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Sunoco LP (NYSE:SUN)
Piotroski F-Score
6 (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

Sunoco LP has an F-score of 6 indicating the company's financial situation is typical for a stable company.

SUN' s 10-Year Piotroski F-Score Range
Min: 4   Max: 6
Current: 6

4
6

During the past 4 years, the highest Piotroski F-Score of Sunoco LP was 6. The lowest was 4. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 9.523 + 10.132 + 9.595 + 0 = $29 Mil.
Cash Flow from Operations was 1.818 + -34.216 + 46.035 + 0 = $14 Mil.
Revenue was 1114.468 + 1216.587 + 1376.025 + 0 = $3,707 Mil.
Gross Profit was 20.049 + 22.12 + 22.203 + 0 = $64 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(385.386 + 390.084 + 454.163 + 459.353 + 1299.813) / 5 = $597.7598 Mil.
Total Assets at the begining of this year (Sep13) was $385 Mil.
Long-Term Debt was $273 Mil.
Total Current Assets was $157 Mil.
Total Current Liabilities was $135 Mil.
Net Income was 8.576 + 8.227 + 9.68 + 9.597 = $36 Mil.

Revenue was 1008.56 + 1090.417 + 1120.897 + 1166.797 = $4,387 Mil.
Gross Profit was 14.611 + 15.556 + 16.956 + 18.403 = $66 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(307.185 + 355.8 + 384.923 + 386.264 + 385.386) / 5 = $363.9116 Mil.
Total Assets at the begining of last year (Sep12) was $307 Mil.
Long-Term Debt was $184 Mil.
Total Current Assets was $133 Mil.
Total Current Liabilities was $118 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.

Sunoco LP's current net income (TTM) was 29. ==> 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.

Sunoco LP's current cash flow from operations (TTM) was 14. ==> 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 (Sep13)
=29.25/385.386
=0.07589793

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=36.08/307.185
=0.11745365

Sunoco LP's return on assets of this year was 0.07589793. Sunoco LP's return on assets of last year was 0.11745365. ==> 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.

Sunoco LP's current net income (TTM) was 29. Sunoco LP's current cash flow from operations (TTM) was 14. ==> 14 <= 29 ==> CFROA <= ROA ==> Score 0.

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
=273.03/597.7598
=0.45675537

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=184.222/363.9116
=0.50622734

Sunoco LP's gearing of this year was 0.45675537. Sunoco LP's gearing of last year was 0.50622734. ==> 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
=156.856/134.888
=1.16286104

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=133.192/118.354
=1.12536965

Sunoco LP's current ratio of this year was 1.16286104. Sunoco LP's current ratio of last year was 1.12536965. ==> 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.

Sunoco LP's number of shares in issue this year was 0. Sunoco LP's number of shares in issue last year was 10.9. ==> 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: TTM)=Gross Profit/Revenue
=64.372/3707.08
=0.01736461

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=65.526/4386.671
=0.01493752

Sunoco LP's gross margin of this year was 0.01736461. Sunoco LP's gross margin of last year was 0.01493752. ==> 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 (Sep13)
=3707.08/385.386
=9.6191351

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=4386.671/307.185
=14.28022527

Sunoco LP's asset turnover of this year was 9.6191351. Sunoco LP's asset turnover of last year was 14.28022527. ==> 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+0+1+1+1+1+0
=6

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

Sunoco LP 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.

Sunoco LP Annual Data

Dec10Dec11Dec12Dec13
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
Q9
F-score

Sunoco LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 111
Q2 011
Q3 100
Q4 000
Q5 101
Q6 111
Q7 001
Q8 111
Q9 000
F-score 0000000546
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