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SodaStream International Ltd. (NAS:SODA)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

SodaStream International Ltd. has an F-score of 3 indicating the company's financial situation is typical for a stable company.

SODA' s 10-Year Piotroski F-Score Range
Min: 2   Max: 5
Current: 3

2
5

During the past 6 years, the highest Piotroski F-Score of SodaStream International Ltd. was 5. The lowest was 2. And the median was 3.


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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 0.681 + 16.399 + 12.863 + 12.084 = $42.0 Mil.
Cash Flow from Operations was 20.444 + 4.953 + -12.525 + -8.464 = $4.4 Mil.
Revenue was 168.11 + 144.584 + 132.39 + 117.639 = $562.7 Mil.
Gross Profit was 71.329 + 78.218 + 71.938 + 64.085 = $285.6 Mil.
Total Assets at the begining of this year (Dec12) was $412.4 Mil.
Total Assets was $485.0 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $328.3 Mil.
Total Current Liabilities was $147.5 Mil.
Net Income was 7.533 + 16.766 + 9.45 + 10.111 = $43.9 Mil.

Revenue was 132.947 + 112.482 + 103.019 + 87.868 = $436.3 Mil.
Gross Profit was 70.508 + 60.951 + 56.003 + 48.363 = $235.8 Mil.
Total Assets at the begining of last year (Dec11) was $303.7 Mil.
Total Assets was $412.4 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $291.1 Mil.
Total Current Liabilities was $133.9 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.

SodaStream International Ltd.'s current net income was 42.0. ==> 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.

SodaStream International Ltd.'s current cash flow from operations was 4.4. ==> 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 (Dec12)
=42.027/412.377
=0.10191403

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=43.86/303.738
=0.14440077

SodaStream International Ltd.'s return on assets of this year was 0.10191403. SodaStream International Ltd.'s return on assets of last year was 0.14440077. ==> 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.

SodaStream International Ltd.'s current net income was 42.0. SodaStream International Ltd.'s current cash flow from operations was 4.4. ==> 4.4 =< 42.0 ==> CFROA =< ROA ==> Score 0.

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
=0/484.999
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/412.377
=0

SodaStream International Ltd.'s gearing of this year was 0. SodaStream International Ltd.'s gearing of last year was 0. ==> Last year is lower ==> 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
=328.276/147.461
=2.22618862

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=291.089/133.884
=2.1741881

SodaStream International Ltd.'s current ratio of this year was 2.22618862. SodaStream International Ltd.'s current ratio of last year was 2.1741881. ==> 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.

SodaStream International Ltd.'s number of shares in issue this year was 21.5. SodaStream International Ltd.'s number of shares in issue last year was 20.9. ==> There is more 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)=Gross Profit/Revenue
=285.57/562.723
=0.50747881

Gross Margin (Last Year)=Gross Profit/Revenue
=235.825/436.316
=0.5404913

SodaStream International Ltd.'s gross margin of this year was 0.50747881. SodaStream International Ltd.'s gross margin of last year was 0.5404913. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec12)
=562.723/412.377
=1.36458386

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=436.316/303.738
=1.43648803

SodaStream International Ltd.'s asset turnover of this year was 1.36458386. SodaStream International Ltd.'s asset turnover of last year was 1.43648803. ==> 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+0+0+1+0+0+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

SodaStream International Ltd. has an F-score of 3 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.

SodaStream International Ltd. Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13
Q1 11
Q2 11
Q3 10
Q4 00
Q5 00
Q6 01
Q7 00
Q8 00
Q9 10
F-score 43

SodaStream International Ltd. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111
Q2 1111111
Q3 0010100
Q4 0000000
Q5 0000000
Q6 0000001
Q7 0010000
Q8 1100000
Q9 0010110
F-score 0003352430
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