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SUPERVALU Inc (NYSE:SVU)
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

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

SVU' 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 SUPERVALU 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 (Aug14) TTM:Last Year (Aug13) TTM:
Net Income was 31 + 26 + 43 + 31 = $131 Mil.
Cash Flow from Operations was -42 + 292 + 57 + 103 = $410 Mil.
Revenue was 4012 + 3953 + 5234 + 4018 = $17,217 Mil.
Gross Profit was 569 + 590 + 752 + 572 = $2,483 Mil.
Average Total Assets from the begining of this year (Aug13)
to the end of this year (Aug14) was
(4738 + 4711 + 4374 + 4354 + 4486) / 5 = $4,533 Mil.
Total Assets as of Aug13 was $4,738 Mil.
Long-Term Debt was $2,710 Mil.
Total Current Assets was $1,723 Mil.
Total Current Liabilities was $1,631 Mil.
Net Income was 16 + -1412 + 85 + 40 = $-1,271 Mil.

Revenue was 7913 + -9445 + 5158 + 3948 = $7,574 Mil.
Gross Profit was 1679 + -3430 + 712 + 577 = $-462 Mil.
Average Total Assets from the begining of last year (Aug12)
to the end of last year (Aug13) was
(11854 + 11857 + 11034 + 4691 + 4738) / 5 = $8,835 Mil.
Total Assets as of Aug12 was $11,854 Mil.
Long-Term Debt was $2,921 Mil.
Total Current Assets was $1,807 Mil.
Total Current Liabilities was $1,653 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.

SUPERVALU Inc's current net income (ttm) was 131. ==> 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.

SUPERVALU Inc's current cash flow from operations (ttm) was 410. ==> 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 (Aug13)
=131/4738
=0.0276488

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Aug12)
=-1271/11854
=-0.10722119

SUPERVALU Inc's return on assets of this year was 0.0276488. SUPERVALU Inc's return on assets of last year was -0.10722119. ==> 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.

SUPERVALU Inc's current net income (ttm) was 131. SUPERVALU Inc's current cash flow from operations (ttm) was 410. ==> 410 > 131 ==> 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: Aug14)=Long-Term Debt/Average Total Assets from Aug13 to Aug14
=2710/4532.6
=0.59789084

Gearing (Last Year: Aug13)=Long-Term Debt/Average Total Assets from Aug12 to Aug13
=2921/8834.8
=0.33062435

SUPERVALU Inc's gearing of this year was 0.59789084. SUPERVALU Inc's gearing of last year was 0.33062435. ==> Last year is lower than this year ==> Score 0.

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: Aug14)=Total Current Assets/Total Current Liabilities
=1723/1631
=1.05640711

Current Ratio (Last Year: Aug13)=Total Current Assets/Total Current Liabilities
=1807/1653
=1.09316394

SUPERVALU Inc's current ratio of this year was 1.05640711. SUPERVALU Inc's current ratio of last year was 1.09316394. ==> 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.

SUPERVALU Inc's number of shares in issue this year was 264. SUPERVALU Inc's number of shares in issue last year was 261. ==> 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
=2483/17217
=0.14421792

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=-462/7574
=-0.06099815

SUPERVALU Inc's gross margin of this year was 0.14421792. SUPERVALU Inc's gross margin of last year was -0.06099815. ==> 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 (Aug13)
=17217/4738
=3.63381173

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Aug12)
=7574/11854
=0.63894044

SUPERVALU Inc's asset turnover of this year was 3.63381173. SUPERVALU Inc's asset turnover of last year was 0.63894044. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

SUPERVALU 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, 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.

SUPERVALU Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
Q1 1111010001
Q2 1111111111
Q3 1010010101
Q4 1111111110
Q5 1101000010
Q6 1100101001
Q7 0000101110
Q8 1011000001
Q9 0010110101
F-score 7565554546

SUPERVALU Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
Q1 0000000111
Q2 1111111111
Q3 0010000111
Q4 1111111011
Q5 0001111000
Q6 1110111110
Q7 0101000000
Q8 0000000111
Q9 0000000111
F-score 3444444676
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