Switch to:
Tesla Motors Inc (NAS:TSLA)
Piotroski F-Score
2 (As of Today)

Warning Sign:

Piotroski F-Score of 2 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

Tesla Motors Inc has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

TSLA' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 7
Current: 2

2
7

During the past 9 years, the highest Piotroski F-Score of Tesla Motors Inc was 7. The lowest was 2. And the median was 3.


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 (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was -107.629 + -154.181 + -184.227 + -229.858 = $-676 Mil.
Cash Flow from Operations was -86.402 + -131.794 + -159.516 + -203.34 = $-581 Mil.
Revenue was 956.661 + 939.88 + 954.976 + 936.789 = $3,788 Mil.
Gross Profit was 261.697 + 260.073 + 213.37 + 231.496 = $967 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(5437.533 + 5849.251 + 6120.03 + 6468.185 + 7547.497) / 5 = $6284.4992 Mil.
Total Assets at the begining of this year (Sep14) was $5,438 Mil.
Long-Term Debt was $2,028 Mil.
Total Current Assets was $2,999 Mil.
Total Current Liabilities was $2,554 Mil.
Net Income was -16.264 + -49.8 + -61.9 + -74.708 = $-203 Mil.

Revenue was 615.219 + 620.542 + 769.349 + 851.804 = $2,857 Mil.
Gross Profit was 156.589 + 155.128 + 212.995 + 251.851 = $777 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(2166.209 + 2416.93 + 4500.41 + 5054.463 + 5437.533) / 5 = $3915.109 Mil.
Total Assets at the begining of last year (Sep13) was $2,166 Mil.
Long-Term Debt was $1,799 Mil.
Total Current Assets was $3,363 Mil.
Total Current Liabilities was $1,840 Mil.

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.

Tesla Motors Inc's current net income (TTM) was -676. ==> Negative ==> Score 0.

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.

Score 1 if positive, 0 if negative.

Tesla Motors Inc's current cash flow from operations (TTM) was -581. ==> Negative ==> Score 0.

Question 3. 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 (Sep14)
=-675.895/5437.533
=-0.12430177

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=-202.672/2166.209
=-0.09356069

Tesla Motors Inc's return on assets of this year was -0.12430177. Tesla Motors Inc's return on assets of last year was -0.09356069. ==> Last year is higher ==> Score 0.

Question 4. 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.

Tesla Motors Inc's current net income (TTM) was -676. Tesla Motors Inc's current cash flow from operations (TTM) was -581. ==> -581 > -676 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=2027.575/6284.4992
=0.32263112

Gearing (Last Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=1799.441/3915.109
=0.45961453

Tesla Motors Inc's gearing of this year was 0.32263112. Tesla Motors Inc's gearing of last year was 0.45961453. ==> 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

Current Ratio (This Year: Sep15)=Total Current Assets/Total Current Liabilities
=2998.795/2553.771
=1.17426151

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=3362.914/1839.777
=1.82789218

Tesla Motors Inc's current ratio of this year was 1.17426151. Tesla Motors Inc's current ratio of last year was 1.82789218. ==> Last year's current ratio is higher ==> Score 0.

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.

Tesla Motors Inc's number of shares in issue this year was 129. Tesla Motors Inc's number of shares in issue last year was 124.9. ==> There is larger number of shares in issue this year. ==> Score 0.

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.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=966.636/3788.306
=0.25516313

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=776.563/2856.914
=0.27181882

Tesla Motors Inc's gross margin of this year was 0.25516313. Tesla Motors Inc's gross margin of last year was 0.27181882. ==> Last year's gross margin is higher ==> Score 0.

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

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Sep14)
=3788.306/5437.533
=0.69669573

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=2856.914/2166.209
=1.31885427

Tesla Motors Inc's asset turnover of this year was 0.69669573. Tesla Motors Inc's asset turnover of last year was 1.31885427. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+0+0+1+1+0+0+0+0
=2

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

Tesla Motors Inc has an F-score of 2. 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.

Tesla Motors Inc Annual Data

Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 000000
Question 2 000100
Question 3 011100
Question 4 111111
Question 5 000101
Question 6 100100
Question 7 000000
Question 8 110110
Question 9 001100
F-score 333722

Tesla Motors Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 0000000000
Question 2 1111100000
Question 3 1111101000
Question 4 1111111111
Question 5 1100001111
Question 6 1110100000
Question 7 0010000000
Question 8 1111111100
Question 9 1110000000
F-score 7774524322
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)

GuruFocus Premium Plus Membership

FEEDBACK