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Unum Group (NYSE:UNM)
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

Unum Group has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

UNM' s 10-Year Piotroski F-Score Range
Min: 3   Max: 6
Current: 0

3
6

During the past 13 years, the highest Piotroski F-Score of Unum Group was 6. The lowest was 3. 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 (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 228.9 + 242.5 + 221.1 + 228.9 = $921 Mil.
Cash Flow from Operations was 346.7 + 379.1 + 218.2 + 0 = $944 Mil.
Revenue was 2611.1 + 2653.5 + 2609.4 + 2611.1 = $10,485 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(59403.6 + 61078.6 + 62218.1 + 61960.6 + 0) / 5 = $48932.18 Mil.
Total Assets at the begining of this year (Dec13) was $59,404 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Net Income was 212.6 + 218.6 + 205.7 + 221.2 = $858 Mil.

Revenue was 2624.8 + 2601.9 + 2540.9 + 2586.2 = $10,354 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(62236.1 + 61611.4 + 59366.2 + 59585.8 + 59403.6) / 5 = $60440.62 Mil.
Total Assets at the begining of last year (Dec12) was $62,236 Mil.
Long-Term Debt was $2,612 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 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.

Unum Group's current net income (TTM) was 921. ==> 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.

Unum Group's current cash flow from operations (TTM) was 944. ==> 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 (Dec13)
=921.4/59403.6
=0.01551084

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=858.1/62236.1
=0.01378782

Unum Group's return on assets of this year was 0.01551084. Unum Group's return on assets of last year was 0.01378782. ==> 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.

Unum Group's current net income (TTM) was 921. Unum Group's current cash flow from operations (TTM) was 944. ==> 944 > 921 ==> 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: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=0/48932.18
=0

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=2612/60440.62
=0.04321597

Unum Group's gearing of this year was 0. Unum Group's gearing of last year was 0.04321597. ==> 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: Dec14)=Total Current Assets/Total Current Liabilities
=0/0
=

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=0/0
=

Unum Group's current ratio of this year was . Unum Group's current ratio of last year was . ==> 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.

Unum Group's number of shares in issue this year was 260.7. Unum Group's number of shares in issue last year was 262.5. ==> 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
=0/10485.1
=0

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=0/10353.8
=0

Unum Group's gross margin of this year was 0. Unum Group's gross margin of last year was 0. ==> 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 (Dec13)
=10485.1/59403.6
=0.17650614

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=10353.8/62236.1
=0.16636325

Unum Group's asset turnover of this year was 0.17650614. Unum Group's asset turnover of last year was 0.16636325. ==> 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+1+1+0+1+0+1
=7

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

Unum Group has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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.

Unum Group Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Q1 111111111
Q2 111111111
Q3 101010010
Q4 111111111
Q5 011101101
Q6 000000000
Q7 000111111
Q8 000000000
Q9 000010000
F-score 445565555

Unum Group Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Q1 111111111
Q2 111111111
Q3 011110011
Q4 111111111
Q5 000011000
Q6 000000000
Q7 111111111
Q8 000000000
Q9 100000011
F-score 5555654660
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