEH' 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 (Oct12) TTM:Last Year (Oct11) TTM:
Net Income was -2.249 + 3.671 + 1.838 + -0.663 = $3 Mil.
Cash Flow from Operations was -6.714 + 15.507 + 20.304 + 15.176 = $44 Mil.
Revenue was 281.781 + 298.323 + 282.447 + 286.804 = $1,149 Mil.
Gross Profit was 21.672 + 29.823 + 27.132 + 32.737 = $111 Mil.
Average Total Assets from the begining of this year (Oct11)
to the end of this year (Oct12) was
(549.702 + 544.36 + 560.945 + 537.142 + 544.633) / 5 = $547 Mil.
Total Assets as of Oct11 was $550 Mil.
Long-Term Debt was $112 Mil.
Total Current Assets was $284 Mil.
Total Current Liabilities was $204 Mil.
Net Income was 1.033 + 2.622 + 3.007 + -27.727 = $-21 Mil.

Revenue was 234.783 + 282.551 + 291.716 + 293.24 = $1,102 Mil.
Gross Profit was 18.406 + 27.077 + 26.665 + 25.214 = $97 Mil.
Average Total Assets from the begining of last year (Oct10)
to the end of last year (Oct11) was
(577.141 + 573.917 + 596.551 + 592.204 + 549.702) / 5 = $578 Mil.
Total Assets as of Oct10 was $577 Mil.
Long-Term Debt was $132 Mil.
Total Current Assets was $278 Mil.
Total Current Liabilities was $197 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Spartech Corporation's current net income (ttm) was 3. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Spartech Corporation's current cash flow from operations (ttm) was 44. ==> 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 (TTM)/Beginning of This Year Total Assets (Oct11)
=2.597/549.702
=0.00472438

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Oct10)
=-21.065/577.141
=-0.03649888

Spartech Corporation's return on assets of this year was 0.00472438. Spartech Corporation's return on assets of last year was -0.03649888. ==> 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.

Spartech Corporation's current net income (ttm) was 3. Spartech Corporation's current cash flow from operations (ttm) was 44. ==> 44 > 3 ==> 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: Oct12)=Long-Term Debt/Average Total Assets from Oct11 to Oct12
=112.288/547.3564
=0.20514604

Gearing (Last Year: Oct11)=Long-Term Debt/Average Total Assets from Oct10 to Oct11
=132/577.903
=0.22841203

Spartech Corporation's gearing of this year was 0.20514604. Spartech Corporation's gearing of last year was 0.22841203. ==> 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: Oct12)=Total Current Assets/Total Current Liabilities
=284.226/203.661
=1.39558384

Current Ratio (Last Year: Oct11)=Total Current Assets/Total Current Liabilities
=277.606/196.758
=1.4109007

Spartech Corporation's current ratio of this year was 1.39558384. Spartech Corporation's current ratio of last year was 1.4109007. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Spartech Corporation's number of shares in issue this year was 31. Spartech Corporation's number of shares in issue last year was 30.8. ==> There is larger 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: TTM)=Gross Profit/Revenue
=111.364/1149.355
=0.0968926

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=97.362/1102.29
=0.08832703

Spartech Corporation's gross margin of this year was 0.0968926. Spartech Corporation's gross margin of last year was 0.08832703. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by begining of the year total assets) 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)/Beginning of This Year Total Assets (Oct11)
=1149.355/549.702
=2.09086923

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Oct10)
=1102.29/577.141
=1.90991456

Spartech Corporation's asset turnover of this year was 2.09086923. Spartech Corporation's asset turnover of last year was 1.90991456. ==> 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+0+0+1+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Spartech Corporation has an F-score of 7 indicating the company's financial situation is typical for a stable company.


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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Spartech Corporation Annual Data

Oct03Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12
Q1 1111101001
Q2 1111111111
Q3 0101001011
Q4 1011111111
Q5 1011011011
Q6 0100001100
Q7 0010111000
Q8 0001001001
Q9 1101100111
F-score 5557548457

Spartech Corporation Quarterly Data

Jul10Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12
Q1 1000000001
Q2 1111111111
Q3 1000011111
Q4 1111111111
Q5 1010011111
Q6 1100100000
Q7 0111000000
Q8 0000000011
Q9 1111111111
F-score 7443444457
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