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China Petroleum & Chemical Corp (NYSE:SNP)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

China Petroleum & Chemical Corp has an F-score of 5 indicating the company's financial situation is typical for a stable company.

SNP' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 5

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 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 2268.43373494 + 2285.9031565 + 3607.8977552 + 2217.80241278 = $10,380 Mil.
Cash Flow from Operations was 2027.46987952 + 11945.2982978 + 7653.44912338 + 4041.73459407 = $25,668 Mil.
Revenue was 102982.329317 + 122357.7921 + 118741.602491 + 117325.236387 = $461,407 Mil.
Gross Profit was 19987.7911647 + 21747.4797554 + 21705.8823529 + 18601.07597 = $82,042 Mil.
Total Assets at the begining of this year (Mar13) was $210,809 Mil.
Total Assets was $226,244 Mil.
Long-Term Debt was $23,412 Mil.
Total Current Assets was $65,206 Mil.
Total Current Liabilities was $92,941 Mil.
Net Income was 2695.92628516 + 3383.15654131 + 2926.07376657 + 1741.52542373 = $10,747 Mil.

Revenue was 112442.774006 + 122352.780456 + 108046.303688 + 106200.094162 = $449,042 Mil.
Gross Profit was 19826.2204979 + 20935.3905497 + 18711.0011177 + 17471.7514124 = $76,944 Mil.
Total Assets at the begining of last year (Mar12) was $191,859 Mil.
Total Assets was $210,809 Mil.
Long-Term Debt was $15,451 Mil.
Total Current Assets was $64,736 Mil.
Total Current Liabilities was $87,748 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.

China Petroleum & Chemical Corp's current net income was 10,380. ==> 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.

China Petroleum & Chemical Corp's current cash flow from operations was 25,668. ==> 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 (Mar13)
=10380.0370594/210809.408341
=0.04923896

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=10746.6820168/191859.137056
=0.0560134

China Petroleum & Chemical Corp's return on assets of this year was 0.04923896. China Petroleum & Chemical Corp's return on assets of last year was 0.0560134. ==> Last year is higher ==> Score 0.

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.

China Petroleum & Chemical Corp's current net income was 10,380. China Petroleum & Chemical Corp's current cash flow from operations was 25,668. ==> 25,668 > 10,380 ==> 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)=Long-Term Debt/Total Assets
=23411.5662651/226243.694779
=0.10347942

Gearing (Last Year)=Long-Term Debt/Total Assets
=15450.5334627/210809.408341
=0.07329148

China Petroleum & Chemical Corp's gearing of this year was 0.10347942. China Petroleum & Chemical Corp's gearing of last year was 0.07329148. ==> Last year is lower than this year ==> Score 0.

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
=65205.9437751/92941.3654618
=0.70158151

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=64735.6935015/87747.6559974
=0.73774841

China Petroleum & Chemical Corp's current ratio of this year was 0.70158151. China Petroleum & Chemical Corp's current ratio of last year was 0.73774841. ==> 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.

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 0. ==> There is smaller number of shares in issue this year, or the same. ==> 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
=82042.229243/461406.960296
=0.17780882

Gross Margin (Last Year)=Gross Profit/Revenue
=76944.3635777/449041.952313
=0.17135228

China Petroleum & Chemical Corp's gross margin of this year was 0.17780882. China Petroleum & Chemical Corp's gross margin of last year was 0.17135228. ==> 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 (Mar13)
=461406.960296/210809.408341
=2.18873989

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=449041.952313/191859.137056
=2.34047729

China Petroleum & Chemical Corp's asset turnover of this year was 2.18873989. China Petroleum & Chemical Corp's asset turnover of last year was 2.34047729. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+0+1+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

China Petroleum & Chemical Corp has an F-score of 5 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


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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1010011000
Q4 1111111111
Q5 0111000110
Q6 1101011000
Q7 1011100110
Q8 0000010001
Q9 1111101100
F-score 7677566654

China Petroleum & Chemical Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 111111
Q2 111111
Q3 001100
Q4 111111
Q5 111100
Q6 000000
Q7 000001
Q8 011111
Q9 001100
F-score 4878707045
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