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Sysco Corporation (NYSE:SYY)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Sysco Corporation has an F-score of 4 indicating the company's financial situation is typical for a stable company.

SYY' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 4

3
8

During the past 13 years, the highest Piotroski F-Score of Sysco Corporation 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 210.835 + 285.59 + 283.043 + 201.417 = $981 Mil.
Cash Flow from Operations was 288.935 + 169.229 + 752.186 + 372.623 = $1,583 Mil.
Revenue was 11237.969 + 11714.267 + 11601.056 + 10926.371 = $45,480 Mil.
Gross Profit was 1964.951 + 2065.487 + 2036.162 + 1910.319 = $7,977 Mil.
Total Assets at the begining of this year (Dec12) was $12,471 Mil.
Total Assets was $13,013 Mil.
Long-Term Debt was $2,944 Mil.
Total Current Assets was $6,521 Mil.
Total Current Liabilities was $3,749 Mil.
Net Income was 221.369 + 286.598 + 309.269 + 259.55 = $1,077 Mil.

Revenue was 10796.89 + 11086.916 + 11045.382 + 10504.746 = $43,434 Mil.
Gross Profit was 1952.11 + 2029.795 + 2011.711 + 1871.616 = $7,865 Mil.
Total Assets at the begining of last year (Dec11) was $11,454 Mil.
Total Assets was $12,471 Mil.
Long-Term Debt was $2,809 Mil.
Total Current Assets was $6,160 Mil.
Total Current Liabilities was $3,487 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.

Sysco Corporation's current net income was 981. ==> 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.

Sysco Corporation's current cash flow from operations was 1,583. ==> 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 (Dec12)
=980.885/12471.302
=0.07865137

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=1076.786/11454.027
=0.09400938

Sysco Corporation's return on assets of this year was 0.07865137. Sysco Corporation's return on assets of last year was 0.09400938. ==> 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.

Sysco Corporation's current net income was 981. Sysco Corporation's current cash flow from operations was 1,583. ==> 1,583 > 981 ==> 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
=2944.083/13013.025
=0.22624125

Gearing (Last Year)=Long-Term Debt/Total Assets
=2809.29/12471.302
=0.22526036

Sysco Corporation's gearing of this year was 0.22624125. Sysco Corporation's gearing of last year was 0.22526036. ==> 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
=6520.856/3749.25
=1.73924278

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=6159.785/3487.417
=1.76628863

Sysco Corporation's current ratio of this year was 1.73924278. Sysco Corporation's current ratio of last year was 1.76628863. ==> Last year's current ratio is higher ==> Score 0.

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.

Sysco Corporation's number of shares in issue this year was 587.9. Sysco Corporation's number of shares in issue last year was 589.8. ==> There is the same number of shares in issue this year, or fewer. ==> Score 1.

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
=7976.919/45479.663
=0.1753953

Gross Margin (Last Year)=Gross Profit/Revenue
=7865.232/43433.934
=0.18108496

Sysco Corporation's gross margin of this year was 0.1753953. Sysco Corporation's gross margin of last year was 0.18108496. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec12)
=45479.663/12471.302
=3.64674538

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=43433.934/11454.027
=3.79202302

Sysco Corporation's asset turnover of this year was 3.64674538. Sysco Corporation's asset turnover of last year was 3.79202302. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+0+1+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Sysco Corporation has an F-score of 4 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.

Sysco Corporation Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Q1 1111111111
Q2 1111111111
Q3 1001101000
Q4 1111110011
Q5 1100001101
Q6 0011110010
Q7 0111111100
Q8 0011001000
Q9 0010101100
F-score 5577757544

Sysco Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 0000000000
Q4 0111111111
Q5 1110011100
Q6 0001111000
Q7 0101100001
Q8 0000000000
Q9 1110000000
F-score 4655555434
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