Switch to:
SUPERVALU Inc (NYSE:SVU)
Piotroski F-Score
5 (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 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 (Nov13) TTM:Last Year (Nov12) TTM:
Net Income was 31 + 40 + 85 + -1412 = $-1,256 Mil.
Cash Flow from Operations was -42 + -42 + -189 + 541 = $268 Mil.
Revenue was 4012 + 3948 + 5158 + 3857 = $16,975 Mil.
Gross Profit was 569 + 577 + 712 + 515 = $2,373 Mil.
Total Assets at the begining of this year (Nov12) was $11,857 Mil.
Total Assets was $4,711 Mil.
Long-Term Debt was $2,957 Mil.
Total Current Assets was $1,845 Mil.
Total Current Liabilities was $1,573 Mil.
Net Income was 16 + -111 + 41 + -424 = $-478 Mil.

Revenue was 4051 + 3939 + 5237 + -10533 = $2,694 Mil.
Gross Profit was 530 + 529 + 707 + -3731 = $-1,965 Mil.
Total Assets at the begining of last year (Nov11) was $12,785 Mil.
Total Assets was $11,857 Mil.
Long-Term Debt was $6,180 Mil.
Total Current Assets was $3,465 Mil.
Total Current Liabilities was $3,274 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.

SUPERVALU Inc's current net income was -1,256. ==> Negative ==> Score 0.

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.

SUPERVALU Inc's current cash flow from operations was 268. ==> 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/Total Assets at the beginning of this year (Nov12)
=-1256/11857
=-0.10592899

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Nov11)
=-478/12785
=-0.03738756

SUPERVALU Inc's return on assets of this year was -0.10592899. SUPERVALU Inc's return on assets of last year was -0.03738756. ==> 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.

SUPERVALU Inc's current net income was -1,256. SUPERVALU Inc's current cash flow from operations was 268. ==> 268 > -1,256 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=2957/4711
=0.6276799

Gearing (Last Year)=Long-Term Debt/Total Assets
=6180/11857
=0.5212111

SUPERVALU Inc's gearing of this year was 0.6276799. SUPERVALU Inc's gearing of last year was 0.5212111. ==> Last year is lower ==> 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)=Total Current Assets/Total Current Liabilities
=1845/1573
=1.17291799

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=3465/3274
=1.05833842

SUPERVALU Inc's current ratio of this year was 1.17291799. SUPERVALU Inc's current ratio of last year was 1.05833842. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

SUPERVALU Inc's number of shares in issue this year was 262. SUPERVALU Inc's number of shares in issue last year was 214. ==> There is more 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)=Gross Profit/Revenue
=2373/16975
=0.13979381

Gross Margin (Last Year)=Gross Profit/Revenue
=-1965/2694
=-0.72939866

SUPERVALU Inc's gross margin of this year was 0.13979381. SUPERVALU Inc's gross margin of last year was -0.72939866. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Nov12)
=16975/11857
=1.43164375

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Nov11)
=2694/12785
=0.21071568

SUPERVALU Inc's asset turnover of this year was 1.43164375. SUPERVALU Inc's asset turnover of last year was 0.21071568. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

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

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13
Q1 1111101000
Q2 1111111111
Q3 1101001010
Q4 1111111111
Q5 1110101010
Q6 1110010100
Q7 0000010100
Q8 1101100010
Q9 1001011011
F-score 8756556463

SUPERVALU Inc Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
Q1 1000000000
Q2 1111111111
Q3 1110010000
Q4 1111111111
Q5 1010000000
Q6 0101110111
Q7 0010100000
Q8 0110000111
Q9 0110001111
F-score 5673443555
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)
Free 7-day Trial
FEEDBACK
Hide