Switch to:
STMicroelectronics NV (NYSE:STM)
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

STMicroelectronics NV has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

STM' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 7

2
9

During the past 13 years, the highest Piotroski F-Score of STMicroelectronics NV was 9. 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 (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was 72 + 43 + 0 + 35 = $150 Mil.
Cash Flow from Operations was 89 + 311 + 149 + 391 = $940 Mil.
Revenue was 1886 + 1829 + 0 + 1760 = $5,475 Mil.
Gross Profit was 646 + 619 + 0 + 595 = $1,860 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(9986 + 9411 + 9008 + 8712 + 9836) / 5 = $9390.6 Mil.
Total Assets at the begining of this year (Jun14) was $9,986 Mil.
Long-Term Debt was $1,584 Mil.
Total Current Assets was $4,968 Mil.
Total Current Liabilities was $2,081 Mil.
Net Income was -142 + -36 + -24 + 38 = $-164 Mil.

Revenue was 2013 + 2015 + 1825 + 1864 = $7,717 Mil.
Gross Profit was 652 + 662 + 599 + 634 = $2,547 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(9643 + 9324 + 9173 + 9017 + 9986) / 5 = $9428.6 Mil.
Total Assets at the begining of last year (Jun13) was $9,643 Mil.
Long-Term Debt was $905 Mil.
Total Current Assets was $4,622 Mil.
Total Current Liabilities was $1,961 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.

STMicroelectronics NV's current net income (TTM) was 150. ==> 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.

STMicroelectronics NV's current cash flow from operations (TTM) was 940. ==> Positive ==> Score 1.

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.

STMicroelectronics NV's return on assets of this year was 0.01502103. STMicroelectronics NV's return on assets of last year was -0.01700716. ==> This year is higher. ==> Score 1.

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.

STMicroelectronics NV's current net income (TTM) was 150. STMicroelectronics NV's current cash flow from operations (TTM) was 940. ==> 940 > 150 ==> CFROA > ROA ==> Score 1.

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: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=1584/9390.6
=0.16867932

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=905/9428.6
=0.09598456

STMicroelectronics NV's gearing of this year was 0.16867932. STMicroelectronics NV's gearing of last year was 0.09598456. ==> 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: Jun15)=Total Current Assets/Total Current Liabilities
=4968/2081
=2.38731379

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=4622/1961
=2.35696073

STMicroelectronics NV's current ratio of this year was 2.38731379. STMicroelectronics NV's current ratio of last year was 2.35696073. ==> 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.

STMicroelectronics NV's number of shares in issue this year was 880.2. STMicroelectronics NV's number of shares in issue last year was 895.4. ==> 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
=1860/5475
=0.33972603

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2547/7717
=0.33005054

STMicroelectronics NV's gross margin of this year was 0.33972603. STMicroelectronics NV's gross margin of last year was 0.33005054. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun14)
=5475/9986
=0.54826757

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=7717/9643
=0.80026963

STMicroelectronics NV's asset turnover of this year was 0.54826757. STMicroelectronics NV's asset turnover of last year was 0.80026963. ==> 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+1+1+1+0+1+1+1+0
=7

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

STMicroelectronics NV has an F-score of 7. 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.

STMicroelectronics NV Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1100011001
Question 2 1111111111
Question 3 0100010011
Question 4 1111111111
Question 5 1000111100
Question 6 0110101011
Question 7 1011001101
Question 8 0101010001
Question 9 0100010011
F-score 5744476458

STMicroelectronics NV Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 0000001111
Question 2 1111111111
Question 3 0001111111
Question 4 1111111111
Question 5 0000000000
Question 6 1111111111
Question 7 0000000111
Question 8 0000011111
Question 9 1111111100
F-score 4445567877
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)

GuruFocus Premium Plus Membership

FEEDBACK