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Stoneridge Inc (NYSE:SRI)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Stoneridge Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

SRI' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 7

3
9

During the past 13 years, the highest Piotroski F-Score of Stoneridge Inc was 9. 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 1.468 + 0.204 + 5.047 + 5.757 = $12.5 Mil.
Cash Flow from Operations was -16.191 + 21.24 + 19.201 + 3.837 = $28.1 Mil.
Revenue was 236.389 + 235.824 + 233.511 + 242.785 = $948.5 Mil.
Gross Profit was 54.789 + 53.553 + 53.519 + 60.22 = $222.1 Mil.
Total Assets at the begining of this year (Mar13) was $624.9 Mil.
Total Assets was $613.0 Mil.
Long-Term Debt was $184.1 Mil.
Total Current Assets was $362.4 Mil.
Total Current Liabilities was $171.7 Mil.
Net Income was 4.123 + 2.621 + 0.419 + -3.558 = $3.6 Mil.

Revenue was 235.71 + 222.725 + 219.256 + 234.265 = $912.0 Mil.
Gross Profit was 58.729 + 54.609 + 51.238 + 53.659 = $218.2 Mil.
Total Assets at the begining of last year (Mar12) was $691.9 Mil.
Total Assets was $624.9 Mil.
Long-Term Debt was $193.5 Mil.
Total Current Assets was $343.5 Mil.
Total Current Liabilities was $165.5 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.

Stoneridge Inc's current net income was 12.5. ==> 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.

Stoneridge Inc's current cash flow from operations was 28.1. ==> 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)
=12.476/624.872
=0.01996569

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=3.605/691.898
=0.00521031

Stoneridge Inc's return on assets of this year was 0.01996569. Stoneridge Inc's return on assets of last year was 0.00521031. ==> 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.

Stoneridge Inc's current net income was 12.5. Stoneridge Inc's current cash flow from operations was 28.1. ==> 28.1 > 12.5 ==> 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)=Long-Term Debt/Total Assets
=184.077/612.956
=0.3003103

Gearing (Last Year)=Long-Term Debt/Total Assets
=193.531/624.872
=0.30971303

Stoneridge Inc's gearing of this year was 0.3003103. Stoneridge Inc's gearing of last year was 0.30971303. ==> 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
=362.398/171.709
=2.11053585

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=343.497/165.538
=2.07503413

Stoneridge Inc's current ratio of this year was 2.11053585. Stoneridge Inc's current ratio of last year was 2.07503413. ==> 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.

Stoneridge Inc's number of shares in issue this year was 27.4. Stoneridge Inc's number of shares in issue last year was 27.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=222.081/948.509
=0.23413695

Gross Margin (Last Year)=Gross Profit/Revenue
=218.235/911.956
=0.23930431

Stoneridge Inc's gross margin of this year was 0.23413695. Stoneridge Inc's gross margin of last year was 0.23930431. ==> Last year's gross margin is higher ==> Score 0.

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)
=948.509/624.872
=1.51792527

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=911.956/691.898
=1.31804977

Stoneridge Inc's asset turnover of this year was 1.51792527. Stoneridge Inc's asset turnover of last year was 1.31804977. ==> 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+1+1+1+0+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Stoneridge Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


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.

Stoneridge Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0111001111
Q2 1111111111
Q3 0111011101
Q4 1111111011
Q5 0011001100
Q6 1111100011
Q7 1000100000
Q8 0011001010
Q9 1110001101
F-score 5687437556

Stoneridge Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 1111000011
Q4 0001111111
Q5 1111000001
Q6 0001111111
Q7 0000000010
Q8 0011111100
Q9 1111000011
F-score 5568555577
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