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Synaptics Inc (NAS:SYNA)
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

Synaptics Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

SYNA' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 8
Current: 5

4
8

During the past 13 years, the highest Piotroski F-Score of Synaptics Inc was 8. The lowest was 4. And the median was 7.


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 local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was 20.5 + -7.1 + 3.7 + 22.8 = USD 40 Mil.
Cash Flow from Operations was 36.6 + 113.2 + 0 + 52.4 = USD 202 Mil.
Revenue was 402.5 + 323.9 + 386.2 + 461.3 = USD 1,574 Mil.
Gross Profit was 144.4 + 108.1 + 123.4 + 138.7 = USD 515 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(1453.3 + 1449.5 + 1300.2 + 1241.2 + 1302.5) / 5 = USD 1349.34 Mil.
Total Assets at the begining of this year (Dec15) was USD 1,453 Mil.
Long-Term Debt was USD 210 Mil.
Total Current Assets was USD 805 Mil.
Total Current Liabilities was USD 329 Mil.
Net Income was 31.5 + 31.3 + 23.8 + 35 = USD 122 Mil.

Revenue was 477.6 + 478.9 + 470 + 470.5 = USD 1,897 Mil.
Gross Profit was 164.3 + 167.3 + 163.8 + 165.2 = USD 661 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(1503.574 + 1511.217 + 1519.4 + 1394.1 + 1453.3) / 5 = USD 1476.3182 Mil.
Total Assets at the begining of last year (Dec14) was USD 1,504 Mil.
Long-Term Debt was USD 224 Mil.
Total Current Assets was USD 892 Mil.
Total Current Liabilities was USD 398 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.

Synaptics Inc's current net income (TTM) was 40. ==> 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.

Synaptics Inc's current cash flow from operations (TTM) was 202. ==> 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 (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Dec15)
=39.9/1453.3
=0.02745476

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=121.6/1503.574
=0.08087397

Synaptics Inc's return on assets of this year was 0.02745476. Synaptics Inc's return on assets of last year was 0.08087397. ==> Last year is higher ==> Score 0.

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.

Synaptics Inc's current net income (TTM) was 40. Synaptics Inc's current cash flow from operations (TTM) was 202. ==> 202 > 40 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=209.7/1349.34
=0.15540931

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=223.7/1476.3182
=0.1515256

Synaptics Inc's gearing of this year was 0.15540931. Synaptics Inc's gearing of last year was 0.1515256. ==> 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: Dec16)=Total Current Assets/Total Current Liabilities
=805.2/328.9
=2.44816054

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=892.3/398.1
=2.24139663

Synaptics Inc's current ratio of this year was 2.44816054. Synaptics Inc's current ratio of last year was 2.24139663. ==> 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.

Synaptics Inc's number of shares in issue this year was 35.9. Synaptics Inc's number of shares in issue last year was 37.7. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=514.6/1573.9
=0.32695851

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=660.6/1897
=0.34823405

Synaptics Inc's gross margin of this year was 0.32695851. Synaptics Inc's gross margin of last year was 0.34823405. ==> 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 (Dec15)
=1573.9/1453.3
=1.08298355

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=1897/1503.574
=1.26166055

Synaptics Inc's asset turnover of this year was 1.08298355. Synaptics Inc's asset turnover of last year was 1.26166055. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+1+1+0+0
=5

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

Synaptics 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 local exchange's currency.

Synaptics Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Question 1 1111111111
Question 2 1111111111
Question 3 1110101010
Question 4 0111111111
Question 5 1110111101
Question 6 1001110001
Question 7 1111011001
Question 8 0101111001
Question 9 1110101110
F-score 7876878557

Synaptics Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 1111111111
Question 2 1111111111
Question 3 0011110000
Question 4 1111111111
Question 5 1000011110
Question 6 0000011111
Question 7 0000111111
Question 8 0000000110
Question 9 1111100000
F-score 5455676775
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