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SunPower Corp (NAS:SPWR)
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

SunPower Corp has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

SPWR' s 10-Year Piotroski F-Score Range
Min: 2   Max: 7
Current: 3

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 (Mar15) TTM:Last Year (Mar14) TTM:
Net Income was 14.102 + 32.033 + 134.715 + -9.581 = $171 Mil.
Cash Flow from Operations was -132.043 + -32.418 + 122.349 + -113.408 = $-156 Mil.
Revenue was 507.871 + 662.734 + 1164.238 + 440.871 = $2,776 Mil.
Gross Profit was 94.145 + 108.514 + 259.479 + 90.818 = $553 Mil.
Average Total Assets from the begining of this year (Mar14)
to the end of this year (Mar15) was
(3826.341 + 4321.972 + 4408.538 + 4357.182 + 4103.141) / 5 = $4203.4348 Mil.
Total Assets at the begining of this year (Mar14) was $3,826 Mil.
Long-Term Debt was $1,121 Mil.
Total Current Assets was $2,061 Mil.
Total Current Liabilities was $837 Mil.
Net Income was 19.565 + 108.386 + 22.338 + 65.044 = $215 Mil.

Revenue was 576.516 + 657.12 + 638.134 + 692.422 = $2,564 Mil.
Gross Profit was 107.861 + 193.23 + 130.668 + 162.989 = $595 Mil.
Average Total Assets from the begining of last year (Mar13)
to the end of last year (Mar14) was
(3162.717 + 3673.555 + 3759.092 + 3898.69 + 3826.341) / 5 = $3664.079 Mil.
Total Assets at the begining of last year (Mar13) was $3,163 Mil.
Long-Term Debt was $424 Mil.
Total Current Assets was $2,035 Mil.
Total Current Liabilities was $1,505 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.

SunPower Corp's current net income (TTM) was 171. ==> Positive ==> Score 1.

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.

SunPower Corp's current cash flow from operations (TTM) was -156. ==> 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 (Mar14)
=171.269/3826.341
=0.04476052

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=215.333/3162.717
=0.06808481

SunPower Corp's return on assets of this year was 0.04476052. SunPower Corp's return on assets of last year was 0.06808481. ==> Last year is higher ==> Score 0.

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.

SunPower Corp's current net income (TTM) was 171. SunPower Corp's current cash flow from operations (TTM) was -156. ==> -156 <= 171 ==> CFROA <= ROA ==> Score 0.

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: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=1121.139/4203.4348
=0.26671973

Gearing (Last Year: Mar14)=Long-Term Debt/Average Total Assets from Mar13 to Mar14
=423.502/3664.079
=0.11558211

SunPower Corp's gearing of this year was 0.26671973. SunPower Corp's gearing of last year was 0.11558211. ==> 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: Mar15)=Total Current Assets/Total Current Liabilities
=2061.397/836.709
=2.46369646

Current Ratio (Last Year: Mar14)=Total Current Assets/Total Current Liabilities
=2034.827/1505.118
=1.35193852

SunPower Corp's current ratio of this year was 2.46369646. SunPower Corp's current ratio of last year was 1.35193852. ==> This year's current ratio is higher. ==> Score 1.

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.

SunPower Corp's number of shares in issue this year was 132. SunPower Corp's number of shares in issue last year was 160.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=552.956/2775.714
=0.19921217

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=594.748/2564.192
=0.23194363

SunPower Corp's gross margin of this year was 0.19921217. SunPower Corp's gross margin of last year was 0.23194363. ==> Last year's gross margin is higher ==> Score 0.

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 (Mar14)
=2775.714/3826.341
=0.72542254

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=2564.192/3162.717
=0.81075607

SunPower Corp's asset turnover of this year was 0.72542254. SunPower Corp's asset turnover of last year was 0.81075607. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+0+0+0+0+1+1+0+0
=3

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

SunPower Corp has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 0110110011
Question 2 1011110111
Question 3 1100110111
Question 4 1001101110
Question 5 1110010010
Question 6 1001100001
Question 7 0001001000
Question 8 1101010111
Question 9 1010010011
F-score 7445562476

SunPower Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Question 1 0000111111
Question 2 1111110010
Question 3 1111111110
Question 4 1111100000
Question 5 0110110000
Question 6 0000001111
Question 7 0000000001
Question 8 1111111110
Question 9 0111110010
F-score 4665764463
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