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TRC Companies, Inc. (NYSE:TRR)
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

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

TRR' s 10-Year Piotroski F-Score Range
Min: 2   Max: 7
Current: 6

2
7

During the past 13 years, the highest Piotroski F-Score of TRC Companies, Inc. was 7. The lowest was 2. And the median was 5.


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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 3.096 + 2.487 + 24.779 + 3.101 = $33.5 Mil.
Cash Flow from Operations was -6.524 + 1.075 + 10.965 + 7.994 = $13.5 Mil.
Revenue was 91.342 + 93.599 + 87.731 + 84.17 = $356.8 Mil.
Gross Profit was 14.953 + 15.201 + 17.882 + 13.724 = $61.8 Mil.
Total Assets at the begining of this year (Dec12) was $268.6 Mil.
Total Assets was $320.8 Mil.
Long-Term Debt was $0.6 Mil.
Total Current Assets was $201.7 Mil.
Total Current Liabilities was $123.6 Mil.
Net Income was 4.123 + 4.272 + 5.795 + 3.881 = $18.1 Mil.

Revenue was 76.25 + 77.005 + 78.682 + 75.745 = $307.7 Mil.
Gross Profit was 11.686 + 13.319 + 16.421 + 12.835 = $54.3 Mil.
Total Assets at the begining of last year (Dec11) was $289.3 Mil.
Total Assets was $268.6 Mil.
Long-Term Debt was $1.6 Mil.
Total Current Assets was $155.7 Mil.
Total Current Liabilities was $108.9 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.

TRC Companies, Inc.'s current net income was 33.5. ==> 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.

TRC Companies, Inc.'s current cash flow from operations was 13.5. ==> 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 (Dec12)
=33.463/268.576
=0.12459416

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=18.071/289.269
=0.06247126

TRC Companies, Inc.'s return on assets of this year was 0.12459416. TRC Companies, Inc.'s return on assets of last year was 0.06247126. ==> 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.

TRC Companies, Inc.'s current net income was 33.5. TRC Companies, Inc.'s current cash flow from operations was 13.5. ==> 13.5 =< 33.5 ==> CFROA =< ROA ==> Score 0.

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
=0.632/320.804
=0.00197005

Gearing (Last Year)=Long-Term Debt/Total Assets
=1.612/268.576
=0.00600203

TRC Companies, Inc.'s gearing of this year was 0.00197005. TRC Companies, Inc.'s gearing of last year was 0.00600203. ==> 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
=201.651/123.558
=1.63203516

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=155.739/108.891
=1.43022839

TRC Companies, Inc.'s current ratio of this year was 1.63203516. TRC Companies, Inc.'s current ratio of last year was 1.43022839. ==> 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.

TRC Companies, Inc.'s number of shares in issue this year was 30.1. TRC Companies, Inc.'s number of shares in issue last year was 29.5. ==> There is more 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
=61.76/356.842
=0.1730738

Gross Margin (Last Year)=Gross Profit/Revenue
=54.261/307.682
=0.17635416

TRC Companies, Inc.'s gross margin of this year was 0.1730738. TRC Companies, Inc.'s gross margin of last year was 0.17635416. ==> 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 (Dec12)
=356.842/268.576
=1.32864441

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=307.682/289.269
=1.06365355

TRC Companies, Inc.'s asset turnover of this year was 1.32864441. TRC Companies, Inc.'s asset turnover of last year was 1.06365355. ==> 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+0+1+1+0+0+1
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

TRC Companies, 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.

TRC Companies, Inc. Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Q1 1000000011
Q2 1111111111
Q3 0001011111
Q4 1111111100
Q5 1110011011
Q6 0000011011
Q7 1000000000
Q8 0011101110
Q9 0001110111
F-score 5345466576

TRC Companies, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1111111111
Q4 1110000000
Q5 1111011111
Q6 0001111111
Q7 0000000000
Q8 1000011000
Q9 1111111111
F-score 7666577666
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