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Matrix Asset Management, Inc. (TSX:MTA)
Piotroski F-Score
0 (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

Matrix Asset Management, Inc. has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

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 (Sep13) TTM: Last Year (Sep12) TTM: Net Income was -3.183 + -1.28 + -1.775 + -5.097 = C\$-11.34 Mil. Cash Flow from Operations was 1.671 + -0.77 + -0.979 + -2.219 = C\$-2.30 Mil. Revenue was 9.975 + 4.936 + 4.881 + 2.749 = C\$22.54 Mil. Gross Profit was 9.975 + 4.936 + 4.881 + 2.749 = C\$22.54 Mil. Average Total Assets from the begining of this year (Sep12) to the end of this year (Sep13) was (28.39 + 25.439 + 23.743 + 23.286 + 7.516) / 5 = C\$21.6748 Mil. Total Assets at the begining of this year (Sep12) was C\$28.39 Mil. Long-Term Debt was C\$4.45 Mil. Total Current Assets was C\$0.00 Mil. Total Current Liabilities was C\$0.00 Mil. Net Income was -9.061 + -0.535 + -1.531 + 0.393 = C\$-10.73 Mil. Revenue was 6.442 + 6.72 + 6.168 + 3.926 = C\$23.26 Mil. Gross Profit was 6.442 + 6.72 + 6.168 + 3.926 = C\$23.26 Mil. Average Total Assets from the begining of last year (Sep11) to the end of last year (Sep12) was (35.036 + 28.133 + 28.593 + 28.091 + 28.39) / 5 = C\$29.6486 Mil. Total Assets at the begining of last year (Sep11) was C\$35.04 Mil. Long-Term Debt was C\$7.78 Mil. Total Current Assets was C\$0.00 Mil. Total Current Liabilities was C\$0.00 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.

Matrix Asset Management, Inc.'s current net income (TTM) was -11.34. ==> 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.

Matrix Asset Management, Inc.'s current cash flow from operations (TTM) was -2.30. ==> 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 (Sep12) = -11.335 / 28.39 = -0.3992603

 ROA (Last Year) = Net Income (TTM) / Total Assets at the Beginning of Last Year (Sep11) = -10.734 / 35.036 = -0.30637059

Matrix Asset Management, Inc.'s return on assets of this year was -0.3992603. Matrix Asset Management, Inc.'s return on assets of last year was -0.30637059. ==> 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.

Matrix Asset Management, Inc.'s current net income (TTM) was -11.34. Matrix Asset Management, Inc.'s current cash flow from operations (TTM) was -2.30. ==> -2.30 > -11.34 ==> 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: Sep13) = Long-Term Debt / Average Total Assets from Sep12 to Sep13 = 4.452 / 21.6748 = 0.20539982

 Gearing (Last Year: Sep12) = Long-Term Debt / Average Total Assets from Sep11 to Sep12 = 7.783 / 29.6486 = 0.26250818

Matrix Asset Management, Inc.'s gearing of this year was 0.20539982. Matrix Asset Management, Inc.'s gearing of last year was 0.26250818. ==> 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: Sep13) = Total Current Assets / Total Current Liabilities = 0 / 0 =

 Current Ratio (Last Year: Sep12) = Total Current Assets / Total Current Liabilities = 0 / 0 =

Matrix Asset Management, Inc.'s current ratio of this year was . Matrix Asset Management, Inc.'s current ratio of last year was . ==> 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.

Matrix Asset Management, Inc.'s number of shares in issue this year was 50.8. Matrix Asset Management, Inc.'s number of shares in issue last year was 49.3. ==> 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 = 22.541 / 22.541 = 1

 Gross Margin (Last Year: TTM) = Gross Profit / Revenue = 23.256 / 23.256 = 1

Matrix Asset Management, Inc.'s gross margin of this year was 1. Matrix Asset Management, Inc.'s gross margin of last year was 1. ==> 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 (Sep12) = 22.541 / 28.39 = 0.79397675

 Asset Turnover (Last Year) = Revenue (TTM) / Total Assets at the Beginning of Last Year (Sep11) = 23.256 / 35.036 = 0.6637744

Matrix Asset Management, Inc.'s asset turnover of this year was 0.79397675. Matrix Asset Management, Inc.'s asset turnover of last year was 0.6637744. ==> This year's asset turnover is higher. ==> Score 1.

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 + 1 = 3

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

Matrix Asset Management, Inc. 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Matrix Asset Management, Inc. Annual Data

 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Question 1 1 1 1 1 1 1 0 1 0 0 Question 2 1 1 1 1 1 1 1 1 0 1 Question 3 0 1 0 0 0 0 0 1 0 1 Question 4 0 1 0 0 1 1 1 1 1 1 Question 5 1 1 1 1 1 1 0 1 0 0 Question 6 0 0 0 0 0 0 0 0 0 0 Question 7 0 1 0 1 1 1 0 0 1 0 Question 8 0 0 0 0 0 0 0 0 0 0 Question 9 1 0 1 0 0 0 1 0 0 1 F-score 4 6 4 4 5 5 3 5 2 4

Matrix Asset Management, Inc. Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Question 1 0 0 0 0 0 0 0 0 0 0 Question 2 0 0 0 1 1 1 1 1 1 0 Question 3 1 1 0 0 0 0 1 1 1 0 Question 4 0 0 1 1 1 1 1 1 1 1 Question 5 1 1 0 0 0 0 0 0 1 1 Question 6 0 0 0 0 0 0 0 0 0 0 Question 7 1 1 1 1 1 0 0 0 0 0 Question 8 0 0 0 0 0 0 0 0 0 0 Question 9 0 0 0 0 0 0 1 1 1 1 F-score 3 3 2 3 3 2 4 4 5 3
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