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SUPERVALU Inc (NYSE:SVU)
Piotroski F-Score
5 (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

SUPERVALU Inc has an F-score of 5 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: 5

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 (Nov14) TTM:Last Year (Nov13) TTM:
Net Income was 26 + 43 + 31 + 79 = $179 Mil.
Cash Flow from Operations was 283 + 57 + 103 + -54 = $389 Mil.
Revenue was 3955 + 5234 + 4018 + 4204 = $17,411 Mil.
Gross Profit was 592 + 752 + 572 + 593 = $2,509 Mil.
Average Total Assets from the begining of this year (Nov13)
to the end of this year (Nov14) was
(4711 + 4374 + 4354 + 4486 + 5078) / 5 = $4600.6 Mil.
Total Assets at the begining of this year (Nov13) was $4,711 Mil.
Long-Term Debt was $2,839 Mil.
Total Current Assets was $2,241 Mil.
Total Current Liabilities was $1,964 Mil.
Net Income was -1412 + 85 + 40 + 31 = $-1,256 Mil.

Revenue was 3899 + 5241 + 3947 + 4012 = $17,099 Mil.
Gross Profit was 557 + 795 + 576 + 569 = $2,497 Mil.
Average Total Assets from the begining of last year (Nov12)
to the end of last year (Nov13) was
(11857 + 11034 + 4691 + 4738 + 4711) / 5 = $7406.2 Mil.
Total Assets at the begining of last year (Nov12) was $11,857 Mil.
Long-Term Debt was $2,957 Mil.
Total Current Assets was $1,845 Mil.
Total Current Liabilities was $1,573 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.

SUPERVALU Inc's current net income (TTM) was 179. ==> 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.

SUPERVALU Inc's current cash flow from operations (TTM) was 389. ==> 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.

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Nov12)
=-1256/11857
=-0.10592899

SUPERVALU Inc's return on assets of this year was 0.03799618. SUPERVALU Inc's return on assets of last year was -0.10592899. ==> 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.

SUPERVALU Inc's current net income (TTM) was 179. SUPERVALU Inc's current cash flow from operations (TTM) was 389. ==> 389 > 179 ==> 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: Nov14)=Long-Term Debt/Average Total Assets from Nov13 to Nov14
=2839/4600.6
=0.61709342

Gearing (Last Year: Nov13)=Long-Term Debt/Average Total Assets from Nov12 to Nov13
=2957/7406.2
=0.39926008

SUPERVALU Inc's gearing of this year was 0.61709342. SUPERVALU Inc's gearing of last year was 0.39926008. ==> 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: Nov14)=Total Current Assets/Total Current Liabilities
=2241/1964
=1.1410387

Current Ratio (Last Year: Nov13)=Total Current Assets/Total Current Liabilities
=1845/1573
=1.17291799

SUPERVALU Inc's current ratio of this year was 1.1410387. SUPERVALU Inc's current ratio of last year was 1.17291799. ==> 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.

SUPERVALU Inc's number of shares in issue this year was 265. SUPERVALU Inc's number of shares in issue last year was 262. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=2509/17411
=0.1441043

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2497/17099
=0.14603193

SUPERVALU Inc's gross margin of this year was 0.1441043. SUPERVALU Inc's gross margin of last year was 0.14603193. ==> 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 (Nov13)
=17411/4711
=3.6958183

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Nov12)
=17099/11857
=1.44210171

SUPERVALU Inc's asset turnover of this year was 3.6958183. SUPERVALU Inc's asset turnover of last year was 1.44210171. ==> This year's asset turnover is higher. ==> Score 1.

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+0+0+0+1
=5

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

SUPERVALU 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


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
Question 1 1111010001
Question 2 1111111111
Question 3 1010010101
Question 4 1111111110
Question 5 1101000100
Question 6 1100101001
Question 7 0000101110
Question 8 1011000101
Question 9 0010110111
F-score 7565554746

SUPERVALU Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
Question 1 0000001111
Question 2 1111111111
Question 3 0100001111
Question 4 1111110111
Question 5 0001110000
Question 6 1101111100
Question 7 1010000000
Question 8 0001111110
Question 9 0011111111
F-score 4446666765
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