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TSR Inc (NAS:TSRI)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

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

TSRI' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 6

2
8

During the past 13 years, the highest Piotroski F-Score of TSR Inc was 8. The lowest was 2. 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 (Aug14) TTM:Last Year (Aug13) TTM:
Net Income was 0.032 + -0.091 + -0.038 + 0.025 = $-0.07 Mil.
Cash Flow from Operations was -0.102 + 0.655 + 0.185 + 1.376 = $2.11 Mil.
Revenue was 12.166 + 12.128 + 13.149 + 13.686 = $51.13 Mil.
Gross Profit was 2.066 + 1.929 + 2.186 + 2.299 = $8.48 Mil.
Average Total Assets from the begining of this year (Aug13)
to the end of this year (Aug14) was
(13.494 + 13.192 + 13.475 + 13.563 + 13.919) / 5 = $13.5286 Mil.
Total Assets at the begining of this year (Aug13) was $13.49 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $13.73 Mil.
Total Current Liabilities was $4.96 Mil.
Net Income was -0.182 + -0.255 + 0.011 + 0.011 = $-0.42 Mil.

Revenue was 10.56 + 10.515 + 12.55 + 12.087 = $45.71 Mil.
Gross Profit was 1.755 + 1.641 + 2.12 + 2.098 = $7.61 Mil.
Average Total Assets from the begining of last year (Aug12)
to the end of last year (Aug13) was
(17.229 + 13.801 + 13.161 + 13.619 + 13.494) / 5 = $14.2608 Mil.
Total Assets at the begining of last year (Aug12) was $17.23 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $13.05 Mil.
Total Current Liabilities was $4.53 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.

TSR Inc's current net income (TTM) was -0.07. ==> Negative ==> Score 0.

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.

TSR Inc's current cash flow from operations (TTM) was 2.11. ==> 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 (Aug13)
=-0.072/13.494
=-0.0053357

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Aug12)
=-0.415/17.229
=-0.02408729

TSR Inc's return on assets of this year was -0.0053357. TSR Inc's return on assets of last year was -0.02408729. ==> 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.

TSR Inc's current net income (TTM) was -0.07. TSR Inc's current cash flow from operations (TTM) was 2.11. ==> 2.11 > -0.07 ==> 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: Aug14)=Long-Term Debt/Average Total Assets from Aug13 to Aug14
=0/13.5286
=0

Gearing (Last Year: Aug13)=Long-Term Debt/Average Total Assets from Aug12 to Aug13
=0/14.2608
=0

TSR Inc's gearing of this year was 0. TSR Inc's gearing of last year was 0. ==> This year is lower or equal to last year. ==> 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: Aug14)=Total Current Assets/Total Current Liabilities
=13.727/4.955
=2.770333

Current Ratio (Last Year: Aug13)=Total Current Assets/Total Current Liabilities
=13.046/4.529
=2.88054758

TSR Inc's current ratio of this year was 2.770333. TSR Inc's current ratio of last year was 2.88054758. ==> 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.

TSR Inc's number of shares in issue this year was 2. TSR Inc's number of shares in issue last year was 2. ==> There is smaller number of shares in issue this year, or the same. ==> 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: TTM)=Gross Profit/Revenue
=8.48/51.129
=0.16585499

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7.614/45.712
=0.16656458

TSR Inc's gross margin of this year was 0.16585499. TSR Inc's gross margin of last year was 0.16656458. ==> 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 (Aug13)
=51.129/13.494
=3.78901734

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Aug12)
=45.712/17.229
=2.653201

TSR Inc's asset turnover of this year was 3.78901734. TSR Inc's asset turnover of last year was 2.653201. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

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

TSR 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.

TSR Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
Q1 1111111000
Q2 1111110101
Q3 1010001001
Q4 1000110101
Q5 1111111111
Q6 0011100001
Q7 0111111111
Q8 0000001001
Q9 1011001101
F-score 6476656528

TSR Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
Q1 0000000000
Q2 1100000011
Q3 0000001111
Q4 1111000011
Q5 1111111111
Q6 0000001010
Q7 1111111111
Q8 0000011110
Q9 1100011111
F-score 5533246586
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