Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Fresh Market has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.
The historical rank and industry rank for Fresh Market's Piotroski F-Score or its related term are showing as below:
Fresh Market Piotroski F-Score Historical Data
The historical data trend for Fresh Market's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
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.
Fresh Market's current Net Income (TTM) was 65.
==> 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.
Fresh Market's return on assets of this year was 0.12207864. Fresh Market's return on assets of last year was 0.13420196.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Fresh Market's gearing of this year was 0.05713322. Fresh Market's gearing of last year was 0.06680721.
==> This year is lower or equal to last year. ==> Score 1.
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
Fresh Market's current ratio of this year was 1.11133493. Fresh Market's current ratio of last year was 1.0597756.
==> 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.
Fresh Market's number of shares in issue this year was 48.103. Fresh Market's number of shares in issue last year was 48.476.
==> 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.
Fresh Market's gross margin of this year was 0.34045868. Fresh Market's gross margin of last year was 0.33916925.
==> This year's gross margin is higher. ==> Score 1.
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
Fresh Market's asset turnover of this year was 3.46123652. Fresh Market's asset turnover of last year was 3.73309513.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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7
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Fresh Market has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.
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.
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.
Fresh Market Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Fresh Market's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Fresh Market, Inc., is a Delaware corporation and it was founded in 1982. The Company is a specialty retailer focused on creating an extraordinary food shopping experience for its customers. It provides high-quality food products, with an emphasis on fresh, premium perishables and an uncompromising commitment to customer service. As of January 26, 2014, the Company operates 151 stores in 26 states. It offers fresh, carefully selected, high-quality food products focused on perishable categories. Examples of its offerings include hand-trimmed steaks that are aged for tenderness, fresh seafood delivered up to six times per week, hand-stacked produce that is colorfully displayed and French-style baguettes baked in-store each morning. The Company's stores average approximately 21,000 square feet, compared to the approximately 40,000 to 60,000 square foot stores operated by many conventional supermarkets. The Company's distribution strategy is to capitalize on the capabilities of best-in-class third-party logistics providers and, as such, it does not own warehouses, distribution facilities or transportation equipment. The Company outsources substantially all of its logistics functions to third-party distributors and vendors. Its trademarks, including its registered The Fresh Market, Experience the Food and TFM trademarks are valuable assets that reinforce its customers' favorable perception of its stores. The Company's competition varies and includes national conventional supermarkets such as Kroger and Safeway, regional supermarkets such as Harris Teeter and Publix, national superstores such as Wal-Mart and Target, alternative food retailers such as Whole Foods and Trader Joe's, and local supermarkets, natural foods stores, smaller specialty stores and farmers' markets. The Company's stores are subject to various local, state, federal and international laws, regulations and administrative practices affecting its business.
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