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SunPower Corp (NAS:SPWR)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

SunPower Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

SPWR' s 10-Year Piotroski F-Score Range
Min: 2   Max: 7
Current: 6

2
7

During the past 13 years, the highest Piotroski F-Score of SunPower Corp was 7. The lowest was 2. 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 own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 65.044 + 22.338 + 108.386 + 19.565 = $215 Mil.
Cash Flow from Operations was 50.472 + 32.876 + 28.869 + -66.179 = $46 Mil.
Revenue was 692.422 + 638.134 + 657.12 + 576.516 = $2,564 Mil.
Gross Profit was 162.989 + 130.668 + 193.23 + 107.861 = $595 Mil.
Total Assets at the begining of this year (Mar13) was $3,163 Mil.
Total Assets was $3,826 Mil.
Long-Term Debt was $424 Mil.
Total Current Assets was $2,035 Mil.
Total Current Liabilities was $1,505 Mil.
Net Income was -54.696 + -144.771 + -48.538 + -84.181 = $-332 Mil.

Revenue was 635.433 + 678.525 + 648.948 + 595.897 = $2,559 Mil.
Gross Profit was 59.313 + 46.877 + 80.773 + 73.5 = $260 Mil.
Total Assets at the begining of last year (Mar12) was $3,214 Mil.
Total Assets was $3,163 Mil.
Long-Term Debt was $559 Mil.
Total Current Assets was $1,726 Mil.
Total Current Liabilities was $1,025 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.

SunPower Corp's current net income was 215. ==> 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.

SunPower Corp's current cash flow from operations was 46. ==> 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)
=215.333/3162.717
=0.06808481

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=-332.186/3214.087
=-0.10335315

SunPower Corp's return on assets of this year was 0.06808481. SunPower Corp's return on assets of last year was -0.10335315. ==> 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.

SunPower Corp's current net income was 215. SunPower Corp's current cash flow from operations was 46. ==> 46 =< 215 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=423.502/3826.341
=0.11068067

Gearing (Last Year)=Long-Term Debt/Total Assets
=559.348/3162.717
=0.1768568

SunPower Corp's gearing of this year was 0.11068067. SunPower Corp's gearing of last year was 0.1768568. ==> 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)=Total Current Assets/Total Current Liabilities
=2034.827/1505.118
=1.35193852

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1725.715/1025.43
=1.68291839

SunPower Corp's current ratio of this year was 1.35193852. SunPower Corp's current ratio of last year was 1.68291839. ==> 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.

SunPower Corp's number of shares in issue this year was 160.4. SunPower Corp's number of shares in issue last year was 119.6. ==> 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)=Gross Profit/Revenue
=594.748/2564.192
=0.23194363

Gross Margin (Last Year)=Gross Profit/Revenue
=260.463/2558.803
=0.10179095

SunPower Corp's gross margin of this year was 0.23194363. SunPower Corp's gross margin of last year was 0.10179095. ==> 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)
=2564.192/3162.717
=0.81075607

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=2558.803/3214.087
=0.79612126

SunPower Corp's asset turnover of this year was 0.81075607. SunPower Corp's asset turnover of last year was 0.79612126. ==> 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+0+1+0+0+1+1
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

SunPower Corp has an F-score of 6 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.

SunPower Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 011011001
Q2 101111011
Q3 110011011
Q4 100110111
Q5 111001001
Q6 100110000
Q7 000100100
Q8 110101011
Q9 101001001
F-score 744556247

SunPower Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 0000000011
Q2 0011111111
Q3 0001111111
Q4 1111111110
Q5 0001011111
Q6 0110000000
Q7 1000000000
Q8 0000111111
Q9 0000011111
F-score 2234466676
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