Switch to:
Seagate Technology PLC (NAS:STX)
Piotroski F-Score
4 (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

Seagate Technology PLC has an F-score of 4 indicating the company's financial situation is typical for a stable company.

STX' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 4

4
9

During the past 13 years, the highest Piotroski F-Score of Seagate Technology PLC was 9. The lowest was 4. 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 (Jun16) TTM:Last Year (Jun15) TTM:
Net Income was 34 + 165 + -21 + 70 = $248 Mil.
Cash Flow from Operations was 824 + 382 + 205 + 269 = $1,680 Mil.
Revenue was 2925 + 2986 + 2595 + 2654 = $11,160 Mil.
Gross Profit was 689 + 741 + 524 + 662 = $2,616 Mil.
Average Total Assets from the begining of this year (Jun15)
to the end of this year (Jun16) was
(9845 + 9079 + 8796 + 8374 + 8252) / 5 = $8869.2 Mil.
Total Assets at the begining of this year (Jun15) was $9,845 Mil.
Long-Term Debt was $4,130 Mil.
Total Current Assets was $3,533 Mil.
Total Current Liabilities was $2,249 Mil.
Net Income was 381 + 933 + 291 + 137 = $1,742 Mil.

Revenue was 3785 + 3696 + 3330 + 2928 = $13,739 Mil.
Gross Profit was 1051 + 1027 + 955 + 776 = $3,809 Mil.
Average Total Assets from the begining of last year (Jun14)
to the end of last year (Jun15) was
(9492 + 9765 + 10814 + 10036 + 9845) / 5 = $9990.4 Mil.
Total Assets at the begining of last year (Jun14) was $9,492 Mil.
Long-Term Debt was $4,155 Mil.
Total Current Assets was $5,568 Mil.
Total Current Liabilities was $2,343 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.

Seagate Technology PLC's current net income (TTM) was 248. ==> 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.

Seagate Technology PLC's current cash flow from operations (TTM) was 1,680. ==> 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.

Seagate Technology PLC's return on assets of this year was 0.02519045. Seagate Technology PLC's return on assets of last year was 0.18352297. ==> Last year is higher ==> Score 0.

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.

Seagate Technology PLC's current net income (TTM) was 248. Seagate Technology PLC's current cash flow from operations (TTM) was 1,680. ==> 1,680 > 248 ==> 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: Jun16)=Long-Term Debt/Average Total Assets from Jun15 to Jun16
=4130/8869.2
=0.46565643

Gearing (Last Year: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=4155/9990.4
=0.41589926

Seagate Technology PLC's gearing of this year was 0.46565643. Seagate Technology PLC's gearing of last year was 0.41589926. ==> 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: Jun16)=Total Current Assets/Total Current Liabilities
=3533/2249
=1.57092041

Current Ratio (Last Year: Jun15)=Total Current Assets/Total Current Liabilities
=5568/2343
=2.37644046

Seagate Technology PLC's current ratio of this year was 1.57092041. Seagate Technology PLC's current ratio of last year was 2.37644046. ==> Last year's current ratio is higher ==> Score 0.

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.

Seagate Technology PLC's number of shares in issue this year was 302. Seagate Technology PLC's number of shares in issue last year was 331. ==> 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
=2616/11160
=0.2344086

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3809/13739
=0.27723997

Seagate Technology PLC's gross margin of this year was 0.2344086. Seagate Technology PLC's gross margin of last year was 0.27723997. ==> Last year's gross margin is higher ==> Score 0.

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 (Jun15)
=11160/9845
=1.13357034

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=13739/9492
=1.44742941

Seagate Technology PLC's asset turnover of this year was 1.13357034. Seagate Technology PLC's asset turnover of last year was 1.44742941. ==> 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+0+1+0+0+1+0+0
=4

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

Seagate Technology PLC has an F-score of 4 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.

Seagate Technology PLC Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Question 1 1101111111
Question 2 1111111111
Question 3 0101010010
Question 4 1111111111
Question 5 0100011010
Question 6 1011111100
Question 7 0110111111
Question 8 0101010100
Question 9 0101010100
F-score 4847596764

Seagate Technology PLC Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Question 1 1111111111
Question 2 1111111111
Question 3 0001110000
Question 4 1111111111
Question 5 0000110000
Question 6 1101000000
Question 7 1111111111
Question 8 0111100000
Question 9 1110100000
F-score 6767864444
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)
FEEDBACK