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Molson Coors Brewing Co (NYSE:TAP)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

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

Molson Coors Brewing Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

TAP' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of Molson Coors Brewing Co was 9. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 121.8 + 131.5 + 163.4 + 290.9 = $708 Mil.
Cash Flow from Operations was 439 + 138.2 + 149.7 + 426.3 = $1,153 Mil.
Revenue was 1171.2 + 1028.4 + 816 + 1188.5 = $4,204 Mil.
Gross Profit was 501.2 + 384 + 292.8 + 505.2 = $1,683 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(16116.9 + 15772.8 + 15580.1 + 15365.8 + 15873) / 5 = $15,742 Mil.
Total Assets was $15,873 Mil.
Long-Term Debt was $3,209 Mil.
Total Current Assets was $1,800 Mil.
Total Current Liabilities was $2,112 Mil.
Net Income was 198.4 + 60 + 28.5 + 267.3 = $554 Mil.

Revenue was 1195.5 + 1030.2 + 828.5 + 1178 = $4,232 Mil.
Gross Profit was 508.5 + 383.6 + 281.4 + 493.9 = $1,667 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(16236.7 + 16466.5 + 16212.2 + 15942.7 + 16116.9) / 5 = $16,195 Mil.
Total Assets was $16,117 Mil.
Long-Term Debt was $3,296 Mil.
Total Current Assets was $2,071 Mil.
Total Current Liabilities was $2,920 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Molson Coors Brewing Co's current net income (ttm) was 708. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Molson Coors Brewing Co's current cash flow from operations (ttm) was 1,153. ==> 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 (TTM)/Average Total Assets from Jun13 to Jun14
=707.6/15741.72
=0.04495062

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=554.2/16195
=0.03422044

Molson Coors Brewing Co's return on assets of this year was 0.04495062. Molson Coors Brewing Co's return on assets of last year was 0.03422044. ==> 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.

Molson Coors Brewing Co's current net income (ttm) was 708. Molson Coors Brewing Co's current cash flow from operations (ttm) was 1,153. ==> 1,153 > 708 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun14)=Long-Term Debt/Total Assets
=3208.6/15873
=0.202142

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=3295.7/16116.9
=0.20448722

Molson Coors Brewing Co's gearing of this year was 0.202142. Molson Coors Brewing Co's gearing of last year was 0.20448722. ==> This year is lower or equal to last year. ==> Score 1.

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: Jun14)=Total Current Assets/Total Current Liabilities
=1800.3/2111.7
=0.85253587

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=2071.3/2919.9
=0.70937361

Molson Coors Brewing Co's current ratio of this year was 0.85253587. Molson Coors Brewing Co's current ratio of last year was 0.70937361. ==> 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.

Molson Coors Brewing Co's number of shares in issue this year was 185.9. Molson Coors Brewing Co's number of shares in issue last year was 184.1. ==> 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: TTM)=Gross Profit/Revenue
=1683.2/4204.1
=0.40037107

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1667.4/4232.2
=0.39397949

Molson Coors Brewing Co's gross margin of this year was 0.40037107. Molson Coors Brewing Co's gross margin of last year was 0.39397949. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout 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)/Average Total Assets from Jun13 to Jun14
=4204.1/15741.72
=0.26706739

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=4232.2/16195
=0.26132757

Molson Coors Brewing Co's asset turnover of this year was 0.26706739. Molson Coors Brewing Co's asset turnover of last year was 0.26132757. ==> 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+1+1+1+0+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Molson Coors Brewing Co has an F-score of 8. 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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Molson Coors Brewing Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1011010001
Q4 1111111111
Q5 1101010101
Q6 1011101001
Q7 0000000110
Q8 1110011000
Q9 1111000111
F-score 8677465657

Molson Coors Brewing Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0000000111
Q4 1111111111
Q5 0000011111
Q6 1000001111
Q7 1111000000
Q8 1000000011
Q9 0110000011
F-score 6554345688
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