Switch to:
Sempra Energy (NYSE:SRE)
Piotroski F-Score
6 (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

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

SRE' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 6

3
8

During the past 13 years, the highest Piotroski F-Score of Sempra Energy was 8. The lowest was 3. And the median was 6.


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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 282 + 247 + 270 + 348 = $1,147 Mil.
Cash Flow from Operations was 454 + 904 + 130 + 627 = $2,115 Mil.
Revenue was 2705 + 2795 + 2678 + 2815 = $10,993 Mil.
Gross Profit was 1626 + 1489 + 1544 + 1637 = $6,296 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(36901 + 37244 + 37484 + 38307 + 38982) / 5 = $37783.6 Mil.
Total Assets at the begining of this year (Sep13) was $36,901 Mil.
Long-Term Debt was $12,437 Mil.
Total Current Assets was $4,414 Mil.
Total Current Liabilities was $4,292 Mil.
Net Income was 294 + 180 + 246 + 301 = $1,021 Mil.

Revenue was 2668 + 2650 + 2651 + 2551 = $10,520 Mil.
Gross Profit was 1557 + 1488 + 1666 + 1586 = $6,297 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(35390 + 36499 + 37273 + 37020 + 36901) / 5 = $36616.6 Mil.
Total Assets at the begining of last year (Sep12) was $35,390 Mil.
Long-Term Debt was $10,478 Mil.
Total Current Assets was $3,712 Mil.
Total Current Liabilities was $4,530 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.

Sempra Energy's current net income (TTM) was 1,147. ==> 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.

Sempra Energy's current cash flow from operations (TTM) was 2,115. ==> 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.

Sempra Energy's return on assets of this year was 0.03108317. Sempra Energy's return on assets of last year was 0.02884996. ==> 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.

Sempra Energy's current net income (TTM) was 1,147. Sempra Energy's current cash flow from operations (TTM) was 2,115. ==> 2,115 > 1,147 ==> CFROA > ROA ==> Score 1.

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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=12437/37783.6
=0.32916398

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=10478/36616.6
=0.28615437

Sempra Energy's gearing of this year was 0.32916398. Sempra Energy's gearing of last year was 0.28615437. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=4414/4292
=1.02842498

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=3712/4530
=0.81942605

Sempra Energy's current ratio of this year was 1.02842498. Sempra Energy's current ratio of last year was 0.81942605. ==> 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.

Sempra Energy's number of shares in issue this year was 250.8. Sempra Energy's number of shares in issue last year was 249.3. ==> 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: TTM)=Gross Profit/Revenue
=6296/10993
=0.5727281

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=6297/10520
=0.59857414

Sempra Energy's gross margin of this year was 0.5727281. Sempra Energy's gross margin of last year was 0.59857414. ==> Last year's gross margin is higher ==> Score 0.

Q9. 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 (Sep13)
=10993/36901
=0.29790521

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=10520/35390
=0.29725911

Sempra Energy's asset turnover of this year was 0.29790521. Sempra Energy's asset turnover of last year was 0.29725911. ==> 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+1+0+1+0+0+1
=6

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

Sempra Energy 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.

Sempra Energy Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1010110101
Q4 1011111111
Q5 0110000001
Q6 1110001011
Q7 0000110100
Q8 1100010110
Q9 1100001101
F-score 7663565757

Sempra Energy Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0000111111
Q4 1111111111
Q5 1001111000
Q6 0011111111
Q7 0000001000
Q8 1111000000
Q9 0000111001
F-score 5456778556
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)
Free 7-day Trial
FEEDBACK