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Molson Coors Brewing Co (NYSE:TAP)
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

Molson Coors Brewing Co has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

TAP' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 7

4
9

During the past 13 years, the highest Piotroski F-Score of Molson Coors Brewing Co was 9. The lowest was 4. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 137.2 + 163.4 + 290.9 + -34.4 = $557 Mil.
Cash Flow from Operations was 138.2 + 149.7 + 426.3 + 482.4 = $1,197 Mil.
Revenue was 1028.4 + 816 + 1188.5 + 1168 = $4,201 Mil.
Gross Profit was 384 + 292.8 + 505.2 + 501.4 = $1,683 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(15772.8 + 15580.1 + 15365.8 + 15873 + 14833.4) / 5 = $15485.02 Mil.
Total Assets at the begining of this year (Sep13) was $15,773 Mil.
Long-Term Debt was $2,346 Mil.
Total Current Assets was $1,812 Mil.
Total Current Liabilities was $2,620 Mil.
Net Income was 60 + 28.5 + 267.3 + 134.3 = $490 Mil.

Revenue was 1030.2 + 828.5 + 1178 + 1171.2 = $4,208 Mil.
Gross Profit was 383.6 + 281.4 + 493.9 + 501.2 = $1,660 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(16466.5 + 16212.2 + 15942.7 + 16116.9 + 15772.8) / 5 = $16102.22 Mil.
Total Assets at the begining of last year (Sep12) was $16,467 Mil.
Long-Term Debt was $3,254 Mil.
Total Current Assets was $1,596 Mil.
Total Current Liabilities was $2,288 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.

Molson Coors Brewing Co's current net income (TTM) was 557. ==> 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.

Molson Coors Brewing Co's current cash flow from operations (TTM) was 1,197. ==> 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)/Total Assets at the Beginning of This Year (Sep13)
=557.1/15772.8
=0.0353203

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=490.1/16466.5
=0.02976346

Molson Coors Brewing Co's return on assets of this year was 0.0353203. Molson Coors Brewing Co's return on assets of last year was 0.02976346. ==> 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 557. Molson Coors Brewing Co's current cash flow from operations (TTM) was 1,197. ==> 1,197 > 557 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=2345.8/15485.02
=0.15148834

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=3253.5/16102.22
=0.20205288

Molson Coors Brewing Co's gearing of this year was 0.15148834. Molson Coors Brewing Co's gearing of last year was 0.20205288. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=1811.9/2619.8
=0.69161768

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=1596.1/2287.9
=0.69762664

Molson Coors Brewing Co's current ratio of this year was 0.69161768. Molson Coors Brewing Co's current ratio of last year was 0.69762664. ==> 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 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 185.1. Molson Coors Brewing Co's number of shares in issue last year was 184.6. ==> 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
=1683.4/4200.9
=0.40072365

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1660.1/4207.9
=0.39451983

Molson Coors Brewing Co's gross margin of this year was 0.40072365. Molson Coors Brewing Co's gross margin of last year was 0.39451983. ==> 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 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 (Sep13)
=4200.9/15772.8
=0.26633825

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=4207.9/16466.5
=0.25554307

Molson Coors Brewing Co's asset turnover of this year was 0.26633825. Molson Coors Brewing Co's asset turnover of last year was 0.25554307. ==> 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+0+0+1+1
=7

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

Molson Coors Brewing Co 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.

Molson Coors Brewing Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1011010000
Q4 1111111111
Q5 1011110101
Q6 1011101001
Q7 0000000110
Q8 1110011000
Q9 1101000110
F-score 8577565655

Molson Coors Brewing Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0000000111
Q4 1111111111
Q5 0000111101
Q6 0000011110
Q7 1110000000
Q8 0000000111
Q9 0111000011
F-score 4554455777
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