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Stantec Inc (NYSE:STN)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

Stantec Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

STN' 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 Stantec Inc 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 32.5968921389 + 30.5122838944 + 41.2561691033 + 43.3401712451 = $148 Mil.
Cash Flow from Operations was 110.3976234 + -3.29845313922 + 17.3591582084 + 86.0524438102 = $211 Mil.
Revenue was 525.880255941 + 522.195632393 + 590.202998417 + 601.752586514 = $2,240 Mil.
Gross Profit was 232.753199269 + 238.064604186 + 270.064251793 + 265.582411702 = $1,006 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(1569.59073359 + 1524.84277879 + 1622.6533212 + 1753.14088835 + 1735.62343917) / 5 = $1,641 Mil.
Total Assets as of Sep13 was $1,570 Mil.
Long-Term Debt was $213 Mil.
Total Current Assets was $725 Mil.
Total Current Liabilities was $430 Mil.
Net Income was 31.3971774194 + 27.9165848871 + 34.7413461538 + 44.3648648649 = $138 Mil.

Revenue was 712.260080645 + 503.637880275 + 544.926923077 + 560.971042471 = $2,322 Mil.
Gross Profit was 220.768145161 + 226.032384691 + 244.714423077 + 253.852316602 = $945 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(1452.12462006 + 1476.04334677 + 1472.83807655 + 1501.27980769 + 1569.59073359) / 5 = $1,494 Mil.
Total Assets as of Sep12 was $1,452 Mil.
Long-Term Debt was $202 Mil.
Total Current Assets was $688 Mil.
Total Current Liabilities was $394 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Stantec Inc's current net income (ttm) was 148. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Stantec Inc's current cash flow from operations (ttm) was 211. ==> 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)/Beginning of This Year Total Assets (Sep13)
=147.705516382/1569.59073359
=0.09410448

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=138.419973325/1452.12462006
=0.09532238

Stantec Inc's return on assets of this year was 0.09410448. Stantec Inc's return on assets of last year was 0.09532238. ==> Last year is higher ==> Score 0.

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.

Stantec Inc's current net income (ttm) was 148. Stantec Inc's current cash flow from operations (ttm) was 211. ==> 211 > 148 ==> 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
=213.415090974/1641.17023222
=0.13003836

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=202.181467181/1494.37531693
=0.13529497

Stantec Inc's gearing of this year was 0.13003836. Stantec Inc's gearing of last year was 0.13529497. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=725.086514449/429.541562611
=1.68804739

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=687.932432432/394.401544402
=1.74424376

Stantec Inc's current ratio of this year was 1.68804739. Stantec Inc's current ratio of last year was 1.74424376. ==> 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.

Stantec Inc's number of shares in issue this year was 94.6. Stantec Inc's number of shares in issue last year was 93.4. ==> 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
=1006.46446695/2240.03147327
=0.44930818

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=945.367269531/2321.79592647
=0.4071707

Stantec Inc's gross margin of this year was 0.44930818. Stantec Inc's gross margin of last year was 0.4071707. ==> 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 begining of the year total assets) 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)/Beginning of This Year Total Assets (Sep13)
=2240.03147327/1569.59073359
=1.42714367

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=2321.79592647/1452.12462006
=1.59889578

Stantec Inc's asset turnover of this year was 1.42714367. Stantec Inc's asset turnover of last year was 1.59889578. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+0+0+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Stantec Inc has an F-score of 5 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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Stantec Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0101011010
Q4 1111111111
Q5 1010010101
Q6 1100101111
Q7 0000110100
Q8 0010001010
Q9 0101010110
F-score 5655576775

Stantec Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0011111110
Q4 1111111111
Q5 1001111101
Q6 1111111110
Q7 1000000000
Q8 0000001111
Q9 0011110000
F-score 7567778766
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