Switch to:
Terreno Realty Corp (NYSE:TRNO)
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

Terreno Realty Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

TRNO' s 10-Year Piotroski F-Score Range
Min: 3   Max: 7
Current: 6

3
7

During the past 5 years, the highest Piotroski F-Score of Terreno Realty Corp was 7. 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 2.721 + 1.785 + 3.701 + 1.325 = $9.53 Mil.
Cash Flow from Operations was 6.575 + 5.818 + 3.777 + 4.467 = $20.64 Mil.
Revenue was 16.61 + 15.804 + 13.169 + 11.516 = $57.10 Mil.
Gross Profit was 12.216 + 10.982 + 9.539 + 8.227 = $40.96 Mil.
Total Assets at the begining of this year (Jun13) was $520.79 Mil.
Total Assets was $751.50 Mil.
Long-Term Debt was $158.09 Mil.
Total Current Assets was $32.65 Mil.
Total Current Liabilities was $14.38 Mil.
Net Income was 0.822 + 0.794 + 3.553 + 0.522 = $5.69 Mil.

Revenue was 10.815 + 10.029 + 8.64 + 9.066 = $38.55 Mil.
Gross Profit was 7.807 + 7.186 + 6.006 + 6.624 = $27.62 Mil.
Total Assets at the begining of last year (Jun12) was $351.43 Mil.
Total Assets was $520.79 Mil.
Long-Term Debt was $53.50 Mil.
Total Current Assets was $7.14 Mil.
Total Current Liabilities was $9.08 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.

Terreno Realty Corp's current net income was 9.53. ==> 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.

Terreno Realty Corp's current cash flow from operations was 20.64. ==> 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 (Jun13)
=9.532/520.785
=0.01830314

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=5.691/351.434
=0.01619365

Terreno Realty Corp's return on assets of this year was 0.01830314. Terreno Realty Corp's return on assets of last year was 0.01619365. ==> 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.

Terreno Realty Corp's current net income was 9.53. Terreno Realty Corp's current cash flow from operations was 20.64. ==> 20.64 > 9.53 ==> 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)=Long-Term Debt/Total Assets
=158.089/751.496
=0.21036572

Gearing (Last Year)=Long-Term Debt/Total Assets
=53.5/520.785
=0.10272953

Terreno Realty Corp's gearing of this year was 0.21036572. Terreno Realty Corp's gearing of last year was 0.10272953. ==> 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)=Total Current Assets/Total Current Liabilities
=32.651/14.384
=2.26995273

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=7.137/9.076
=0.78635963

Terreno Realty Corp's current ratio of this year was 2.26995273. Terreno Realty Corp's current ratio of last year was 0.78635963. ==> 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.

Terreno Realty Corp's number of shares in issue this year was 28.4. Terreno Realty Corp's number of shares in issue last year was 19.1. ==> 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)=Gross Profit/Revenue
=40.964/57.099
=0.71742062

Gross Margin (Last Year)=Gross Profit/Revenue
=27.623/38.55
=0.71654994

Terreno Realty Corp's gross margin of this year was 0.71742062. Terreno Realty Corp's gross margin of last year was 0.71654994. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun13)
=57.099/520.785
=0.10964025

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=38.55/351.434
=0.10969343

Terreno Realty Corp's asset turnover of this year was 0.10964025. Terreno Realty Corp's asset turnover of last year was 0.10969343. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+0+1+0+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Terreno Realty Corp 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.

Terreno Realty Corp Annual Data

Dec09Dec10Dec11Dec12Dec13
Q1 1
Q2 1
Q3 0
Q4 1
Q5 1
Q6 0
Q7 0
Q8 1
Q9 0
F-score 5

Terreno Realty Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 11111
Q2 11111
Q3 11001
Q4 11111
Q5 11100
Q6 01001
Q7 00000
Q8 10101
Q9 00000
F-score 4567066536
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