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

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: 4   Max: 8
Current: 6

4
8

During the past 13 years, the highest Piotroski F-Score of SUPERVALU Inc was 8. 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 (Feb15) TTM:Last Year (Feb14) TTM:
Net Income was 43 + 31 + 79 + 39 = $192 Mil.
Cash Flow from Operations was 57 + 103 + -54 + 302 = $408 Mil.
Revenue was 5234 + 4018 + 4204 + 4364 = $17,820 Mil.
Gross Profit was 752 + 572 + 593 + 661 = $2,578 Mil.
Average Total Assets from the begining of this year (Feb14)
to the end of this year (Feb15) was
(4374 + 4354 + 4486 + 5078 + 4485) / 5 = $4555.4 Mil.
Total Assets at the begining of this year (Feb14) was $4,374 Mil.
Long-Term Debt was $2,693 Mil.
Total Current Assets was $1,700 Mil.
Total Current Liabilities was $1,533 Mil.
Net Income was 85 + 40 + 31 + 26 = $182 Mil.

Revenue was 5241 + 3947 + 4012 + 3953 = $17,153 Mil.
Gross Profit was 795 + 576 + 569 + 590 = $2,530 Mil.
Average Total Assets from the begining of last year (Feb13)
to the end of last year (Feb14) was
(11034 + 4691 + 4738 + 4711 + 4374) / 5 = $5909.6 Mil.
Total Assets at the begining of last year (Feb13) was $11,034 Mil.
Long-Term Debt was $2,732 Mil.
Total Current Assets was $1,543 Mil.
Total Current Liabilities was $1,491 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 192. ==> 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 408. ==> 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.

SUPERVALU Inc's return on assets of this year was 0.04389575. SUPERVALU Inc's return on assets of last year was 0.01649447. ==> 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 192. SUPERVALU Inc's current cash flow from operations (TTM) was 408. ==> 408 > 192 ==> 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: Feb15)=Long-Term Debt/Average Total Assets from Feb14 to Feb15
=2693/4555.4
=0.59116653

Gearing (Last Year: Feb14)=Long-Term Debt/Average Total Assets from Feb13 to Feb14
=2732/5909.6
=0.46229863

SUPERVALU Inc's gearing of this year was 0.59116653. SUPERVALU Inc's gearing of last year was 0.46229863. ==> 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: Feb15)=Total Current Assets/Total Current Liabilities
=1700/1533
=1.10893673

Current Ratio (Last Year: Feb14)=Total Current Assets/Total Current Liabilities
=1543/1491
=1.03487592

SUPERVALU Inc's current ratio of this year was 1.10893673. SUPERVALU Inc's current ratio of last year was 1.03487592. ==> This year's current ratio is higher. ==> Score 1.

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 267. 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

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
=2578/17820
=0.14466891

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2530/17153
=0.14749606

SUPERVALU Inc's gross margin of this year was 0.14466891. SUPERVALU Inc's gross margin of last year was 0.14749606. ==> 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 (Feb14)
=17820/4374
=4.07407407

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Feb13)
=17153/11034
=1.55455864

SUPERVALU Inc's asset turnover of this year was 4.07407407. SUPERVALU Inc's asset turnover of last year was 1.55455864. ==> 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+1+0+0+1
=6

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

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


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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
Question 1 1110100011
Question 2 1111111111
Question 3 0100101011
Question 4 1111111101
Question 5 1010001000
Question 6 1001010011
Question 7 0001011100
Question 8 0110001010
Question 9 0101101111
F-score 5655547466

SUPERVALU Inc Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
Question 1 0000011111
Question 2 1111111111
Question 3 1000011111
Question 4 1111101111
Question 5 0011100000
Question 6 1011111001
Question 7 0100000000
Question 8 0011111100
Question 9 0111111111
F-score 4466667656
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