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

Warning Sign:

Piotroski F-Score of 2 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 2. It is a bad or low score, which usually implies poor business operation.

SPWR' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 7
Current: 2

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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was -9.581 + 6.509 + -56.326 + -127.621 = $-187 Mil.
Cash Flow from Operations was -113.408 + -212.033 + -103.919 + -296.871 = $-726 Mil.
Revenue was 440.871 + 381.02 + 380.218 + 374.364 = $1,576 Mil.
Gross Profit was 90.818 + 70.881 + 62.644 + 20.303 = $245 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(4345.582 + 4103.141 + 4348.523 + 4394.325 + 4856.993) / 5 = $4409.7128 Mil.
Total Assets at the begining of this year (Dec14) was $4,346 Mil.
Long-Term Debt was $1,590 Mil.
Total Current Assets was $2,515 Mil.
Total Current Liabilities was $999 Mil.
Net Income was 65.044 + 14.102 + 32.033 + 134.715 = $246 Mil.

Revenue was 692.422 + 507.871 + 662.734 + 1164.238 = $3,027 Mil.
Gross Profit was 162.989 + 94.145 + 108.514 + 259.479 = $625 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(3898.69 + 3826.341 + 4321.972 + 4408.538 + 4345.582) / 5 = $4160.2246 Mil.
Total Assets at the begining of last year (Dec13) was $3,899 Mil.
Long-Term Debt was $907 Mil.
Total Current Assets was $2,403 Mil.
Total Current Liabilities was $1,130 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 -187. ==> 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.

SunPower Corp's current cash flow from operations (TTM) was -726. ==> 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 (Dec14)
=-187.019/4345.582
=-0.04303658

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=245.894/3898.69
=0.06307093

SunPower Corp's return on assets of this year was -0.04303658. SunPower Corp's return on assets of last year was 0.06307093. ==> 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 -187. SunPower Corp's current cash flow from operations (TTM) was -726. ==> -726 <= -187 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=1589.908/4409.7128
=0.36054684

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=907.136/4160.2246
=0.21804977

SunPower Corp's gearing of this year was 0.36054684. SunPower Corp's gearing of last year was 0.21804977. ==> 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: Dec15)=Total Current Assets/Total Current Liabilities
=2514.52/998.602
=2.51804022

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=2402.847/1129.611
=2.12714554

SunPower Corp's current ratio of this year was 2.51804022. SunPower Corp's current ratio of last year was 2.12714554. ==> 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 134.9. SunPower Corp's number of shares in issue last year was 162.8. ==> 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
=244.646/1576.473
=0.15518566

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=625.127/3027.265
=0.20649894

SunPower Corp's gross margin of this year was 0.15518566. SunPower Corp's gross margin of last year was 0.20649894. ==> 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 (Dec14)
=1576.473/4345.582
=0.36277603

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=3027.265/3898.69
=0.77648261

SunPower Corp's asset turnover of this year was 0.36277603. SunPower Corp's asset turnover of last year was 0.77648261. ==> 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
=0+0+0+0+0+1+1+0+0
=2

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

SunPower Corp has an F-score of 2. 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 101100110
Question 2 111101110
Question 3 001101110
Question 4 011011100
Question 5 100100100
Question 6 011000011
Question 7 010010001
Question 8 010101110
Question 9 100100110
F-score 455624762

SunPower Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 0111111110
Question 2 1110010000
Question 3 1111110000
Question 4 1100000000
Question 5 0110000000
Question 6 0001111111
Question 7 0000001011
Question 8 1111110010
Question 9 1110010000
F-score 5764463242
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