Switch to:
Total SA (NYSE:TOT)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Total SA has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

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

3
9

During the past 13 years, the highest Piotroski F-Score of Total SA 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 2234 + 3335 + 3104 + 3463 = $12,136 Mil.
Cash Flow from Operations was 9578 + 5338 + 5277 + 7639 = $27,832 Mil.
Revenue was 58767 + 54855 + 56207 + 54222 = $224,051 Mil.
Gross Profit was 16775 + 16523 + 15836 + 15594 = $64,728 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(230346 + 239223 + 243392 + 248770 + 246576) / 5 = $241661.4 Mil.
Total Assets at the begining of this year (Sep13) was $230,346 Mil.
Long-Term Debt was $43,242 Mil.
Total Current Assets was $88,021 Mil.
Total Current Liabilities was $61,073 Mil.
Net Income was 3095.988 + 1948 + 3364 + 3682 = $12,090 Mil.

Revenue was 60133.044 + 58020 + 55506 + 55676 = $229,335 Mil.
Gross Profit was 18005.925 + 17701 + 15875 + 16769 = $68,351 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(223553.26 + 226444.838 + 225455 + 222179 + 230346) / 5 = $225595.6196 Mil.
Total Assets at the begining of last year (Sep12) was $223,553 Mil.
Long-Term Debt was $33,937 Mil.
Total Current Assets was $85,217 Mil.
Total Current Liabilities was $59,116 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.

Total SA's current net income (TTM) was 12,136. ==> 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.

Total SA's current cash flow from operations (TTM) was 27,832. ==> 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)
=12136/230346
=0.05268596

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=12089.988/223553.26
=0.05408102

Total SA's return on assets of this year was 0.05268596. Total SA's return on assets of last year was 0.05408102. ==> 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.

Total SA's current net income (TTM) was 12,136. Total SA's current cash flow from operations (TTM) was 27,832. ==> 27,832 > 12,136 ==> 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
=43242/241661.4
=0.17893631

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=33937/225595.6196
=0.15043289

Total SA's gearing of this year was 0.17893631. Total SA's gearing of last year was 0.15043289. ==> Last year is lower than this year ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=88021/61073
=1.44124245

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=85217/59116
=1.44152175

Total SA's current ratio of this year was 1.44124245. Total SA's current ratio of last year was 1.44152175. ==> 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.

Total SA's number of shares in issue this year was 2285. Total SA's number of shares in issue last year was 2275. ==> 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
=64728/224051
=0.28889851

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=68350.925/229335.044
=0.2980396

Total SA's gross margin of this year was 0.28889851. Total SA's gross margin of last year was 0.2980396. ==> Last year's gross margin is higher ==> Score 0.

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)
=224051/230346
=0.97267155

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=229335.044/223553.26
=1.02586312

Total SA's asset turnover of this year was 0.97267155. Total SA's asset turnover of last year was 1.02586312. ==> 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+0+0+0
=3

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

Total SA has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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.

Total SA Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1001001100
Q4 1111111111
Q5 1000101110
Q6 0101110010
Q7 1111110000
Q8 1000010000
Q9 0011001110
F-score 7557666663

Total SA Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0000000100
Q4 1111111111
Q5 1111100000
Q6 0010110110
Q7 0000000000
Q8 0000100000
Q9 0000100000
F-score 4464653543
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK