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SunPower Corp (NAS:SPWR)
Piotroski F-Score
4 (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 4 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: 4

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 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 14.102 + 65.044 + 22.338 + 108.386 = $210 Mil.
Cash Flow from Operations was -132.043 + 50.472 + 32.876 + 28.869 = $-20 Mil.
Revenue was 507.871 + 692.422 + 638.134 + 657.12 = $2,496 Mil.
Gross Profit was 94.145 + 162.989 + 130.668 + 193.23 = $581 Mil.
Total Assets at the begining of this year (Jun13) was $3,674 Mil.
Total Assets was $4,322 Mil.
Long-Term Debt was $967 Mil.
Total Current Assets was $2,525 Mil.
Total Current Liabilities was $1,375 Mil.
Net Income was 19.565 + -54.696 + -144.771 + -48.538 = $-228 Mil.

Revenue was 576.516 + 635.433 + 678.525 + 648.948 = $2,539 Mil.
Gross Profit was 107.861 + 59.313 + 46.877 + 80.773 = $295 Mil.
Total Assets at the begining of last year (Jun12) was $3,185 Mil.
Total Assets was $3,674 Mil.
Long-Term Debt was $666 Mil.
Total Current Assets was $2,107 Mil.
Total Current Liabilities was $1,322 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 210. ==> 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 -20. ==> Negative ==> Score 0.

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 (Jun13)
=209.87/3673.555
=0.05712995

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=-228.44/3185.482
=-0.07171285

SunPower Corp's return on assets of this year was 0.05712995. SunPower Corp's return on assets of last year was -0.07171285. ==> 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 210. SunPower Corp's current cash flow from operations was -20. ==> -20 =< 210 ==> 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
=966.625/4321.972
=0.22365369

Gearing (Last Year)=Long-Term Debt/Total Assets
=666.229/3673.555
=0.18135811

SunPower Corp's gearing of this year was 0.22365369. SunPower Corp's gearing of last year was 0.18135811. ==> 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
=2525.4/1375.378
=1.83614977

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2107.445/1321.971
=1.59416886

SunPower Corp's current ratio of this year was 1.83614977. SunPower Corp's current ratio of last year was 1.59416886. ==> 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 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 156.3. SunPower Corp's number of shares in issue last year was 134. ==> 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
=581.032/2495.547
=0.23282751

Gross Margin (Last Year)=Gross Profit/Revenue
=294.824/2539.422
=0.11609886

SunPower Corp's gross margin of this year was 0.23282751. SunPower Corp's gross margin of last year was 0.11609886. ==> 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 (Jun13)
=2495.547/3673.555
=0.67932752

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=2539.422/3185.482
=0.79718611

SunPower Corp's asset turnover of this year was 0.67932752. SunPower Corp's asset turnover of last year was 0.79718611. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+0+1+0+0+1+0+1+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

SunPower 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 own currency.

SunPower Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 011011001
Q2 101111011
Q3 110011011
Q4 100110111
Q5 111001001
Q6 100110010
Q7 000100100
Q8 110101011
Q9 101001011
F-score 744556267

SunPower Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 0000000111
Q2 0111111110
Q3 0011111111
Q4 1111111100
Q5 0010111110
Q6 1101000001
Q7 0000000000
Q8 0001111111
Q9 0001111110
F-score 2346666764
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