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Stewart Enterprises, Inc. (NAS:STEI)
Piotroski F-Score
0 (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

Stewart Enterprises, Inc. has an F-score of 6 indicating the company's financial situation is typical for a stable company.

STEI' s 10-Year Piotroski F-Score Range
Min: 0   Max: 0
Current: 0


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 (Oct13) TTM:Last Year (Oct12) TTM:
Net Income was 15.477 + 11.875 + 8.277 + 5.292 = $40.9 Mil.
Cash Flow from Operations was 11.896 + 33.151 + 23.336 + 18.591 = $87.0 Mil.
Revenue was 135.681 + 133.853 + 127.062 + 127.461 = $524.1 Mil.
Gross Profit was 32.316 + 31.967 + 23.195 + 26.132 = $113.6 Mil.
Average Total Assets from the begining of this year (Oct12)
to the end of this year (Oct13) was
(2221.685 + 2247.11 + 2297.722 + 2302.94 + 2317.639) / 5 = $2277.4192 Mil.
Total Assets at the begining of this year (Oct12) was $2,221.7 Mil.
Long-Term Debt was $241.5 Mil.
Total Current Assets was $247.4 Mil.
Total Current Liabilities was $183.4 Mil.
Net Income was 8.545 + 8.736 + 9.638 + 8.977 = $35.9 Mil.

Revenue was 124.824 + 132.598 + 129.239 + 129.436 = $516.1 Mil.
Gross Profit was 25.396 + 29.138 + 26.986 + 28.162 = $109.7 Mil.
Average Total Assets from the begining of last year (Oct11)
to the end of last year (Oct12) was
(2157.098 + 2172.805 + 2202.04 + 2213.874 + 2221.685) / 5 = $2193.5004 Mil.
Total Assets at the begining of last year (Oct11) was $2,157.1 Mil.
Long-Term Debt was $321.9 Mil.
Total Current Assets was $209.5 Mil.
Total Current Liabilities was $97.2 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.

Stewart Enterprises, Inc.'s current net income (TTM) was 40.9. ==> 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.

Stewart Enterprises, Inc.'s current cash flow from operations (TTM) was 87.0. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Oct12)
=40.921/2221.685
=0.0184189

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Oct11)
=35.896/2157.098
=0.01664088

Stewart Enterprises, Inc.'s return on assets of this year was 0.0184189. Stewart Enterprises, Inc.'s return on assets of last year was 0.01664088. ==> 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.

Stewart Enterprises, Inc.'s current net income (TTM) was 40.9. Stewart Enterprises, Inc.'s current cash flow from operations (TTM) was 87.0. ==> 87.0 > 40.9 ==> 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: Oct13)=Long-Term Debt/Average Total Assets from Oct12 to Oct13
=241.525/2277.4192
=0.10605206

Gearing (Last Year: Oct12)=Long-Term Debt/Average Total Assets from Oct11 to Oct12
=321.887/2193.5004
=0.14674581

Stewart Enterprises, Inc.'s gearing of this year was 0.10605206. Stewart Enterprises, Inc.'s gearing of last year was 0.14674581. ==> 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: Oct13)=Total Current Assets/Total Current Liabilities
=247.404/183.442
=1.34867697

Current Ratio (Last Year: Oct12)=Total Current Assets/Total Current Liabilities
=209.481/97.189
=2.15539824

Stewart Enterprises, Inc.'s current ratio of this year was 1.34867697. Stewart Enterprises, Inc.'s current ratio of last year was 2.15539824. ==> Last year's current ratio is higher ==> Score 0.

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.

Stewart Enterprises, Inc.'s number of shares in issue this year was 86.4. Stewart Enterprises, Inc.'s number of shares in issue last year was 85.3. ==> 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
=113.61/524.057
=0.2167894

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=109.682/516.097
=0.21252206

Stewart Enterprises, Inc.'s gross margin of this year was 0.2167894. Stewart Enterprises, Inc.'s gross margin of last year was 0.21252206. ==> This year's gross margin is higher. ==> Score 1.

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 (Oct12)
=524.057/2221.685
=0.23588267

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Oct11)
=516.097/2157.098
=0.23925524

Stewart Enterprises, Inc.'s asset turnover of this year was 0.23588267. Stewart Enterprises, Inc.'s asset turnover of last year was 0.23925524. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+0+1+0
=6

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

Stewart Enterprises, Inc. 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.

Stewart Enterprises, Inc. Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
Q1 1011011111
Q2 1111111111
Q3 1011011101
Q4 1111111111
Q5 1010011011
Q6 0101011110
Q7 1011110111
Q8 0010001111
Q9 1110011110
F-score 7486388887

Stewart Enterprises, Inc. Quarterly Data

Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13
Q1 1111111111
Q2 1111111111
Q3 1111001111
Q4 1111111111
Q5 1111011111
Q6 1100011100
Q7 1111111110
Q8 1100111111
Q9 1100011110
F-score 9855689986
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