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China Petroleum & Chemical Corp (NYSE:SNP)
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

China Petroleum & Chemical Corp has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

SNP' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 7

4
8

During the past 13 years, the highest Piotroski F-Score of China Petroleum & Chemical Corp was 8. The lowest was 4. And the median was 5.


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 (Mar15) TTM:Last Year (Dec13) TTM:
Net Income was 2287.54252389 + 2956.69758932 + 0 + 348.155034783 = $5,592 Mil.
Cash Flow from Operations was 2044.54884173 + 0 + 23971.0112142 + 1071.07363832 = $27,087 Mil.
Revenue was 103849.829904 + 114773.376561 + 0 + 76658.384894 = $295,282 Mil.
Gross Profit was 20156.1639397 + 20288.0942445 + 0 + 19129.7727054 = $59,574 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Mar15) was
(227677.971683 + 228149.522112 + 229439.058839 + 0 + 230188.022954) / 5 = $183090.915118 Mil.
Total Assets at the begining of this year (Dec13) was $227,678 Mil.
Long-Term Debt was $14,022 Mil.
Total Current Assets was $57,286 Mil.
Total Current Liabilities was $77,364 Mil.
Net Income was 2683.34674175 + 2217.80241278 + 3597.87581699 + 2277.2472835 = $10,776 Mil.

Revenue was 111918.101368 + 117325.236387 + 118411.764706 + 121894.468225 = $469,550 Mil.
Gross Profit was 20312.9525342 + 18014.183241 + 21645.5882353 + 21665.1300626 = $81,638 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(201819.990374 + 209825.744167 + 207643.951744 + 215585.784314 + 227677.971683) / 5 = $212510.688456 Mil.
Total Assets at the begining of last year (Dec12) was $201,820 Mil.
Long-Term Debt was $23,969 Mil.
Total Current Assets was $61,411 Mil.
Total Current Liabilities was $94,143 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.

China Petroleum & Chemical Corp's current net income (TTM) was 5,592. ==> 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.

China Petroleum & Chemical Corp's current cash flow from operations (TTM) was 27,087. ==> 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 (Dec13)
=5592.395148/227677.971683
=0.02456274

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=10776.272255/201819.990374
=0.05339547

China Petroleum & Chemical Corp's return on assets of this year was 0.02456274. China Petroleum & Chemical Corp's return on assets of last year was 0.05339547. ==> Last year is higher ==> Score 0.

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.

China Petroleum & Chemical Corp's current net income (TTM) was 5,592. China Petroleum & Chemical Corp's current cash flow from operations (TTM) was 27,087. ==> 27,087 > 5,592 ==> 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: Mar15)=Long-Term Debt/Average Total Assets from Dec13 to Mar15
=14022.0562306/183090.915118
=0.07658521

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=23969.3776753/212510.688456
=0.1127914

China Petroleum & Chemical Corp's gearing of this year was 0.07658521. China Petroleum & Chemical Corp's gearing of last year was 0.1127914. ==> This year is lower or equal to last year. ==> Score 1.

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: Mar15)=Total Current Assets/Total Current Liabilities
=57285.9295355/77364.1522136
=0.74047124

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=61410.9318406/94142.5749095
=0.65231838

China Petroleum & Chemical Corp's current ratio of this year was 0.74047124. China Petroleum & Chemical Corp's current ratio of last year was 0.65231838. ==> 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.

China Petroleum & Chemical Corp's number of shares in issue this year was 0. China Petroleum & Chemical Corp's number of shares in issue last year was 1218.6. ==> 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
=59574.0308897/295281.591359
=0.20175328

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=81637.854073/469549.570686
=0.17386419

China Petroleum & Chemical Corp's gross margin of this year was 0.20175328. China Petroleum & Chemical Corp's gross margin of last year was 0.17386419. ==> 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 (Dec13)
=295281.591359/227677.971683
=1.29692648

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=469549.570686/201819.990374
=2.32657612

China Petroleum & Chemical Corp's asset turnover of this year was 1.29692648. China Petroleum & Chemical Corp's asset turnover of last year was 2.32657612. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+1+0
=7

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

China Petroleum & Chemical Corp 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.

China Petroleum & Chemical Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Question 1 111111111
Question 2 111111111
Question 3 101010100
Question 4 000011011
Question 5 110100111
Question 6 101011000
Question 7 111100100
Question 8 000010100
Question 9 111011100
F-score 756475744

China Petroleum & Chemical Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Dec14Mar15
Question 1 111111
Question 2 111111
Question 3 010000
Question 4 111111
Question 5 111001
Question 6 000001
Question 7 000001
Question 8 000111
Question 9 010000
F-score 464447
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