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TIBCO Software, Inc. (NAS:TIBX)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

TIBCO Software, Inc. has an F-score of 6 indicating the company's financial situation is typical for a stable company.

TIBX' s 10-Year Piotroski F-Score Range
Min: 1   Max: 9
Current: 6

1
9

During the past 13 years, the highest Piotroski F-Score of TIBCO Software, Inc. was 9. The lowest was 1. 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 (Feb14) TTM:Last Year (Feb13) TTM:
Net Income was 12.15 + 44.549 + 21.251 + 8.715 = $87 Mil.
Cash Flow from Operations was 52.869 + 59.617 + 58.326 + 24.854 = $196 Mil.
Revenue was 252.879 + 315.455 + 270.859 + 245.846 = $1,085 Mil.
Gross Profit was 175.347 + 233.591 + 192.886 + 171.875 = $774 Mil.
Total Assets at the begining of this year (Feb13) was $1,916 Mil.
Total Assets was $1,992 Mil.
Long-Term Debt was $544 Mil.
Total Current Assets was $1,059 Mil.
Total Current Liabilities was $414 Mil.
Net Income was 9.505 + 48.788 + 26.086 + 26.492 = $111 Mil.

Revenue was 237.79 + 296.527 + 255.021 + 247.363 = $1,037 Mil.
Gross Profit was 164.153 + 220.938 + 182.772 + 178.476 = $746 Mil.
Total Assets at the begining of last year (Feb12) was $1,370 Mil.
Total Assets was $1,916 Mil.
Long-Term Debt was $528 Mil.
Total Current Assets was $1,048 Mil.
Total Current Liabilities was $415 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.

TIBCO Software, Inc.'s current net income was 87. ==> 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.

TIBCO Software, Inc.'s current cash flow from operations was 196. ==> 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 (Feb13)
=86.665/1916.38
=0.04522329

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Feb12)
=110.871/1369.715
=0.08094458

TIBCO Software, Inc.'s return on assets of this year was 0.04522329. TIBCO Software, Inc.'s return on assets of last year was 0.08094458. ==> 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.

TIBCO Software, Inc.'s current net income was 87. TIBCO Software, Inc.'s current cash flow from operations was 196. ==> 196 > 87 ==> 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
=544.054/1992.324
=0.27307506

Gearing (Last Year)=Long-Term Debt/Total Assets
=528.285/1916.38
=0.27566819

TIBCO Software, Inc.'s gearing of this year was 0.27307506. TIBCO Software, Inc.'s gearing of last year was 0.27566819. ==> This year is lower. ==> 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)=Total Current Assets/Total Current Liabilities
=1058.79/414.297
=2.55563038

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1047.707/414.75
=2.52611694

TIBCO Software, Inc.'s current ratio of this year was 2.55563038. TIBCO Software, Inc.'s current ratio of last year was 2.52611694. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

TIBCO Software, Inc.'s number of shares in issue this year was 167.4. TIBCO Software, Inc.'s number of shares in issue last year was 169.1. ==> 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
=773.699/1085.039
=0.71306101

Gross Margin (Last Year)=Gross Profit/Revenue
=746.339/1036.701
=0.71991731

TIBCO Software, Inc.'s gross margin of this year was 0.71306101. TIBCO Software, Inc.'s gross margin of last year was 0.71991731. ==> 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 (Feb13)
=1085.039/1916.38
=0.56619199

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Feb12)
=1036.701/1369.715
=0.75687351

TIBCO Software, Inc.'s asset turnover of this year was 0.56619199. TIBCO Software, Inc.'s asset turnover of last year was 0.75687351. ==> 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+1+1+1+0+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

TIBCO Software, Inc. has an F-score of 6 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.

TIBCO Software, Inc. Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
Q1 1111111111
Q2 1111111111
Q3 1100111100
Q4 1111111111
Q5 1111011001
Q6 0100010011
Q7 1011111011
Q8 0010010000
Q9 1111111110
F-score 7776697566

TIBCO Software, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
Q1 1111111111
Q2 1111111111
Q3 1111000000
Q4 1111111111
Q5 0000001011
Q6 0111111111
Q7 1111111111
Q8 0000000000
Q9 1111100000
F-score 6777656560
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