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Ultra Petroleum Corp (NYSE:UPL)
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

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

UPL' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 6

2
9

During the past 13 years, the highest Piotroski F-Score of Ultra Petroleum Corp was 9. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 41.121 + 101.715 + 106.049 + 125.357 = $374.2 Mil.
Cash Flow from Operations was 145.567 + 175.575 + 171.076 + 168.511 = $660.7 Mil.
Revenue was 225.197 + 326.299 + 296.063 + 288.608 = $1,136.2 Mil.
Gross Profit was 152.319 + 240.996 + 212.712 + 201.461 = $807.5 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(2068.956 + 2785.319 + 2881.842 + 2958.133 + 4003.927) / 5 = $2939.6354 Mil.
Total Assets at the begining of this year (Sep13) was $2,069.0 Mil.
Long-Term Debt was $3,326.0 Mil.
Total Current Assets was $136.9 Mil.
Total Current Liabilities was $374.5 Mil.
Net Income was -472.033 + 16.433 + 116.377 + 63.91 = $-275.3 Mil.

Revenue was 217.185 + 225.626 + 261.376 + 221.205 = $925.4 Mil.
Gross Profit was 151.17 + 213.742 + 184.373 + 148.277 = $697.6 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(2593.628 + 2007.345 + 2035.383 + 2062.878 + 2068.956) / 5 = $2153.638 Mil.
Total Assets at the begining of last year (Sep12) was $2,593.6 Mil.
Long-Term Debt was $1,860.0 Mil.
Total Current Assets was $96.1 Mil.
Total Current Liabilities was $339.9 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.

Ultra Petroleum Corp's current net income (TTM) was 374.2. ==> 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.

Ultra Petroleum Corp's current cash flow from operations (TTM) was 660.7. ==> 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 (Sep13)
=374.242/2068.956
=0.18088447

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=-275.313/2593.628
=-0.10614976

Ultra Petroleum Corp's return on assets of this year was 0.18088447. Ultra Petroleum Corp's return on assets of last year was -0.10614976. ==> 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.

Ultra Petroleum Corp's current net income (TTM) was 374.2. Ultra Petroleum Corp's current cash flow from operations (TTM) was 660.7. ==> 660.7 > 374.2 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=3326/2939.6354
=1.13143283

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=1860/2153.638
=0.86365489

Ultra Petroleum Corp's gearing of this year was 1.13143283. Ultra Petroleum Corp's gearing of last year was 0.86365489. ==> Last year is lower than this year ==> Score 0.

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: Sep14)=Total Current Assets/Total Current Liabilities
=136.877/374.457
=0.36553463

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=96.06/339.914
=0.28260089

Ultra Petroleum Corp's current ratio of this year was 0.36553463. Ultra Petroleum Corp's current ratio of last year was 0.28260089. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Ultra Petroleum Corp's number of shares in issue this year was 154.9. Ultra Petroleum Corp's number of shares in issue last year was 154.5. ==> There is larger 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: TTM)=Gross Profit/Revenue
=807.488/1136.167
=0.71071242

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=697.562/925.392
=0.75380163

Ultra Petroleum Corp's gross margin of this year was 0.71071242. Ultra Petroleum Corp's gross margin of last year was 0.75380163. ==> 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 (Sep13)
=1136.167/2068.956
=0.54914991

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=925.392/2593.628
=0.35679442

Ultra Petroleum Corp's asset turnover of this year was 0.54914991. Ultra Petroleum Corp's asset turnover of last year was 0.35679442. ==> 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+0+1+0+0+1
=6

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

Ultra Petroleum Corp 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.

Ultra Petroleum Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111101101
Q2 1111111111
Q3 1100101001
Q4 1111111111
Q5 1100000100
Q6 1100001001
Q7 0011110010
Q8 0100001101
Q9 1100101001
F-score 7844637537

Ultra Petroleum Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 0000001111
Q2 1111111111
Q3 0000011111
Q4 1111111111
Q5 0000000000
Q6 1100001001
Q7 1110000000
Q8 1000001000
Q9 0000111111
F-score 5432347556
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