Switch to:
GuruFocus has detected 6 Warning Signs with The Spectranetics Corp $SPNC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
The Spectranetics Corp (NAS:SPNC)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

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

The Spectranetics Corp has an F-score of 4 indicating the company's financial situation is typical for a stable company.

SPNC' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Max: 8
Current: 4

1
8

During the past 13 years, the highest Piotroski F-Score of The Spectranetics Corp was 8. The lowest was 1. And the median was 4.


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 local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was -17.291 + -14.906 + -13.312 + -12.611 = $-58.1 Mil.
Cash Flow from Operations was -12.444 + -1.873 + -5.878 + -4.238 = $-24.4 Mil.
Revenue was 62.884 + 67.748 + 68.265 + 71.926 = $270.8 Mil.
Gross Profit was 46.802 + 50.765 + 51.381 + 53.549 = $202.5 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(467.999 + 450.547 + 439.261 + 431.862 + 430.078) / 5 = $443.9494 Mil.
Total Assets at the begining of this year (Dec15) was $468.0 Mil.
Long-Term Debt was $284.8 Mil.
Total Current Assets was $135.5 Mil.
Total Current Liabilities was $66.9 Mil.
Net Income was -27.305 + -7.216 + -14.493 + -10.46 = $-59.5 Mil.

Revenue was 57.422 + 61.677 + 61.66 + 65.197 = $246.0 Mil.
Gross Profit was 42.369 + 45.763 + 45.851 + 48.839 = $182.8 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(457.838 + 443.789 + 448.977 + 436.725 + 467.999) / 5 = $451.0656 Mil.
Total Assets at the begining of last year (Dec14) was $457.8 Mil.
Long-Term Debt was $283.7 Mil.
Total Current Assets was $158.3 Mil.
Total Current Liabilities was $63.7 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.

The Spectranetics Corp's current net income (TTM) was -58.1. ==> Negative ==> Score 0.

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.

The Spectranetics Corp's current cash flow from operations (TTM) was -24.4. ==> Negative ==> Score 0.

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 (Dec15)
=-58.12/467.999
=-0.1241883

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=-59.474/457.838
=-0.12990184

The Spectranetics Corp's return on assets of this year was -0.1241883. The Spectranetics Corp's return on assets of last year was -0.12990184. ==> 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.

The Spectranetics Corp's current net income (TTM) was -58.1. The Spectranetics Corp's current cash flow from operations (TTM) was -24.4. ==> -24.4 > -58.1 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=284.759/443.9494
=0.6414222

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=283.677/451.0656
=0.62890409

The Spectranetics Corp's gearing of this year was 0.6414222. The Spectranetics Corp's gearing of last year was 0.62890409. ==> 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: Dec16)=Total Current Assets/Total Current Liabilities
=135.532/66.942
=2.02461833

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=158.279/63.679
=2.48557609

The Spectranetics Corp's current ratio of this year was 2.02461833. The Spectranetics Corp's current ratio of last year was 2.48557609. ==> Last year's current ratio is higher ==> Score 0.

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.

The Spectranetics Corp's number of shares in issue this year was 42.9. The Spectranetics Corp's number of shares in issue last year was 42.4. ==> 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
=202.497/270.823
=0.74770976

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=182.822/245.956
=0.74331181

The Spectranetics Corp's gross margin of this year was 0.74770976. The Spectranetics Corp's gross margin of last year was 0.74331181. ==> 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 (Dec15)
=270.823/467.999
=0.57868286

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=245.956/457.838
=0.53721185

The Spectranetics Corp's asset turnover of this year was 0.57868286. The Spectranetics Corp's asset turnover of last year was 0.53721185. ==> 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
=0+0+1+1+0+0+0+1+1
=4

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

The Spectranetics Corp has an F-score of 4 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 local exchange's currency.

The Spectranetics Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1000110000
Question 2 0001111000
Question 3 1000110011
Question 4 0111111111
Question 5 1111111000
Question 6 0011011000
Question 7 0100000000
Question 8 1000111011
Question 9 0111101001
F-score 4445776134

The Spectranetics Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 0000000000
Question 2 0000000000
Question 3 0000011111
Question 4 1111111111
Question 5 0001100000
Question 6 0000000110
Question 7 1000000000
Question 8 1000011111
Question 9 0000000111
F-score 3112233554
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)
FEEDBACK