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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 (Feb14) TTM:Last Year (Feb13) TTM:
Net Income was 26 + 31 + 40 + 85 = $182 Mil.
Cash Flow from Operations was 292 + -42 + -42 + -189 = $19 Mil.
Revenue was 3953 + 4012 + 3948 + 5158 = $17,071 Mil.
Gross Profit was 590 + 569 + 577 + 712 = $2,448 Mil.
Total Assets at the begining of this year (Feb13) was $11,034 Mil.
Total Assets was $4,374 Mil.
Long-Term Debt was $2,732 Mil.
Total Current Assets was $1,543 Mil.
Total Current Liabilities was $1,491 Mil.
Net Income was -1412 + 16 + -111 + 41 = $-1,466 Mil.

Revenue was 3899 + 4051 + 3939 + 5237 = $17,126 Mil.
Gross Profit was 557 + 530 + 529 + 707 = $2,323 Mil.
Total Assets at the begining of last year (Feb12) was $12,101 Mil.
Total Assets was $11,034 Mil.
Long-Term Debt was $2,815 Mil.
Total Current Assets was $2,970 Mil.
Total Current Liabilities was $4,350 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 182. ==> Positive ==> Score 1.

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 19. ==> 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 (Feb13)
=182/11034
=0.01649447

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Feb12)
=-1466/12101
=-0.12114701

SUPERVALU Inc's return on assets of this year was 0.01649447. SUPERVALU Inc's return on assets of last year was -0.12114701. ==> 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 was 182. SUPERVALU Inc's current cash flow from operations was 19. ==> 19 =< 182 ==> CFROA =< ROA ==> Score 0.

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)=Long-Term Debt/Total Assets
=2732/4374
=0.62459991

Gearing (Last Year)=Long-Term Debt/Total Assets
=2815/11034
=0.25512054

SUPERVALU Inc's gearing of this year was 0.62459991. SUPERVALU Inc's gearing of last year was 0.25512054. ==> 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)=Total Current Assets/Total Current Liabilities
=1543/1491
=1.03487592

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2970/4350
=0.68275862

SUPERVALU Inc's current ratio of this year was 1.03487592. SUPERVALU Inc's current ratio of last year was 0.68275862. ==> 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 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 261. SUPERVALU Inc's number of shares in issue last year was 212. ==> 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)=Gross Profit/Revenue
=2448/17071
=0.14340109

Gross Margin (Last Year)=Gross Profit/Revenue
=2323/17126
=0.13564171

SUPERVALU Inc's gross margin of this year was 0.14340109. SUPERVALU Inc's gross margin of last year was 0.13564171. ==> 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 (Feb13)
=17071/11034
=1.54712706

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Feb12)
=17126/12101
=1.41525494

SUPERVALU Inc's asset turnover of this year was 1.54712706. SUPERVALU Inc's asset turnover of last year was 1.41525494. ==> 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+0+0+1+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


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 1101010100
Q6 1100101001
Q7 0000101110
Q8 1011000101
Q9 0010110111
F-score 7565564746

SUPERVALU Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
Q1 0000000001
Q2 1111111111
Q3 1100100001
Q4 1111111110
Q5 0100000000
Q6 1011101111
Q7 1101010000
Q8 1100001111
Q9 1100011111
F-score 6734435556
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