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Village Super Market Inc (NAS:VLGEA)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Village Super Market Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

VLGEA' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 4

4
9

During the past 13 years, the highest Piotroski F-Score of Village Super Market Inc was 9. The lowest was 4. 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 (Apr14) TTM:Last Year (Apr13) TTM:
Net Income was 3.188 + 2.818 + -6.831 + 6.203 = $5 Mil.
Cash Flow from Operations was 4.757 + 33.303 + -2.215 + 16.242 = $52 Mil.
Revenue was 372.511 + 392.241 + 357.046 + 376.323 = $1,498 Mil.
Gross Profit was 100.437 + 105.358 + 93.706 + 101.889 = $401 Mil.
Total Assets at the begining of this year (Apr13) was $415 Mil.
Total Assets was $441 Mil.
Long-Term Debt was $42 Mil.
Total Current Assets was $153 Mil.
Total Current Liabilities was $131 Mil.
Net Income was 4.622 + 9.104 + 5.855 + 9.019 = $29 Mil.

Revenue was 359.808 + 382.175 + 358.151 + 369.859 = $1,470 Mil.
Gross Profit was 97.314 + 102.92 + 95.637 + 101.199 = $397 Mil.
Total Assets at the begining of last year (Apr12) was $394 Mil.
Total Assets was $415 Mil.
Long-Term Debt was $41 Mil.
Total Current Assets was $173 Mil.
Total Current Liabilities was $101 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.

Village Super Market Inc's current net income was 5. ==> 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.

Village Super Market Inc's current cash flow from operations was 52. ==> 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/Total Assets at the beginning of this year (Apr13)
=5.378/414.933
=0.01296113

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Apr12)
=28.6/394.191
=0.07255366

Village Super Market Inc's return on assets of this year was 0.01296113. Village Super Market Inc's return on assets of last year was 0.07255366. ==> Last year is higher ==> Score 0.

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.

Village Super Market Inc's current net income was 5. Village Super Market Inc's current cash flow from operations was 52. ==> 52 > 5 ==> 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)=Long-Term Debt/Total Assets
=42.141/440.858
=0.0955886

Gearing (Last Year)=Long-Term Debt/Total Assets
=40.968/414.933
=0.09873401

Village Super Market Inc's gearing of this year was 0.0955886. Village Super Market Inc's gearing of last year was 0.09873401. ==> 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)=Total Current Assets/Total Current Liabilities
=153.317/131.395
=1.16684044

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=173.031/100.747
=1.71748042

Village Super Market Inc's current ratio of this year was 1.16684044. Village Super Market Inc's current ratio of last year was 1.71748042. ==> 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.

Village Super Market Inc's number of shares in issue this year was 13.7. Village Super Market Inc's number of shares in issue last year was 13.6. ==> 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)=Gross Profit/Revenue
=401.39/1498.121
=0.26792896

Gross Margin (Last Year)=Gross Profit/Revenue
=397.07/1469.993
=0.27011693

Village Super Market Inc's gross margin of this year was 0.26792896. Village Super Market Inc's gross margin of last year was 0.27011693. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Apr13)
=1498.121/414.933
=3.61051302

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Apr12)
=1469.993/394.191
=3.72913892

Village Super Market Inc's asset turnover of this year was 3.61051302. Village Super Market Inc's asset turnover of last year was 3.72913892. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+0+0+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Village Super Market Inc has an F-score of 4 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.

Village Super Market Inc Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
Q1 1111111111
Q2 1111111111
Q3 1101110010
Q4 1111111111
Q5 1011000111
Q6 1110011011
Q7 0000000010
Q8 1111110010
Q9 0000100010
F-score 7666664495

Village Super Market Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Q1 1111111111
Q2 1111111111
Q3 1111100000
Q4 1111111111
Q5 1111111111
Q6 1111111000
Q7 0010000100
Q8 1111000000
Q9 1010000000
F-score 8797655544
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