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SUPERVALU Inc (NYSE:SVU)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

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 7. It is a good or high score, which usually indicates a very healthy situation.

SVU' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 7

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 (May15) TTM:Last Year (May14) TTM:
Net Income was 31 + 79 + 39 + 61 = $210 Mil.
Cash Flow from Operations was 103 + -54 + 302 + 112 = $463 Mil.
Revenue was 4018 + 4204 + 4364 + 5407 = $17,993 Mil.
Gross Profit was 572 + 593 + 661 + 810 = $2,636 Mil.
Average Total Assets from the begining of this year (May14)
to the end of this year (May15) was
(4354 + 4486 + 5078 + 4485 + 4491) / 5 = $4578.8 Mil.
Total Assets at the begining of this year (May14) was $4,354 Mil.
Long-Term Debt was $2,407 Mil.
Total Current Assets was $1,726 Mil.
Total Current Liabilities was $1,803 Mil.
Net Income was 40 + 31 + 26 + 43 = $140 Mil.

Revenue was 3947 + 4012 + 3953 + 5264 = $17,176 Mil.
Gross Profit was 576 + 569 + 590 + 755 = $2,490 Mil.
Average Total Assets from the begining of last year (May13)
to the end of last year (May14) was
(4691 + 4738 + 4711 + 4374 + 4354) / 5 = $4573.6 Mil.
Total Assets at the begining of last year (May13) was $4,691 Mil.
Long-Term Debt was $2,719 Mil.
Total Current Assets was $1,613 Mil.
Total Current Liabilities was $1,507 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 210. ==> 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 463. ==> 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 0.04823151. SUPERVALU Inc's return on assets of last year was 0.02984438. ==> 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 210. SUPERVALU Inc's current cash flow from operations (TTM) was 463. ==> 463 > 210 ==> 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: May15)=Long-Term Debt/Average Total Assets from May14 to May15
=2407/4578.8
=0.52568359

Gearing (Last Year: May14)=Long-Term Debt/Average Total Assets from May13 to May14
=2719/4573.6
=0.59449886

SUPERVALU Inc's gearing of this year was 0.52568359. SUPERVALU Inc's gearing of last year was 0.59449886. ==> This year is lower or equal to last year. ==> Score 1.

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: May15)=Total Current Assets/Total Current Liabilities
=1726/1803
=0.9572934

Current Ratio (Last Year: May14)=Total Current Assets/Total Current Liabilities
=1613/1507
=1.07033842

SUPERVALU Inc's current ratio of this year was 0.9572934. SUPERVALU Inc's current ratio of last year was 1.07033842. ==> 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 268. 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
=2636/17993
=0.14650142

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2490/17176
=0.14496973

SUPERVALU Inc's gross margin of this year was 0.14650142. SUPERVALU Inc's gross margin of last year was 0.14496973. ==> This year's gross margin is higher. ==> Score 1.

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 (May14)
=17993/4354
=4.13252182

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (May13)
=17176/4691
=3.66147943

SUPERVALU Inc's asset turnover of this year was 4.13252182. SUPERVALU Inc's asset turnover of last year was 3.66147943. ==> 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+1+0+0+1+1
=7

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

SUPERVALU Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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 1011001000
Question 6 1001010011
Question 7 0001011100
Question 8 1010001010
Question 9 0101101111
F-score 6556547466

SUPERVALU Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
Question 1 0000111111
Question 2 1111111111
Question 3 0000111111
Question 4 1111011111
Question 5 0111000001
Question 6 0111110010
Question 7 1000000000
Question 8 0111111001
Question 9 1111111111
F-score 4666676567
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